Royal Caribbean quantifies Grandeur fire financial hit

MAY 30, 2013 — Royal Caribbean Cruises Ltd. (NYSE, OSE: RCL) yesterday quantified the financial impact of the Grandeur of the Seas fire (see earlier story).

The fire broke out May 27 in what the cruise line describes as “an industrial area on the aft of the ship.”  The company has taken the vessel out of service and expects that it will take approximately six weeks to complete the repair efforts. The company estimates that the direct financial impact of this event, net of insurance, is a reduction of $0.10 per share.  

“The extent of the financial impact was relatively high because the affected sailings were during the premium summer season,” said Jason Liberty, senior vice president and chief financial officer.

The ship is expected to return to service for its July 12, 2013 sailing date.

“We are gratified that no one was hurt and that the safety and comfort systems performed exactly as designed,” said Adam Goldstein, president and chief executive officer of Royal Caribbean International.  “I extend my appreciation to our crew who performed so well, as well as to our guests who have been cooperative, understanding and highly complimentary of the shipboard team throughout.”

The cruise line said yesterday that six sailings had been canceled and that the Grandeur of the Seas was being moved from the Freeport Cruise Terminal to a berth at Grand Bahamas Shipyard where repairs will be carried out.