Royal Caribbean Cruises shrugged of damage caused to Oasis of the Seas in a shipyard accident to report record first quarter profits.
The world’s second largest cruise conglomerate saw net income rise to more than $275 million from $232.8 million in the same period last year.
Chief financial officer Jason Liberty, reflecting on the peak wave booking period three months, said: “We are very pleased to report another record-breaking quarter and to be driving towards record earnings for the year.
“The demand trends are strong, further exhibiting the strength for our brands and the public’s growing propensity to cruise.”
The company disclosed that Oasis of the Seas suffered extensive damage on April 1, forcing it to be taken out of service for almost a month after two construction cranes collapsed on the back of the ship while in dry dock in the Bahamas.
The vessel had to be transferred to a dock in Europe to be repaired but is due to return to service on Sunday (May 5).
“The company estimates the direct financial impact of this unusual event, net of insurance, will be a reduction of approximately $0.25 per share to the company’s full year adjusted EPS [earnings per share], mostly driven by lost revenue,” the firm said.
“While the incident at the Grand Bahama shipyard had a negative impact on overall revenue, it was neutral to net yields.”
The better first quarter results and an improved revenue outlook are offsetting the “vast majority” of the negative impact of the Bahamas incident and the effect of a stronger dollar and higher fuel prices, the company added.
The number of passengers carried in the three months to March 31 rose to 1.53 million from 1.40 million in the same period last year. Passenger ticket and onboard revenues both rose to a total of $2.4 billion for the quarter.
Giving an outlook for the full year, chairman and CEO Richard Fain said: “It is exciting to see our team exceeding the very bullish revenue targets we established at the beginning of the year.
“We continue to see another great year in a long line of positive results driven by the continued strength of our brands.“
The owner of Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises and Silversea, said: “Overall, the company’s booked position remains at a record level in both rate and volume.
“As it has in the past, the company noted that its booked position on rate and volume is a product of numerous factors including market forces, itinerary composition, market segmentation and the company’s revenue management decisions.”
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