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Wednesday, November 14, 2018

Po Princess News

Carnival’s Arison is ‘Delighted’ About Merger Decision Delay

Micky Arison, the Chairman and Chief Executive of Carnival, commented on the result of the P&O Princess EGM, stating: "We are delighted with the adjournment of the P&O Princess EGM. We are committed to giving P&O Princess shareholders the opportunity to accept our increased offer and we will focus all our efforts on securing regulatory clearance. We believe that shareholders have effectively asked to maintain the adjournment until the regulatory processes for both Carnival and Royal Caribbean have been completed; we trust the Chairman will respect that mandate. We would like to thank the P&O Princess shareholders for their support throughout this process, and look forward to welcoming them as shareholders of the enlarged Carnival group in the future." Royal Caribbean Cruises Ltd.

P&O CreditWatch Implications Revised Due to Postponed Merger

Standard & Poor's said that it had revised its CreditWatch implications to developing from negative on U.K.-based cruise operator P&O Princess Cruises PLC (triple-'B' long-term corporate credit rating). This action follows news that the shareholder vote on the proposed merger with Royal Caribbean Cruises Ltd. has been postponed indefinitely after an unsolicited bid from Carnival Corp. The ratings on P&O Princess were initially placed on CreditWatch with negative implications on Nov. 20, 2001, to reflect a material increase in financial leverage, which the company is likely to incur if the proposed merger with RCL goes ahead. The revised CreditWatch status reflects the increased chances of P&O Princess' merger with the higher rated Carnival.

Wall Street Worries About Cruise Fleet Pricing

The big cruise lines have been steadily filling their rapidly expanding fleets with passengers looking to escape an especially harsh North American winter, but as they get ready to release quarterly results, Wall Street is worried that ticket prices may not be high enough. Analysts are expecting profit declines for the winter quarter from the top three cruise lines, starting with industry leader Carnival Corp., which plans to release its fiscal first-quarter results on Wednesday (March 21, 2001). Cruise stocks, including those of Royal Caribbean, the world's No. 2 operator, and Britain's P&O Princess Cruises, which ranks third, have in recent weeks given up much of their bounce back gains after a sustained decline last year.

Carnival Reports Second Quarter Results

Carnival Corporation & plc reported net income of $127.8 million ($0.19 Diluted EPS) on revenues of $1.33 billion for its second quarter ended May 31, 2003, compared to net income of $194.2 million ($0.33 Diluted EPS) on revenues of $989.9 million for the same quarter in 2002. Earnings per share for the second quarter of 2003 were reduced by $0.02 per share due to litigation and other charges associated with the dual listed company ("DLC") transaction with P&O Princess Cruises plc ("P&O Princess"). In addition, because of the seasonality of P&O Princess' business, the consolidation of P&O Princess' results reduced the company's second quarter 2003 earnings per share by $0.01 per share.

Fitch Comments On Carnival Corporation

Fitch Ratings has maintained the Rating Watch Negative status on Carnival Corporation's 'A' senior note rating and 'F1' commercial paper rating due to the uncertainty surrounding the potential merger of Carnival Corporation and P&O Princess Cruises, which is currently pending regulatory review. The outcome of the review process is likely to be determined around mid-summer. Operating fundamentals in the industry have rebounded more quickly than originally expected. Following the events of Sept. 11, net revenue yields were expected to decline approximately 15 percent during the first quarter of 2002 compared to the first quarter of 2001. However, CCL actually experienced a much less severe drop in net revenue yields, posting a decline of 7.5 percent.

Royal Caribbean Responds to Referral Decision

Royal Caribbean Cruises Ltd., was notified of the decision by the Secretary of State for Trade and Industry to refer its proposed merger with P&O Princess to the Competition Commission for further review. Royal Caribbean believes strongly that the proposed merger will deliver significant consumer benefits, as well as shareholder value. Richard Fain, Chairman and Chief Executive of Royal Caribbean, said: "We have never taken regulatory approval for granted. This referral in no way detracts from our determination to complete the merger on the agreed timetable". Goldman Sachs International and Cazenove & Co. will not be responsible to anyone other than Royal Caribbean for providing the protections afforded to customers of Goldman Sachs International and Cazenove & Co.

Competition for Princess Cruises Heats Up With Arison Entry

Despite the less-than-stellar performance by the cruise industry during the last part of 2001, the industry more than had its fair share of newsmaking events — aside from the September 11 terrorist attacks — which ultimately exposed the fraility of this leisure sector. Beginnning with the demise of Renaissance Cruises almost immediately after the attacks, the industry suffered an additional blow in October when American Classic Voyages’ (AMCV’s) subsidiary U.S. Lines filed Chapter 11 — causing the dream of American cruiseship building to cease before it could even begin. These events, which were almost reminisicent of the faltering cruise industry of the 1970’s…

P&O Princess Rejects Carnival’s Offer

The Board of P&O Princess states that, at the end of last week, Carnival conveyed its interest in a possible transaction with P&O Princess. Carnival's proposal is subject to several pre-conditions including regulatory approval and financing. After consider Carnival's proposal and reviewed it with its financial and legal advisors. Based on this review, the board has concluded that the proposed dual listed company transaction with Royal Caribbean remains the most attractive alternative for P&O Princess shareholders. The board believes, and has been advised, that the Carnival proposal is not as favorable financially to P&O Princess shareholders and would face greater execution risk than the transaction with Royal Caribbean.

Royal Caribbean Reaffirm Commitment to P&O Princess Cruises Merger

Royal Caribbean Cruises, Ltd. today reaffirmed its commitment to the merger it has signed with P&O Princess Cruises plc that was announced on November 20, 2001. Richard Fain, Chairman and Chief Executive Officer of Royal Caribbean said, "Royal Caribbean supports P&O Princess' decision to postpone their EGM, in order to give its shareholders time to fully consider their alternatives. “I am convinced that the merger we have agreed with P&O Princess will provide both sets of shareholders the greatest long-term value going forward, and that P&O Princess shareholders will recognize that the transaction with Royal Caribbean is superior in all respects to the takeover proposal from Carnival."

Carnival Gives RCCL A Run For Its Money

Exactly one month to the day that P&O Princess and Royal Caribbean Cruise Lines announced that they would merge to form a $6 billion cruise corporation, Micky Arison's powerhouse Carnival Corp. approached P&O with a $4.59 billion proposal. As reported in today's Wall Street Journal, P&O Princess, which initially rejected Carnival's offer, has now reconsidered and is currently weighing all its options of a possible merger with the "world's largest cruise line," - quite possibly leaving Royal Caribbean hanging out to dry. Despite these new developments, Royal Caribbean still stands firmly on its initial agreement with P&O Princess, according to Richard Fain, RCCL's chairman and CEO.

Circular for Combination With Royal Caribbean Cruises Posted to P&O Princess Shareholders

P&O Princess Cruises plc posted its shareholder circular in relation to its proposed combination with Royal Caribbean Cruises Ltd. The circular contains the board's recommendation to shareholders to vote in favor of the merger with Royal Caribbean at the EGM to be held on February 14, 2002. In the circular, the Board sets out the benefits that are expected to be realized from the combination. The strategic fit between P&O Princess and Royal Caribbean is strong, combining complementary brands and two high quality fleets. The combination is expected to deliver significant cost savings, estimated to be at least $100 million on an annualized basis.

$6 Billion Merger Tightens Cruise Industry

On Tuesday, November 20, a major announcement shocked the cruise and financial industries when Richard Fain, chairman and CEO of Royal Caribbean Cruise Lines, and Peter Ratcliffe, CEO of P&O Princess held a press conference in London to report that their two respective lines would join forces to form the world's largest cruise line, in a deal worth more than $6 billion. MR/EN had the opportunity to dial in to the conference, which occurred the morning of the merger at London's Lincoln Centre, to provide a first-hand account of this monumental transaction. In an era filled with terrorism, turmoil, economic frustration, massive layoffs and steep cutbacks…

Cruise Industry Annual: Sick Ships, Project America and a Merger

2002 will surely not be counted as “a banner year” for many, if any, industries, particularly not for the leisure and travel niche. The cruise industry survived a tough year, as terrorism, a shakey economy and sickness outbreaks onboard ships grabbed headlines. But it is important to note that the industry did survive. Cruise lines were not as profitable as years past, but last year’s challenges present future opporunities. The end of 2002 closed out with a broken merger agreement between P&O Princess and Miami, Fla.-based Royal Caribbean, which, if completed, would have tallied up to a $6 billion operation. Taking the industry surprise in November 2001, the two companies even managed to keep their trade secret from the industry's powerhouse — Carnival Corp.

Royal Caribbean Reports 4Q Results

Royal Caribbean Cruises Ltd. has announced their fourth quarter earnings of $38.3 million, or $0.20 pershare, compared to a net loss of ($39.0) million, or ($0.20) per share, in 2001. merger with P&O Princess. performance. quarter were up 10.6% compared to previous guidance of 7% to 9%. experienced in 2001. aftermath of 9/11," said Bonnie S. Royal Caribbean Cruises Ltd. compared with $254.5 million, or $1.32 per share, in 2001. settlement. have been $338.3 million, or $1.72 per share. negatively impacted by the events of September 11 and ships out of service. The comparable figures for 2001 were $318.9 million, or $1.65 per share. billion in 2001. decrease in the air/sea mix from 24.0% in 2001 to 14.2% in 2002. 2001, but down 5.0% on a per available passenger cruise day basis.

P&O Princess Closer to Carnival Deal

Carnival and P&O Princess have entered into an agreement to combine the two companies through a dual listed company structure. transaction to P&O Princess shareholders. satisfied. available capacity. from disseminating best operating practices throughout the Combined Group. enterprise. pursue common objectives. executive management team. EGM. be affected by the change to the parent company name. shares for each P&O Princess share. existing issued share capital of P&O Princess at approximately £3.3 billion. Carnival shareholders will hold approximately 74 per cent. shareholders will hold approximately 26 per cent. Combined Group. Offer. of 20 per cent. of P&O Princess' issued share capital. Princess in the FTSE 100 are expected to be retained. the UK.

Moody’s May Now Raise P&O Princess Rating

Moody's today has changed the direction of its current review of the Baa3 long-term debt rating for P&O Princess Cruises PLC to possible upgrade from developing. dual listed listed company ("DLC") structure. DLC transaction. resulting from such a scenario has eased. (likely) or a failure to complete (less likely). the combined entity. erosion. investment program funded by additional debt. industry to remain challenging. either Carnival or Royal Carribbean was considered in the rating.

Hogan & Hartson Praises FTC Clearance

Firm headquartered in Washington, D.C. and regular antitrust counsel to Carnival Corporation, praised today's decision by the Federal Trade Commission (FTC) to close the investigation into the proposed combination of Carnival Corporation and P&O Princess Cruises plc. Carnival to proceed with its offer to Princess shareholders. The European Commission had previously granted clearance. the relevant industry and the impact of the specific transactions under review. Hogan & Hartson advised Carnival on U.S. antitrust issues related to the proposed P&O Princess acquisition from the beginning of the transaction and represented the company in the FTC investigation. firm coordinated "rest of world" competition filings outside of the U.S. and the European Union.

Carnival Reports 3Q Earnings

Carnival Corporation & plc reported net income of $734.3 million ($0.90 Diluted EPS) on revenues of $2.52 billion for its third quarter ended August 31, 2003, compared to net income of $500.8 million ($0.85 Diluted EPS) on revenues of $1.44 billion for the same quarter in 2002. Net income for the nine months ended August 31, 2003 was $988.9 million ($1.42 Diluted EPS) on revenues of $4.90 billion, compared to net income of $824.6 million ($1.40 Diluted EPS) on revenues of $3.34 billion for the same period in 2002. Earnings per share for the third quarter and nine months of 2003 were reduced by $0.02 and $0.01, respectively, due to the dilutive impact of the company’s zero-coupon convertible notes, which became convertible for the first time at the end of the third quarter of 2003.

Princess Cruises Profits Plummet 64%

P&O Princess Cruises reported a widely expected slump in first-quarter profits, with earnings partly dented by lower cruise prices. Pre-tax profits for the three months ending March fell 64 percent from the same period last year to $18.9 million. Basic earnings per share for the company -- which was demerged from ports, logistics and ferry operator P&O last year -- fell to 2.6 cents for the quarter from 6.6 cents a year ago. Cruise operators such as P&O Princess, Carnival and Royal Caribbean have all felt the effects of the U.S. economic slowdown on their revenues and earnings. Royal Carribean, the world's second biggest cruise group behind Carnival, said on Wednesday that first-quarter profits nearly halved from early 2000 as U.S. economic weakness led to lower ticket prices.

$6 Billion Dollar Merger Rocks Cruise Industry

On Tuesday, November 20, a major announcement shocked the cruise and financial industries when Richard Fain, chairman and CEO of Royal Caribbean Cruise Lines, and Peter Ratcliffe, CEO of P&O Princess held a press conference in London to report that their two respective lines would join forces to form the world's largest cruise line, in a deal worth more than $6 billion. MR/EN had the opportunity to dial in to the conference, which occurred the morning of the merger at London's Lincoln Centre, to provide a first-hand account of this monumental transaction. In an era filled with terrorism, turmoil, economic frustration, massive layoffs and steep cutbacks…

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