3rd Quantum Class Ship Ordered

[mtsnd1900]

Just saw this article pop up...

 

http://www.fool.com/investing/general/2013/05/30/royal-caribbean-orders-3rd-quantum-class-cruise-sh.aspx

 

Royal Caribbean Orders 3rd Quantum-Class Cruise Ship

 

By Caroline Bennett

May 30, 2013

Royal Caribbean Cruises (NYSE: RCL ) has signed a contract with shipyard Meyer Werft to begin building a new Quantum-class cruise ship, its third such vessel, the company announced today. The ship is scheduled for delivery during the middle of 2016.

 

 

The Quantum style of ship generally spans 16 decks and can carry up to 4,180 people at double occupancy of its 2,090 staterooms. According to Royal Caribbean CEO Adam Goldstein, "The Quantum class will offer vacationers more unexpected activities in the most extraordinary spaces, and a third ship will offer even more opportunities for vacationers to experience Quantum cruising."

 

 

The currently unnamed vessel will make its debut following the maiden voyages of Royal Caribbean's original two Quantum-class cruise ships. Quantum of the Seas is scheduled to debut in 2014, while the maiden voyage for Anthem of the Seas is slated for 2015. Royal Caribbean expects to expand its capacity by 4% annually between 2012 and 2017.

The most recent contract, along with existing ship orders, has brought Royal Caribbean's projected capital expenditures for 2013 to $700 million, $1.2 billion for both 2014 and 2015 ($2.4 billion total in those two years), and $2.1 billion for 2016.

 

 

Royal Caribbean Cruises owns Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises and CDF Croisieres de France, as well as TUI Cruises through a 50% joint venture. These six brands operate a combined total of 41 ships with six under contract.

 

 

http://finance.yahoo.com/news/royal-caribbean-signs-contract-third-123100547.html

 

Royal Caribbean Signs Contract For Third Quantum-Class Cruise Ship

 

MIAMI, May 30, 2013 /PRNewswire/ -- Royal Caribbean Cruises Ltd. (NYSE, OSE: RCL) announced today that it has signed a contract with the Meyer Werft shipyard to construct a third Quantum-class cruise ship for delivery in mid-2016. The price and terms of the new ship are similar to the price and terms of the first two Quantum-class ships and the contract is subject to financing conditions.

 

The company recently unveiled details of this new class of ship and was gratified by the public response to the design innovations. It also said that the new design included an advantageous configuration which includes a greater proportion of higher priced staterooms and that it achieves some of the greatest energy efficiencies at sea.

 

"We are creating a compelling experience for vacationers with innovative design, winning service, and appealing destinations around the world," said Richard D. Fain, chairman and chief executive officer of Royal Caribbean Cruises Ltd. Brian J. Rice, vice chairman added, "This order follows our stated goals of moderate growth, driving improved returns and leading to an investment grade rating."

 

"We are encouraged by the very positive response we received from travel agents and consumers when we first announced some of the unprecedented offerings on Quantum Class last month," said Adam Goldstein, president and chief executive officer of Royal Caribbean International. "The Quantum class will offer vacationers more unexpected activities in the most extraordinary spaces, and a third ship will offer even more opportunities for vacationers to experience Quantum cruising."

 

The yet-unnamed Quantum-class vessel will join the Royal Caribbean International fleet, alongside Quantum of the Seas, which will make its maiden voyage in 2014, and Anthem of the Seas, scheduled to debut in 2015.

 

Quantum ships span 16 decks, encompass 167,800 gross registered tons, carry 4,180 guests at double occupancy and feature 2,090 staterooms. Quantum cruising will dazzle guests with never-before onboard features, such as a skydiving experience, a thrilling adventure that transports guests more than 300 feet in the air on a breathtaking journey; cutting-edge transformative venues including the largest indoor sports and entertainment complex at sea with bumper cars, roller skating and more; and the cruise line's largest and most advanced staterooms. These new, larger staterooms enable innovation in design, storage and comfort, including the industry's first interior staterooms with Virtual Balconies, ensuring that every stateroom on Quantum of the Seas will have a view. To see the reveal film that introduces at-sea "firsts" to debut on the Quantum Class, please go to http://*******.com/pyhh6ff.

 

"We are excited to construct these tremendous ships to meet guests' demand for an exceptional cruise experience," said Bernard Meyer, managing partner Meyer Werft. Meyer continued, "And we are honored by our long partnership with Royal Caribbean, a true innovator in modern ship design."

 

Including today's contract and existing ship orders, projected capital expenditures for 2013, 2014, 2015 and 2016 are $700 million, $1.2 billion, $1.2 billion and $2.1 billion, respectively. Including Quantum III, the company's capacity growth rate from 2012 to 2017 will be approximately 4% per annum.

 

Royal Caribbean Cruises Ltd. (NYSE, OSE: RCL) is a global cruise vacation company that owns Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises and CDF Croisieres de France, as well as TUI Cruises through a 50 percent joint venture. Together, these six brands operate a combined total of 41 ships with six under contract. They operate diverse itineraries around the world that call on approximately 460 destinations on all seven continents. Additional information can be found on http://www.royalcaribbean.com, http://www.celebritycruises.com, http://www.pullmantur.es, http://www.azamaraclubcruises.com, http://www.cdfcroisieresdefrance.com or http://www.rclinvestor.com.

 

Certain statements in this release relating to, among other things, our future performance constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding expected financial results for the second quarter and full year 2013 and the costs and yields expected in 2013 and other future periods. Words such as "anticipate," "believe," "could," "estimate," "expect," "goal," "intend," "may," "plan," "project," "seek," "should," "will," and similar expressions are intended to identify these forward-looking statements. Forward-looking statements reflect management's current expectations, are inherently uncertain and are subject to risks, uncertainties and other factors, which could cause our actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Examples of these risks, uncertainties and other factors include, but are not limited to the following: the impact of the economic environment on the demand for cruises, the impact of the economic environment on our ability to generate cash flows from operations or obtain new borrowings from the credit or capital markets in amounts sufficient to satisfy our capital expenditures, debt repayments and other financing needs, the uncertainties of conducting business internationally and expanding into new markets, changes in operating and financing costs, vacation industry competition and changes in industry capacity and overcapacity, emergency ship repairs, including the related lost revenue, the impact of ship delivery delays, ship cancellations or ship construction price increases, financial difficulties encountered by shipyards or their subcontractors and incidents or adverse publicity concerning the cruise vacation industry and the unavailability or cost of air service.

 

More information about factors that could affect our operating results is included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, copies of which may be obtained by visiting our Investor Relations web site at http://www.rclinvestor.com or the SEC's web site at http://www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to us on the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

[London-Calling]

I believe STX France will deliver Oasis 3 at around the same time as Meyer Werft, Germany deliver Quantum 3: Mid-2016.

 

That's a lot of extra tonnage for RCI to manage in 2016!

[GPoll189]

Over the next 2 1/2 years starting with the addition of Quantum of the Seas Royal Caribbean will be adding 3 Quantum classes which carry about 4,100 passenger in double occupancy and adding another Oasis ship which averages 6,200 passengers that is an increase of 18,800 passengers

[Ourusualbeach]

it's been almost 6 hours and there hasn't been anyone posting yet that they have heard from a reliable source (bartender) where the new ship will be home ported.

[Brian131489]

it's been almost 6 hours and there hasn't been anyone posting yet that they have heard from a reliable source (bartender) where the new ship will be home ported.

 

Oh I'm sure Nostradamus will be showing his head soon !!! They will be docked in his back yard

[JAMESCC]

I don't care where it goes, I got what I wanted with the first QOTS, its gonna be right here in NJ with me where it belongs. FL can have both of the other ships and the new Oasis, I got what I wanted.

[RCI_FADM_76]

I be willing to bet that they financed it with all the deposits they received when the Quantum bookings opened up...:D

[BrianAlt]

I be willing to bet that they financed it with all the deposits they received when the Quantum bookings opened up...:D

 

Nice! :D

 

This is a really good sign. I guess they're very happy with the design.

[swim13]

This only means a lot of rooms have been booked since they first opened bookings a few days ago! And I bet we can expect a ship or two to be taken out of service for RCI such as the Majesty and or a Vision class ship.

[bencruzN]

it's been almost 6 hours and there hasn't been anyone posting yet that they have heard from a reliable source (bartender) where the new ship will be home ported.

 

I heard from the bartender's cousin Q3 will be in California :D

 

I wish!!

[mairem17]

This only means a lot of rooms have been booked since they first opened bookings a few days ago! And I bet we can expect a ship or two to be taken out of service for RCI such as the Majesty and or a Vision class ship.

 

I think that the Majesty will be the only one to go. The Vision class ships are not that old and may be kept around for awhile more. After all Royal just spent millions revitalizing the whole class, not even mentioning the money they spent lengthening Enchantment. Also experts predict that by the year 2020, Royal Caribbean will surpass Carnival and become the largest cruise line. The only way they can do this is by adding on more tonnage and capacity.

[hollon]

do you think the New Oasis ship will have anything extra or exactly like the Allure and Oasis?

[GPoll189]

Hollon,

 

I believe the new Oasis sisters while have somethings that make them different than their older sisters, however most of the things will be the same. They know they have a vessel that many people love, so why change it. Of course they will be more technology advanced then their sisters and probably cleaner to run, but most likely they will be more like their sisters than different.

 

About the names of the remaining Quantum class and Oasis class ships. These four remaining ships will be given one of the four names that have been trademarked by Royal Caribbean.

 

Because an O is already been used for an Oasis class ship, I believe Ovation of the Seas will be a Quantum class ship. In addition probably each of the two classes will get one of the "P" names. This is to prevent confusion between the ships. However, this is my opinion.

[Eng23]

Oh I'm sure Nostradamus will be showing his head soon !!! They will be docked in his back yard

I dunno about that. I think we might have scared him away on the other thread with actual facts instead of his insider information predictions that were all wrong....;)

[Brian131489]

Lol !!

[shipfriend_max]

I think when RCI gets a new ship they eill also offer new itineraries.

Maybe Anthem comes to Europe in 2015?? Would be great!!:)

 

Could it be that she replaces Liberty on the 7-nighter from Barcelona??

[UCF_Knight]

I think that the Majesty will be the only one to go. The Vision class ships are not that old and may be kept around for awhile more. After all Royal just spent millions revitalizing the whole class, not even mentioning the money they spent lengthening Enchantment. Also experts predict that by the year 2020, Royal Caribbean will surpass Carnival and become the largest cruise line. The only way they can do this is by adding on more tonnage and capacity.

 

Recent revitalizations are not a good indicator of RCI's plans for any particular ship in the future. They usually like to keep all ships updated with drydock renovations every 5 years or so, even if they don't plan to keep the ship around. Just because they enhance a ship now doesn't mean it won't be leaving the fleet in a few years.

 

For instance, Sovereign of the Seas went through a $30 million enhancement in 2004 which included adding 62 balconies onto cabins (on a ship which had none), completely gutting and rebuilding the Windjammer including the addition of a large new forward area, adding various bars and restaurants, and renovating pretty much the entire rest of the ship. 4 years later she was removed from the RCI fleet (at the ripe old age of 21).

 

Empress of the Seas also went through extensive renovations in 2004 including adding specialty restaurants. She was also removed from the RCI fleet in 2008 (at 18 years old).

 

Legend of the Seas is the oldest Vision class ship, having come out in 1995. She was recently renovated, and I would not be shocked if that is the last renovation she receives before being removed from the RCI fleet. Given past history, you can almost guarantee that Legend of the Seas will not be sailing under the Royal Caribbean banner by 2020 when she would be 25 years old.

 

Royal Caribbean has retired 8 former ships in its history. Those ships were almost all less than 22 years old at the time of retirement. The only ones older than 22 at time of retirement were the first 3 ships in the fleet (which were retired in the 1990s at 27, 24, and 26 years old). All ships since then have been retired by the time they were 22. All 6 Vision class ships will be 22 or older by 2020. I would expect to see most of them either retired or on the way out the door by then.