Hit by the pandemic
Royal Caribbean Group
it lost $ 1.1 billion, or $ 5.02 per share, in the fourth quarter on an adjusted basis versus a profit of $ 1.42 per share the prior year, as revenue fell to $ 34.1 million from $ 2.5 billion.
Royal Caribbean (ticker: RCL), like its peers, has suspended most of its operations for nearly a year due to Covid. With most of its fleet idle, the company has spent hundreds of millions of cash each month.
In a press release Monday, the Miami-based company estimated its monthly cash outlay to be $ 250 million to $ 290 million “during a prolonged suspension of operations.”
As of December 31, the company’s liquidity amounted to about $ 4.4 billion. Last year, to shore up its liquidity, Royal Caribbean raised about $ 9.3 billion of new capital, including debt and equity.
Royal Caribbean did not provide financial guidance for the year, other than that it expects to have losses under generally accepted accounting principles and an adjusted basis for the first quarter and full year of 2021. Chief Financial Officer Jason Liberty told analysts during the fourth quarter of the company. earnings say Monday morning that “the timing and trajectory of the recovery remains uncertain.”
By midmorning, Royal Caribbean shares were up 10%, around $ 86.60.
Speaking to analysts, CEO Richard Fain said a lot has happened from a Royal Caribbean sponsored Covid protocol panel and
Norwegian Cruise Line Participations
(NCLH) published its recommendations last fall. Since then, Covid vaccines have started rolling out.
“We continue to work with the panel” and “to identify the safest path to take in the new post-vaccine environment when we can protect our guests and crew like never before,” Fain said, adding that the company has successfully resumed. some cruises. from Singapore.
A key question is when will Royal Caribbean be able to resume operations in and out of US ports. The Centers for Disease Control and Prevention issued a conditional boating order in late October, but the timing remains uncertain.
The company said it “continues to prepare and develop its plan to comply with the framework” of that order.
“While the framework represents an important step toward getting back into service, many uncertainties remain in the details, time and cost of implementing its requirements,” the statement said.
Royal said it expects to resume its global cruise operation “in a phased manner with initial cruises with lower passenger occupancy, modified itineraries and improved health and safety protocols.”
Cruise operators suffered a setback recently when the Canadian government extended its ban on large cruise ships for another year. That is likely to have an impact on Alaska cruises, which are popular in the summer.
Royal Caribbean said in its press release Monday that reservations for the second half of this year are “in line with the Company’s anticipated resumption of cruises.”
Under GAAP, Royal Caribbean lost $ 6.09 per share in the fourth quarter, compared to a profit of $ 1.30 per share a year earlier.
Throughout 2020, the company lost $ 27.05 per share under GAAP and $ 18.31 on an adjusted basis, reflecting the huge impact of the shutdown due to the pandemic.
In 2019, before the pandemic, the company earned $ 8.95 on a GAAP basis and $ 9.54 on an adjusted basis.
Corrections and amplifications
Royal Caribbean raised about $ 9.3 billion in new capital last year. An earlier version of this article incorrectly omitted the billion.
Write to Lawrence C. Strauss at [email protected]