American cruise operator Royal Caribbean missed Q4 earnings estimates and warned that it may not be profitable in 2022 as was earlier expected. Revenues came in at $982.2mn, up massively vs. Q4 2020’s $34.1mn but below FactSet estimates of $1.04bn. Net loss was a tad lower at $1.36bn vs. $1.37bn in Q4 2020. Adjusted loss per share stood at $4.78, wider compared to FactSet’s consensus of $3.92. MarketWatch reported that this was the company’s sixth straight quarter of revenue misses and third straight quarter of wider-than-expected losses. For the full year 2021, it reported a net loss of $5.3bn vs. $5.8bn in 2020. Royal Caribbean managed to operate at 85% capacity by the end of 2021, and guided to operate at 95% capacity in Q1 2022 despite the Omicron impact. The company had liquidity of $3.5bn as of 2021-end, plus $1bn from a bond offering in the first week of January. Against this, it has $2.3bn of debt maturities and $270-275mn of interest expenses in 2022.
Royal Caribbean’s 5.5% 2028s traded 1.6 points lower to 97 to yield 6.09%.
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