World News
Royal Caribbean Boosts Profits, Lowers Fuel Consumption
Royal Caribbean Cruises Ltd. [NYSE:RCL] (Royal Caribbean), says it increased its profit to $76.2 million in the first quarter of 2013 compared with $47 million for the same period last year as it reduced its fuel consumption by 1.2 percent per available passenger crew day (APCD).
Overall, the company said bunker pricing net of hedging was $699 per metric tonne for the quarter, and consumption was 345,900 metric tonnes (mt), 5,000 mt lower than expected.
The company said bookings have averaged 5 percent ahead of last year so far in 2013, with North America remaining mostly strong while itinerary changes in China have somewhat weakened demand and the European economy has kept demand down there.
The company's passenger ticket sales slipped slightly year-over-year, but onboard and other revenues more than made up for them, leading to an overall 4 percent increase in revenue to $1.8 billion.
"Our brands have continued to generate solid demand despite a soft economy in Europe and recent adverse industry media coverage," said Brian J. Rice, vice chairman and chief financial officer. Rice continued,
"The consumer continues to recognize that we offer a great vacation at an excellent value."
Looking ahead, the cruise company said it has included $236 million and $928 million of fuel expense in its second quarter 2013 and full year 2013 guidance respectively, and has hedged 57 percent of its expected consumption for the remainder of 2013.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 509.00 | 4.50 | 623.00 | 3.00 |
| Rotterdam | 463.00 | 7.00 | 623.50 | 2.00 |
| Houston | 471.50 | 4.50 | 627.50 | 3.50 |
| Fujairah | 501.00 | 4.50 | 714.00 | 1.00 |
| Global 20 Ports Average | 529.00 | 2.50 | 714.50 | 2.50 |
| Global 4 Ports Average | 486.00 | 3.00 | 647.00 | 2.50 |
| Global Average Bunker Price | 572.50 | 2.00 | 753.00 | 2.00 |
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