The financial losses suffered by the cruise industry during this pandemic period have been staggering for the few, if not all. This became clear on Monday when the Royal Caribbean Group announced a net loss of $5.8 billion. Net income for the year 2020 was estimated at $1.9 billion (or $27.05 per share).
The second parent company of Royal Caribbean International, which also includes Celebrity Cruises, Azamara (sold this quarter) and Silversea Cruises, also reported a net loss of $1.4 billion in the fourth quarter of 2020, compared to net income of $273.1 million in the fourth quarter of 2020.
As part of global containment measures in response to the COWID-19 pandemic, Royal Caribbean Group Brands has suspended cruise operations from 13. Mars 2020 stopped voluntarily. It has been used on most ships up to at least 30. April 2021.
Richard Fain, President and Chief Executive Officer of the Royal Caribbean Group (pictured right), said in a report : The COVID-19 pandemic has had a painful and profound impact on our world and our business community; this crisis is perhaps the most severe in the history of society. But we were impressed and grateful for our team’s resourcefulness and responsiveness in meeting these unprecedented challenges.
He continued: More importantly, we remain confident that our company will recover and return to the positive path it has previously embarked upon. The sharp decline in the number of cases and the increasing availability of vaccines are encouraging. We are looking forward to showing the world to people again and creating great memories.
Jason Liberty, Executive Vice President and Chief Financial Officer, added : These results reflect the staggering impact that the 2020 pandemic will have on our businesses and the entire industry. I would like to thank all of our teams for taking on the challenges of the most difficult year in Royal Caribbean’s history.
With an average monthly consumption of $250-290 million. Royal Caribbean Group has taken proactive steps to increase its liquidity by reducing costs and capital, taking steps to preserve liquidity and raising additional funds in response to the suspension of flights in most cases worldwide.
From the 31st. As of December 2020, the Company’s cash position was approximately $4.4 billion. By 2020, the Company raised approximately $9.3 billion in new capital through a combination of debt issuances, common stock issues and other borrowings. For example, it completed a $1 billion IPO in December 2020.
List of What You Read
Reservation adjustment
Celebrity Cruises’ Celebrity Edge // Photo : Cruises
Bookings for the second half of 2021 are in line with the expected upturn in cruise business, the company said in a financial press release, noting that the pricing of these bookings is higher than in 2019, with and without the dilutive effect of future cruise credits (FCC).
While the runners for the remaining 2022-2023 seasons are still on sale, the runners for the first and second quarters of 2022 have been open for some time. Cumulative pre-orders for the first half of 2022 are in the historical range and at higher prices, the company said. This was achieved with minimal sales and marketing costs, indicating strong long-term cruise demand.
Approximately 75% of bookings for 2021 are new, with 25% coming from FCC buyouts and the Lift & Shift program.
From the 31st. As of December 2020, the firm had $1.8 billion in client deposits, 50% of which were in FCC accounts. Following the suspension, approximately 53% of customers who had booked cancelled yachts requested a refund.
Health and safety
The Royal Caribbean Group said it continues to work and collaborate with the Healthy Sail Group, epidemiologists, health authorities and governments around the world to ensure a safe and healthy return for the guests, crew and communities who visited the ship. Although the situation remains highly volatile, management says knowledge of the virus and its spread is improving.
The company has already begun limited cruise operations. For example, Quantum of the Seas launched from Singapore in December. The subsidiary TUI Cruises, which offers cruises for European customers, has been operating three ships in the Canary Islands since November.
Guests are giving very positive feedback, and we’re also seeing a higher than expected percentage of first-class cruisers, Fain said. We believe that these campaigns, even before vaccines are available, will help us learn and show others how to operate successfully in the current VIDOC-19 environment.
The Royal Caribbean Group also said it continues to prepare and develop its plan to comply with the Centers for Disease Control and Prevention’s (CDC) published framework for shipping in the United States. The company noted that while this system is an important step towards the resumption of operations, there are still many uncertainties regarding the details, timing and cost of implementing the requirements.
Overall, and in response to the challenges of the pandemic, the Royal Caribbean Group of Companies plans to gradually resume its global cruise operations, beginning with a reduction in passenger numbers, a change in itineraries and an improvement in health and safety protocols.
Azamara Reserve (above) in Kotor, Montenegro // Photo by Azamara
If he starts again, he’ll have one less badge: Azamara. The 29th. In January 2021, the Company announced a definitive agreement to sell this brand to Sycamore Partners, an all-cash transaction for $201 million. The deal is expected to close this quarter and will cover Azamara’s fleet of three vessels and associated intellectual property.
The company has also withdrawn three other ships from its fleet in 2020: Celebrity Xperience, Majesty of the Seas and Empress of the Seas, as well as the three ships deployed by its Pullmantur arm.
Capital expenditures planned for 2021 are $2.1 billion and will be driven primarily by new construction projects for which funding commitments have already been received. In 2021, Royal Caribbean Group expects to deliver Odyssey of the Seas and Silver Dawn in the first and fourth quarters, respectively.
Two deliveries are scheduled for 2022 – Wonder of the Seas and Star Beyon, both with mandatory financing :
We continue to focus on improving liquidity, controlling operating costs and ensuring our family of brands is ready to resume operations, Mr. Liberty said. We are well positioned to become more competitive and offer world-class vacations, which should enable us to make unquestionable profits and generate a solid bottom line.
2021 Outlook
As the Company’s operations continue to be affected by VIDOC-19, the Royal Caribbean Group states that it cannot provide a reasonable estimate of its financial or operating results. However, the Company expects to record a net loss for both the first quarter of 2021 and the full year 2021, the magnitude of which will depend on many factors, including the timing and extent of the recovery.
Related stories
Royal Caribbean Group’s loan program is open for applications.
Romance at sea: Endless possibilities for couples
Costa begins cruises on the 27th. Walk again with Costa Smeralda on
Christine Duffy, who was selected by the National Chair of Tourism of the United States during the carnival.
Related Tags:
royal caribbean annual report 2017,royal caribbean sec,royal caribbean stock,royal caribbean international,Privacy settings,How Search works,rcl,royal caribbean stock price,rcl stock price