World News
Royal Caribbean Lowers Its Bunker Consumption
Despite increases in bunker prices, Royal Caribbean Cruises Ltd. [NYSE, OSE: RCL] (Royal Caribbean) reports its fuel costs for 2013 were "in line with 2008 levels" thanks to fuel-saving measures.
"The company has offset a 14% increase in fuel prices by reducing the rate of consumption," it said.
In 2013, Royal Caribbean paid average bunker price net of hedging of $687 per metric tonne (pmt) and used 1.3 million metric tonnes (mt) of fuel, resulting in fuel expenses of $924.4 million.
The company achieved a profit of $473.7 million on revenues of $8.0 billion in 2013, up from a profit of $18.3 million and revenues of $7.7 billion in 2012.
"Six months ago we said we thought we had reached an inflection point and these figures clearly bear that out," said Chairman and CEO Richard D. Fain.
"It has been a challenging year, but the fact that we have achieved our guidance from a year ago nicely demonstrates the strength of our business.
"Despite the lingering impact of 2013's negative media coverage on 2014, the year – and what it portends for future returns – is looking highly promising."
The company said the Caribbean is experiencing pricing pressure, but demand and prices are up for sailings in Europe and Asia.
For 2014, the company predicts that it will use 1.4 million mt of fuel, which would amount to a cost of $944 million based on today's fuel prices.
Royal Caribbean has said energy conservation measures and the unscheduled drydock of a ship reduced its fuel use in 2013.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 624.50 | 1.00 | 732.00 | 8.50 |
| Rotterdam | 571.00 | 3.00 | 758.00 | 16.50 |
| Houston | 591.50 | 4.00 | 760.00 | 5.50 |
| Fujairah | 629.00 | 0.50 | 877.50 | 3.00 |
| Global 20 Ports Average | 637.00 | 0.00 | 819.00 | 3.00 |
| Global 4 Ports Average | 604.00 | 0.00 | 782.00 | 5.50 |
| Global Average Bunker Price | 688.00 | 2.50 | 879.00 | 1.00 |
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