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 sees Q1 bunker costs drop 10%

Cruise operator expects fuel expenses to rise by 1.3% in Q2.



Royal Caribbean's fuel expenses fell by $17.1m to $160.3m in Q1. Image credit: Royal Caribbean Cruises


Updated on 30 Apr 2018 12:28 GMT

Royal Caribbean Cruises Ltd reports that fuel expenses during first quarter (Q1) fell by $17.1 million, or 9.6 percent, to $160.3m, compared to the corresponding period last year.

The cruise operator's bunker consumption was 320,600 metric tonnes, which represents a year-on-year (YoY) dip of 13,400 tonnes, or 4.0 percent, on the 334,000 tonnes bought in Q1 2017.

Bunker pricing net of hedging for Q1 was $500.20 per tonne - a YoY drop of $30.80, or 5.8 percent.

The US cruise firm expects to consume 337,000 metric tonnes during Q2 and 1,338,900 metric tonnes of bunker fuel for the full year.

Based on current fuel prices, the company has forecast Q2 and full-year expenses to be $173m - which would be a YoY increase of $2.3m, or 1.3 percent - and $678m respectively.

Forecasted consumption is 50 percent hedged via swaps for the remainder of 2018 and 47 percent, 36 percent, 14 percent and 0 percent hedged for 2019, 2020, 2021 and 2022, respectively.

For the same five-year period, the average cost per metric tonne of the hedge portfolio is approximately $440, $331, $340, $351 and $0, respectively.

Royal Caribbean estimates that a 10 percent change in the price of bunker fuel would result in a $10m variation in bunker expenses for the second quarter and a $29m correction in fuel costs for the full year.

Overall results

In its overall results for Q1, Royal Caribbean posted a YoY increase in net income of $3.9m, or 1.8 percent, to $218.6m.

Total revenue during the three-month period was $2,028m, up from $2,009m a year ago.

After deducting expenses, operating income amounted to $274.1m - a YoY dip of $5.4m, or 1.9 percent.

Commenting on the company's performance, Richard D. Fain, chairman and CEO, said: "This year is proving to be another strong year with all our brands firing on all cylinders. The market continues to support our growth as our people keep focused on delivering our targets and goals. The strength of this market plus our new ships in 2018 (Symphony of the Seas, Azamara Pursuit, Mein Schiff 1 and Celebrity Edge), position us nicely for 2019 as well."






Related Links:

Royal Caribbean consumes 6.4% less fuel in Q2 as net income jumps 60.7%
Royal Caribbean posts 1.1% rise in bunker costs as net income jumps 116.6%
United States

Latest News:

Oil and fuel oil hedging market update
Mixed news keeps Brent in the upper seventies
MAN contracted to supply IFO 380 propulsion system for seven Russian trawlers
Green Corridor project ends with closing ceremony
DNV GL replaces LNGi with AFI alternative fuels platform
Sale of Odfjell Terminals Rotterdam completed
Oil and fuel oil hedging market update
Oil stocks fall, trade war escalates
Tri-party MoU signed to advance LNG fuel adoption
HHI's LPG-fuelled VLGC granted AiP
ABS gas-as-marine-fuel seminars travel to Europe, Hong Kong
Freight association slams 'yet another surcharge' by box carriers




Page Links:

Prices
Africa
Asia
Latin America
Middle East
North America
North Europe
South Europe
Index Summary
Price Highlights
Commentaries
Futures
Prices
Antwerp
Busan
Fujairah
Houston
Istanbul
Kaohsiung
Las Palmas
Maracaibo
New Orleans
Piraeus
Rio de Janeiro
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