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RCCL aims to double earnings per share over next three years

By Tom Stieghorst
Royal Caribbean Cruises Ltd. (RCCL) set a dual goal of boosting its return on invested capital to double digits and doubling its 2014 earnings per share over the next three years.

The “Double-Double” program was announced in its second-quarter earnings report, which showed net profit soared to $137.7 million, up from $24.7 million a year earlier.

In publicly announcing its financial targets, RCCL said “articulating clear and specific goals helps guide internal decision-making as well as better informing investors of the path of the business.”

Net yields for the quarter were up 2.6%, at the top of RCCL’s guidance, driven by strong booking trends for Europe and China sailings. There was continued softness in the Caribbean.

RCCL said that because of the strong quarter, it was boosting 2014 projected profit by $22 million to a range of $755 million to $777 million.

Second-quarter revenue rose to $1.98 billion from $1.88 billion a year earlier.

Royal Caribbean orders fourth Oasis-class ship

By Tom Stieghorst
Royal Caribbean Cruises Ltd. said it will move forward with a fourth in its Oasis-class of ships, the largest in the world at 5,400 passengers and 225,000 gross tons.

RCCL Chairman Richard Fain made the announcement at the STX France shipyard in St. Nazaire while there for the keel laying ceremony of the third Oasis-class ship, which is to be delivered in 2016.

The first two ships in the class, the Oasis of the Seas and the Allure of the Seas, have been in high demand since they debuted in 2009 and 2010, respectively. They both sail Caribbean itineraries from Port Everglades.

The fourth Oasis-class ship is scheduled to be delivered in 2018. RCCL hasn’t announced where either ship will be sailing after delivery.

Each of the ships costs more than $1 billion to build, but RCCL didn’t disclose an exact price for the newly ordered vessel.