Net income down, new Oasis-class ship imminent

A decrease in net income for Royal Caribbean’s third quarter did not dampen the announcement that negotiations are underway for the possible construction of a third Oasis-class ship.

Reported during the company’s third quarter results last week, Royal Caribbean International chairman and CEO Richard D. Fain noted that whilst an agreement has not yet been entered into, they hope to do so by the end of the year.

“The Oasis of the Seas and Allure of the Seas have proven themselves to be exceptionally attractive ships by generating the highest guest satisfaction ratings in the fleet couples with very compelling financial returns,” Mr Fain said.

“Ordering another such ship for delivery in 2016, at a lower cost, with better energy efficiency is very consistent with our balanced goals of prudent growth, return improvement and debt reduction.”

Whilst close-in bookings were stronger than anticipated across most itineraries, Royal’s net income was reported at USD$367.8 million or USD$1.68 per share versus USD$399.0 million or USD$1.82 per share in 2011.

Citing the impact of the Costa Concordia tragedy on the second and third quarter results, the company expects the fourth quarter Net Yields to increase by approximately one percent on both Constant-Currency and As-Reported bases.

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Words: Natalie Aroyan

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