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June 21, 2001
RCL defers newbuilding options
Royal Caribbean Cruises Ltd. says it has deferred its options to purchase a fifth and sixth ship within its new Radiance class.
Royal Caribbean and Meyer Werft, Papenburg, Germany, builder of the Radiance-class ships, agreed to extend the options to July 26, 2002. Both options were to have expired on June 27, 2001.
Carnival revenues up, net income down
Carnival Corporation reported net income of $187.0 million ($0.32 Diluted EPS) on revenues of $1.08 billion for its second quarter ended May 31, 2001, compared to net income of $204.0 million ($0.34 Diluted EPS) on revenues of $875.1 million for the same quarter in 2000.
Net income for the six months ended May 31, 2001 was $314.9 million ($0.54 Diluted EPS) on revenues of $2.09 billion, compared to net income of $375.5 million ($0.61 Diluted EPS) on revenues of $1.70 billion for the same period in 2000.
The company's second quarter 2001 cruise operating income increased by 20.2 percent to $241.2 million compared to $200.7 million in the second quarter of 2000. Excluding Costa Cruises, which the company consolidated for the first time this year, cruise operating income increased 14.3 percent compared to the second quarter of 2000.
Chairman and CEO Micky Arison said that "in spite of the continuing weak economic environment we were still able to achieve strong growth in the operating earnings of our cruise brands. A combination of an 8.4 percent increase in capacity, a 1.8 percent increase in net revenue yields (revenue per available berth day), and lower operating cost per available berth day helped to drive the growth in our second quarter operating earnings."
Second quarter 2001 net income includes increased losses of $11.3 million, compared to the same quarter in 2000, from the company's investment in Airtours plc, which was recently sold. In addition, second quarter 2000 net income included non-recurring net gains of $10.7 million from affiliated operations, and $6.6 million of net compensation received from a shipyard related to the late delivery of Holland America Line's Zaandam.
Looking to the remainder of fiscal 2001, Arison noted that the slowing of the economy continues to put pressure on cruise pricing, especially for the company's higher end cruise brands. "However, the North American contemporary cruise segment continues to perform quite well despite the slowing economic environment," Arison said.
Northrop Grumman extends its offer for NNS
Northrop Grumman Corporation today announced that it has extended its pending exchange offer for all outstanding shares of common stock, including associated rights, of Newport News Shipbuilding Inc. from June 20, 2001, to July 5, 2001, at midnight E.D.T.
Approximately 861,000 shares of Newport News Shipbuilding common stock had been tendered as of midnight E.D.T. on June 20, 2001.
J. Ray McDermott gets spar contract
McDermott International, Inc. announced today that SparTEC, Inc., a subsidiary of J. Ray McDermott, received a $200 million turnkey engineer-procure-construct-install contract, to provide a spar platform for the development of the Devils Tower field in the Gulf of Mexico. The field is owned by Dominion Exploration and Production, Inc. and Pioneer Natural Resources Company and operated by Dominion. The Devils Tower spar will be located in 5,610 feet of water in Mississippi Canyon Block 773, making it the worlds deepest dry tree platform.
SparTEC will act as the general contractor and overall project manager for the design engineering, procurement, fabrication, installation and commissioning of the facility. Work on the project, which is scheduled to enable first production by mid-2003, will begin immediately.
SparTEC will utilize J. Ray McDermott assets, worldwide, to complete the Devils Tower platform. Detailed engineering of the hull mooring and topsides will be completed in Houston. The hull will be fabricated at the companys Batam Island facility in Indonesia. Topsides will be prefabricated in Mexico at the companys TNG shipyard and assembled and outfitted at its Harbor Island fabrication yard near Corpus Christi, Texas. Work at Harbor Island will be completed under a strategic alliance with Bay Ltd. The companys Mentor Subsea Technology Services, Inc. subsidiary will design and procure production risers, and the companys marine division will be responsible for offshore installation, hookup and commissioning.