BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry



« News Home
:: Monthly Archive

News Topics
:: Air Pollution
:: Agreements & M&A's
:: Alternative Fuels
:: BunkerBlog
:: Cargoes & Storage
:: Company News
:: Efficiency, Costs & Charges
:: Environment
:: Events
:: Financial
:: Fuel Quality & Testing
:: Lubes & Additives
:: Oil Spills
:: People
:: Port News
:: Projects
:: Regulation, Legal
:: Services, Products,Technology
:: Statistics & Research
:: Vessels

Regional Archive
:: Americas
:: Asia/Oceania
:: Europe
:: M.East/Africa


BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
Home » News





Royal Caribbean consumes 6.4% less fuel in Q2 as net income jumps 60.7%

02 Aug 2017 10:22 GMT

Cruise operator saw H1 bunker expenses drop 1.2% and net income skyrocket 77.6%.



Royal Caribbean Cruises Ltd reports that fuel expenses during second quarter (Q2) fell by $5.9 million, or 3.3 percent, to $170.7 million, compared to the corresponding period last year.

For the first half (H1) of 2017, the world's second-largest cruise operator recorded a year-on-year (YoY) drop in bunker costs of $4.3 million, or 1.2 percent, to $348.2 million.

Royal Caribbean said Q2 bunker consumption fell by 22,000 tonnes, or 6.4 percent, to 324,000 tonnes. Bunker pricing net of hedging in Q2 was $527 per metric tonne - up from last year's $511-per-tonne price.

The US cruise firm expects to consume 329,000 metric tonnes of bunker fuel in Q3 and 1,334,000 metric tonnes this year.

Based on current fuel prices, overall bunker expenses in 2017 are forecast to be $706 million, with $176 million expected to be spent in Q3.

Forecasted consumption is 64 percent hedged via swaps for 2017 and 54 percent, 45 percent, 35 percent and 15 percent hedged for 2018, 2019, 2020 and 2021, respectively.

For the same five-year period, the average cost per metric tonne of the hedge portfolio is approximately $487, $421, $331, $340 and $351, respectively.

Royal Caribbean estimates that a 10 percent change in the price of bunker fuel would result in an $8 million variation in bunker expenses in Q3 and a $15 million correction in fuel costs for the full year.

Overall results

In its financial results for Q2, Royal Caribbean posted a net income of $369.5 million compared to $229.9 last year - representing a YoY rise of $139.6 million, or 60.7 percent.

Total revenue during the three-month period was $2,195 billion, up from $2.105 billion a year ago. After deducting expenses, operating income amounted to $419.7 million - a YoY improvement of $137.4 million, or 48.7 percent.

In H1, net income was up $255.2 million YoY, or 77.6 percent, to $584.2 million. Operating income rose $253.8 million, or 57.0 percent, to $699.2 million, whilst revenue was at $4.204 billion, up from last year's figure of 4.023 billion.

"Our brands are executing beautifully, keeping the business in an exceptionally strong position," said Richard D. Fain, chairman and CEO. "Strong close-in demand for cruise bolstered the quarter, and we see further uplift for the balance of the year, positioning us well for the Double-Double and beyond."

Image: Royal Caribbean's Harmony of the Seas cruise vessel.






Related Links:

Royal Caribbean posts 1.1% rise in bunker costs as net income jumps 116.6%
Gazpromneft supplies more than 32,000 tonnes to Royal Caribbean in St. Petersburg
Carnival posts 58.2% jump in Q2 bunker costs
Trasmediterranea posts drop in earnings, citing higher bunker costs
Carnival's bunker costs drop 27% in 2016, expects $315m rise next year

Latest News:

Cockett expands commercial team with 19 hires
Goltens partners with Yara Marine on SOx scrubbers
IBIA names Michael Green as new chairman
Oil and fuel oil hedging market update
Brent crude took modest gains yesterday
ABS issues SOx and NOx emissions reminder
Lubmarine extends EAL range with launch of BIO OG PLUS
First concurrent bunkering operation performed at Stolthaven Singapore
Furukawa Battery certified as approved supplier of marine batteries
Quadrise: Fuel production system commissioned in Saudi Arabia
Is oil heading for the 70s or lower 60s?
Oil and fuel oil hedging market update




Page Links:

Prices
Africa
Asia
Latin America
Middle East
North America
North Europe
South Europe
Index Summary
Price Highlights
Commentaries
Futures
Prices
Antwerp
Busan
Cape Town
Fujairah
Houston
Istanbul
Kaohsiung
Las Palmas
Maracaibo
New Orleans
Piraeus
Rio
Rotterdam
Santos
Singapore
News
Latest News
Blogs
Archive
Americas
Asia
Europe
Middle East
News
Air Pollution
Agreements & M&A's
Alternative Fuels
Cargoes & Storage
Efficiency, Costs & Charges
Environment
Events
Financial
Fuel Quality
Lubes & Additives
Oil Spills
People
Port News
Projects
Regulation/Legal
Services, Products, Technology
Statistics & Research
Vessels
Contact & Terms
Contact Us
Advertise
Terms & Conditions
Privacy Policy
Events
Upcoming Events