Cruise major Royal Caribbean today set out the full impact of a major accident involving one of its flagship vessels, the full cost of which it intends to carry in 2019.
On 1 April, two construction cranes collapsed onto the 5,400-berth Oasis of the Seas (built 2009) while the vessel was undergoing routine maintenance at Grand Bahama Shipyard.
The ship has been at a European yard for the past month undergoing repairs as a result of the accident, which damaged both the vessel's deck and the dock. It will resume service 5 May.
The company lowered full-year earnings per share guidance range by $0.25 to $9.65 to $9.85 to account for revenue loss and repair costs related to the incident, which also hurt eight workers.
Royal Caribbean did not disclose further information regarding financial impact in today's first-quarter earnings release but its top accountant said costs would be kept within 2019.
"As it relates to the $0.25, all of that $0.25 will take place in 2019," chief financial officer Jason Liberty said during an earnings call this morning.
"There are some things as it relates to the yard that could potentially impact us into 2020 but for the most part this revenue loss, this APCD loss, will be things that we lose this year but gain back next year."
APCD stands for available passenger cruise days.
He said some vouchers for canceled trips may be redeemed in 2020 but the company should be able to absorb any costs related to those.
Royal Caribbean did not immediately return an email requesting specific cost information related to the accident, which is currently under investigation by the Bahamas Maritime Authority.
'Unusual event'
Chief executive Richard Fain acknowledged cancellation of three Oasis of the Seas cruises as a result of the incident but was grateful that none of the workers' injuries were serious.
"This is a very unusual event and not only have we never experienced anything like it, I've never heard of anyone else experiencing it either," he said during the earnings call.
