STX France wins order for Royal Caribbean’s third Oasis

DECEMBER 27, 2012 — Royal Caribbean Cruises Ltd. (NYSE, OSE: RCL) announced today that it has executed a contract with STX France to construct a third Oasis-class vessel for delivery in mid-2016. It said that the order is “consistent with the plan announced by the company in October to build a sister-ship to the very successful Oasis of the Seas and Allure of the Seas.”

When Royal Caribbean made its October announcement (see earlier story) it did not disclose the shipbuilder with which it was negotiating and it was generally assumed that the order would go to STX Finland. Finnish media had reported that STX Finland had been negotiating to get export credit support that would win it the order. Be that as it may, STX France has won the order.

“The Oasis of the Seas and Allure of the Seas have fundamentally transformed the cruise experience for our guests,” said Richard D. Fain , chairman and chief executive officer of Royal Caribbean Cruises Ltd. “These ships have consistently generated outstanding guest satisfaction ratings and continue to produce superior financial results. We are thrilled to be adding a sister to this extraordinary class of vessels at a compelling price. Being back building in France just adds to the pleasure.”

The 225,282 gt Oasis Class ships are the world’s largest cruise ships with a length of
361.6 m (1,186.5 ft) overall and maximum beam of 65 m (213 ft). They have a capacity of 5,400 passengers at double occupancy.

“STX France is proud to partner with Royal Caribbean again and continue our decades-long relationship by building the third Oasis-class ship,” said Laurent Castaing , chief executive officer of STX France. “Royal Caribbean has always been an important part of our shipyard’s success, and we are delighted to add this highly innovative and spectacular ship to the list of vessels we have built together.”

The newbuild contract includes the transfer of Pullmantur’s Atlantic Star as part of the consideration. Additionally, the contract is subject to satisfaction of financing and other conditions. STX France has also provided the company with a one-year option for the mid-year 2018 delivery of a fourth Oasis-class vessel at similar pricing.

Including today’s contract and existing ship orders, projected capital expenditures for 2012, 2013, 2014, 2015 and 2016 are $1.3 billion, $700 million, $1.2 billion, $1.2 billion and $1.3 billion, respectively. The compan’ says that its annualized capacity growth rate from 2012 to 2016 remains at a historically low rate of 3.5 percent.