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heidikay
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MIAMI – November 3, 2022 – Royal Caribbean Group (NYSE: RCL) today reported third quarter 2022 Earnings per Share of $0.13 and Adjusted Earnings per Share of $0.26. Third quarter results were better than expected and above guidance for the quarter mainly due to higher load factors from strong close-in demand, further improvement in onboard revenue and better cost performance. The Group also introduced the Trifecta Program, a new three-year initiative designed to drive superior performance.
 
“Last quarter's better than expected performance was a result of the continued robust demand environment and strong execution by our teams,” said Jason Liberty, president and chief executive officer of Royal Caribbean Group. "The combination of our leading global brands, the best and most innovative fleet in the industry, our nimble global sourcing platform and the very best people have delivered a successful return of our business to full operations and positions us well to deliver record yields and adjusted EBITDA in 2023," added Liberty. "The Trifecta Program provides us the financial coordinates we are looking to achieve over the next three years. As we have demonstrated in the past, we expect the formula of moderate yield growth, strong cost discipline, and moderate growth of our fleet will deliver a strong financial profile."
 
Business Highlights
Load factors in the third quarter were 96% overall, with Caribbean sailings reaching almost 105%.
Total Revenue in the third quarter was $3.0 billion, Net Income was $33.0 million and Adjusted EBITDA was $742.3 million
 
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Report seems pretty clean.  Thought it a bit ambitious to predict '25 earnings exceeding '19 given all that debt they have to service.  

 

Speaking of debt, they were modestly cash flow positive for the quarter but despite 95% occupancy still aren't bringing in enough cash to make a dent in that mountain of debt they've accumulated the last three years.  They did succeed in extending the maturity of much of what was scheduled to come due in '22 and '23 but with interest rates rising their adjustable rate debt is going to cost them quite a bit more.  An analyst on CNBC was just speaking of how expensive it's becoming for bbb companies to roll over debt and how higher interest cost is prompting downgrades from rating agencies.    Potentially makes for an ugly viscous cycle.   

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On 11/4/2022 at 2:27 AM, Biker19 said:

For comparison, on about the same revenue ($3.1 B), net income for the same period in 2019 was almost $900M and earnings per share was $4.20.

 

Except in 2019 they weren't coming out of a pandemic that shut cruising for 2 years, and still had ongoing costs.

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  • 1 month later...
Royal Caribbean Group and iCON Infrastructure Partners VI are teaming to develop strategic cruise port infrastructure.
 

iCON VI closed fundraising in June 2022 with $3.6b of capital committed from more than 50 investors. The fund is advised by iCON Infrastructure LLP, which advises funds with cumulative commitments of more than $8b.

 

The partnership plans to own, develop and manage cruise terminal facilities and infrastructure in homeports and key ports of call. It will be owned 90% by iCON VI and 10% by Royal Caribbean Group and managed by an independent team with strategic support from Royal Caribbean. Both parties have committed to provide funding for future expansion in accordance with their percentage interest.

 

Coming out of the pandemic, this is a creative way for the cruise giant to support infrastructure needs. 

 

'It's a positive for the industry as well as destinations looking for ways to service a growing cruise industry,' a source told Seatrade Cruise News.

 

PortMiami Terminal A and projects in Italy, Spain, USVI

The partnership initially will include PortMiami Terminal A and several development projects in Italy, Spain and the US Virgin Islands. It also will pursue additional port infrastructure developments as part of Royal Caribbean Group’s destination development strategy.

 

$210m in net proceeds to Royal Caribbean

At closing, anticipated in first quarter of 2023, Royal Caribbean Group expects to receive net cash proceeds of approximately $210m. The partnership is expected to be accretive to earnings, return on invested capital and leverage metrics and will allow Royal Caribbean Group to continue investing in the development of strategic infrastructure while supporting the goals of its Trifecta program.

 

Royal Caribbean Group President/CEO Jason Liberty called the partnership a 'unique opportunity to catapult us into the coming decades of port investments, build further financial strength and provide exceptional cruising experiences, responsibly.'

 

'Capital-light investment framework'

The partnership, he added, will allow Royal Caribbean to implement a 'capital-light investment framework to accelerate the development of strategic destinations around the world' and said the parties share a commitment to 'sustainability, being a committed partner in each of the destinations we visit and exploring the very best locations around the world.'

iCON is an independent investment group with a focus on high-quality infrastructure assets located predominantly in North America and Europe, with extensive experience investing in ports and port-related infrastructure.

 

Earlier iCon funds have investments in energy companies, including wind power and gas, telecom, transportation, healthcare and container terminals in the Netherlands and Italy. The company has offices in London, Düsseldorf, Toronto and New York. 

 

Sustainability focus

'We are thrilled to be partnering with Royal Caribbean Group to develop, own and manage a portfolio of cruise terminals in key strategic markets,' said Iain Macleod, managing partner at iCON. '... In the years to come, we look forward to delivering new high-quality terminals, working closely with key destination communities and with a strong focus on sustainability.'

 

Royal Caribbean, iCON partner for cruise port infrastructure (seatrade-cruise.com)

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  • 3 weeks later...

RCI has listed this issue in their SEC filings for years:

 

"

Carnival Corporation and Royal Caribbean have announced plans to appeal a Florida Judge’s decision to award the Havana Docks Corporation $440 million in damages. 

 

Judge Beth Bloom in Miami ruled that the use of the Havana Cruise Port Terminal constituted trafficking in confiscated property belonging to the plaintiff, a Delaware-registered company owned by two individuals who claim to be direct descendants of the original owners of the docks in Havana, Cuba.

 

 

The court’s decision marks a significant victory for Cuban Americans seeking compensation for seizing their assets during the Cold War. The plaintiff was awarded a total of $109,671,180.90 in damages from Carnival Corporation and an additional $109,848,747.87 from Norwegian Cruise Line Holdings, Royal Caribbean Group, and MSC Cruises. 

 

In a statement to Reuters, Royal Caribbean Group expressed its disagreement with the ruling. The company stated that it would be appealing the decision, as well as Carnival Corporation, which also “strongly disagreed” with the verdict and emphasized that it had engaged in “lawful travel.”

Meanwhile, Norwegian Cruise Line Holdings declined to comment on the matter, while MSC Cruises did not respond to a request for comment.

 

 

The lawsuit, brought under the Helms-Burton Act, allows U.S. nationals to sue over the use of property seized in Cuba after 1959. Havana Docks accused the cruise companies of using a confiscated dock in Cuba and collecting over $1.2 billion in revenue from their cruises without paying anything to Havana Docks or the Cuban people.

 

Roberto Martinez, the attorney for Havana Docks, commented on the ruling, saying, “This is a very important ruling by Judge Bloom. The commercial use of confiscated property in Cuba in violation of U.S. law carries clearly detailed and well-known and publicized legal consequences.”

 

 

Under the rules and regulations that the Obama administration had set out, the cruise lines were allowed to engage in people-to-people activities but not tourism-related activities. 

 

In March, the cruise lines stated their actions were entirely legal in Cuba and sanctioned under licenses issued by US government organizations. However, Judge Bloom noted that cruise companies had simply interpreted the rules and regulations as they saw fit.

 

Micky Arison, Chairman at Carnival Corporation, knew already in 2019 that Carnival would be liable for damages, as he said in a letter sent to then-President Trump:

 

“President Trump, I wanted to follow up on our discussion regarding Cuba. The news is reporting that Title III of Helms-Burton, the Cuba lawsuit ban, will be fully lifted today. If there are no exceptions or clarifications, we would be subject to significant legal liability for our use Of the Ports.”

 

“We do not own the ports or even manage them, but because we use them, we could be deemed as “trafficking” in confiscated property, and the penalty to my company alone would be over $600 million.”

 

The statement from Micky Arison draws doubts on whether the penalties imposed by Judge Bloom will be withdrawn by any judge, seeing as the cruise companies knew full well they were in the wrong. "

 

Cruise Lines Disagree With Cuba Judgement from Florida Court (cruisehive.com)

Edited by Biker19
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As I understand it Helms-Burton was passed in '96 but every president prior to Trump waived enforcement.  Obama administration relaxed some aspects of embargo when they allowed tourism, including cruising to commence in 2016 but Trump eliminated protections in 2019 in an effort to put pressure on Venezuela.  Cruise lines lost their protection and Havana Docks sued.

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"

Royal Caribbean International closed out 2022 with visits to 230 ports, in addition to 4,636,746 passengers embarked.

 

The cruise line celebrated the achievements in a social media post, which also reveals additional interesting facts.

 

With 26 ships in service around the world, Royal Caribbean’s fleet made a total of 530 calls at Perfect Day at CocoCay – the company’s private island in the Bahamas – during 2022.

 

In Labadee, Royal Caribbean’s private destination in Haiti, a total of 23,980 guests experienced the Dragon’s Breath Zipline – one of the longest over-water ziplines in the world."

 

Royal Caribbean Closed Out 2022 with Over 4.5 Million Guests Embarked - Cruise Industry News | Cruise News

 

^ For context, for 2019 RCG carried 6.5M passengers.

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51 minutes ago, grandgeezer said:

Another $70+ on the share price, reinstate the $3.16 dividend and you’ll be back to where it was in January 2020.

For sure dont need that much. Sold, rebought. Not down that much and my oil stocks and even boring merck etc. Near all time highs for me. My baby RIG hit a yearly high, my trader. 

 

Just happy rcl coming back. Guess it's a reason to be happy about the high cruise prices. 

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The following oddity continues, extremely high daily short volume during a period of rising PPS.  This pretty much runs against the trends in prior months of intra-day short selling during declining PPS and covering for short-term day trader profits.

 

So, do they portend that . . . . 

 

image.jpeg.5a75c874277688554c7e3d671955b9a6.jpeg

 

image.jpeg.8c30c16894a52ba845964b22ffaad164.jpeg

 

 

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