Low Bunker Prices Help Royal Caribbean to Better Than Expected Q3 Results

by Ship & Bunker News Team
Wednesday November 2, 2016

Royal Caribbean Cruises Ltd. (Royal Caribbean) in its third quarter results for 2016, says bunker prices supported the company's better than expected performance.

For the three months to September 30, Royal Caribbean posted an adjusted net income of $690.9 million, compared to $628.1 million during the same period of 2015.

"About half of the outperformance was driven by better than expected revenue performance, with the balance of the improvement being mainly driven by the benefits of a weaker dollar and lower fuel prices," the cruise company said.

Fuel expenditure for the quarter was reported at $178.7 million, compared to $199.8 million for the period last year.

"Our business continues to progress solidly to the Double-Double, and our recent dividend increase is evidence of our confidence in that trajectory," said Richard D. Fain, chairman and chief executive officer.

"It is gratifying to again be headed towards record earnings for the year, above our initial guidance."

Looking ahead, Royal Caribbean said its forecasted consumption is 68% hedged via swaps for the remainder of 2016 and 60%, 45%, 36% and 20% hedged for 2017, 2018, 2019 and 2020, respectively, and the average cost per metric tonne of the hedge portfolio across the same five years is approximately $535, $508, $452, $342 and $340, respectively.

Last week, Ship & Bunker reported Gazpromneft Marine Bunker Ltd (Gazpromneft) delivered more than 32,000 tonnes of bunkers to Royal Caribbean in St Petersburg during the 2016 cruise season.

Ship & Bunker News Team
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