Wells Fargo thinks RCI will order new ship in early 2011

[Cruising89143]

Here is Royal Caribbean current fleet

Sovereign class - 2 ships left (oldest in the fleet)

Vision class - 6 ships

Radiance class - 4 ships

Voyager class - 5 ships

Freedom class - 3 ships

Oasis class - 2 ships

 

Seems unlikely to me that Oasis class would only have 2 ships. My guess is next ship would be another Freedom class or another Oasis class.

 

Fain has stated that there would not be another Oasis class. Also, there is a poster on another cruise board that works for STX Europe who was involved in the building of both the Freedom and Oasis class ships and he has stated that since the Freedom class was designed and built, there have been many improvements in technology and safety that would require the Freedom class to be redesigned.

[Cruising89143]

I no longer work for RCI but I work for a company that has direct contact with RCI executives and at the last meet and greet they announced to us all (this was less than four weeks ago) that there are no plans right now for any new ships. They are focusing on revitalizing old ships and do not even plan to begin planning until spring-summer 2012 with a late 2014 delivery at the earliest.

 

And you really think the executives are going to tell you or some TA what they have planned? LOL!!! Also, if you read again the original date mentioned in my first post was for a 2014 delivery. All of this is speculation and that was exactly what Wells Fargo was doing based on what they know about RCCL. No way can/will RCI allow their competition to build new vessels while they sit back and watch. My bet is on Wells Fargo being on target with their speculation but time will tell.

[marci22]

They must have some kind of money tree growing at the corporate offices that we don't know about.

[uksimonusa]

I no longer work for RCI but I work for a company that has direct contact with RCI executives and at the last meet and greet they announced to us all (this was less than four weeks ago) that there are no plans right now for any new ships. They are focusing on revitalizing old ships and do not even plan to begin planning until spring-summer 2012 with a late 2014 delivery at the earliest.

 

!

 

2 1/2 years from the start of planning to delivery is a very short time line. I would imagine a 2014 delivery would be on the drawing board now.

[harryfat1]

They must have some kind of money tree growing at the corporate offices that we don't know about.

 

Like all capital intensive businesses operations, they borrowed some of the money to build the ships. Here is the cut and paste excerpt from their annual Form 10K that they file with the SEC on how they financed some of the new ship builds:

 

During 2009, we took delivery of Celebrity Equinox. To finance the purchase, we drew in full $524.5 million of an unsecured

term loan which is 95% guaranteed by Hermes, the official export credit agency of Germany. The loan has a 12-year life with semiannual

amortization, and bears interest at LIBOR plus a margin of 50 basis points, currently approximately 1.47%

 

During 2009, we took delivery of Oasis of the Seas. To finance the purchase, we drew in full $840.0 million and €€ 159.4 million

of an unsecured term loan which is 95% guaranteed by Finnvera, the official export credit agency of Finland. The loan amortizes over

12 years.

 

During 2009, we arranged commitments for unsecured financing in the amount of $1.1 billion or up to 80% of the contract price

of Allure of the Seas. The facility will be 95% guaranteed by Finnvera, the official export credit agency of Finland and will be funded

at delivery.

 

Within the same 10K report, here’s this comment:

 

To ensure adequate liquidity, we have discontinued our quarterly dividend commencing in the fourth quarter of 2008,

we have tactically evaluated our non-shipbuild capital expenditures and will consider further newbuild orders as market conditions

warrant; however, if a newbuild order were to be placed in the near term, a new delivery would not arrive before 2013.

 

So the Well Fargo comment based on Fain’s own conference call comment of 2013 being pushed to 2014 new build date isn’t that much of a stretch. Even if they announced they are ordering a new ship on January 1, 2011, it’ll take them couple years into 2013 before they get the new ship ready for maiden voyage.

[bionicman97]

So at this point we know they are go to build:

 

1) A ship

2) With a name that ends in of the Seas

3) That will be built someday

4) Before or after they finish revitalizing the other ships and that it will be

4) Between the size of the Sovereign Class and the Oasis Class.

5) And that several people, or no one, knows about it.

6) And that they are playing old recordings while putting us on hold just to mess with us

7) Because they don't want to fall behind the competition because

8) Their stock would drop to a $1 before they went bankrupt.

 

I just wanted to get things straight in my mind;)

[SherriZ366]

2014 is fairly far away and would give RCCL breathing room. I would think with no new ship being built, except for a ferry that will be started this summer, that STX Finland would be in a position to want to cut a good deal with RCCL. They had to lay off workers after Allure left (until they start building the ferry this summer but don't know if the workforce will be as big as that needed for Allure).

[SherriZ366]

And in 2009 Hendrix predicted RCI stock would go to $1.00 just before they went bankrupt.

 

She would not be the person I would look to for any cooperation from RCI as to information for tonight's MDR menu, let alone new ship build info.:p

I remember that prediction -- RCCL was around $5 at the time. It closed at $40.43 today and has been in that range for awhile.

[Bolphin]

So at this point we know they are go to build:

 

1) A ship

2) With a name that ends in of the Seas

3) That will be built someday

4) Before or after they finish revitalizing the other ships and that it will be

4) Between the size of the Sovereign Class and the Oasis Class.

5) And that several people, or no one, knows about it.

6) And that they are playing old recordings while putting us on hold just to mess with us

7) Because they don't want to fall behind the competition because

8) Their stock would drop to a $1 before they went bankrupt.

 

I just wanted to get things straight in my mind;)

 

:D:D:D:D

 

Just what I was thinking.

[thelion]

And you really think the executives are going to tell you or some TA what they have planned? LOL!!! Also, if you read again the original date mentioned in my first post was for a 2014 delivery. All of this is speculation and that was exactly what Wells Fargo was doing based on what they know about RCCL. No way can/will RCI allow their competition to build new vessels while they sit back and watch. My bet is on Wells Fargo being on target with their speculation but time will tell.

 

Given our unique relationship and the nature of what my company does? Yes. They would tell us. They would have to.

 

Again, mark my words, the soonest a new ship will be ordered is 2012. Wont happen before then. They are revitalizing.

[harryfat1]

So at this point we know they are go to build:

 

1) A ship

2) With a name that ends in of the Seas

3) That will be built someday

4) Before or after they finish revitalizing the other ships and that it will be

4) Between the size of the Sovereign Class and the Oasis Class.

5) And that several people, or no one, knows about it.

6) And that they are playing old recordings while putting us on hold just to mess with us

7) Because they don't want to fall behind the competition because

8) Their stock would drop to a $1 before they went bankrupt.

 

I just wanted to get things straight in my mind;)

 

Yeap, I think you have the basics covered. Here are few details you may wish to add to your list relating to the ship itself:

 

1 – They will finance the ship cost with some undisclosed amount of debt

2 – The ship will likely be white in color

3 - Within the ship, it will have a buffet/MDR/specialty dining (and of course a kitchen), as well as pools/spas/theatre and bars

4- There will be numerous cabins of various types

5 –There will also be shopping and photo areas

6 – In theory, the ship will have engines/motors/power generators

7- Most likely they will staff it with a captain or two along with other crew members

 

Other can add to whatever else I am missing…

[bigque]

They already have that.

It's called Voyager class

 

LOL! I emant to say between Freedom & Oasis! :o

[Kokomo91165]

I would expect RCL to borrow from the success of the Solstice Class features and design - those ships are just stunning and are so efficient.

 

But, RCL would modify those designs to incorporate our favorite Freedom & Oasis Class features - the FlowRider, Loft Suites, cantilivered whirlpools, H2O zone, mini golf, rock wall, Diamond Lounge, Concierge Lounge, the Royal Promenade, multiple restaurants, etc.

 

Time will tell.

[koterry]

They must have some kind of money tree growing at the corporate offices that we don't know about.

Check RCCL stock price over the last year, that might help ..:)

[koterry]

So at this point we know they are go to build:

 

1) A ship

2) With a name that ends in of the Seas

3) That will be built someday

4) Before or after they finish revitalizing the other ships and that it will be

4) Between the size of the Sovereign Class and the Oasis Class.

5) And that several people, or no one, knows about it.

6) And that they are playing old recordings while putting us on hold just to mess with us

7) Because they don't want to fall behind the competition because

8) Their stock would drop to a $1 before they went bankrupt.

 

I just wanted to get things straight in my mind;)

Nice:)

[jleq]

http://travel.usatoday.com/cruises/post/2010/11/royal-caribbean-cruise-ship-order-allure-oasis/132359/1?csp=34travel

[stargate fan]

http://travel.usatoday.com/cruises/post/2010/11/royal-caribbean-cruise-ship-order-allure-oasis/132359/1?csp=34travel

 

On our Liberty of the Seas cruise last week, our captain, Captain Charles, told those of us at the C&A party that RCI will be ordering a new class of ship. It will be somewhere between Freedom and Voyager class. But nothing concrete is expected in the next two years.

[Poorplaya]

It be interesting to see if this is true, when something gets officially announced by RCCL. I think it would be great IMO. Why not add to something that is already so great.

[temple1]

It be interesting to see if this is true, when something gets officially announced by RCCL. I think it would be great IMO. Why not add to something that is already so great.

 

Probably the size. Oasis and Allure are too large for many of the ports. They are close to losing my business because of the lack of variety in ports.

[LBumb]

great news

[caribbeanboy]

Some day in the (near) future it will be true..

[SamFritz]

Last month, I was sitting on hold while making a cruise reservation. The RCI advertisement playing on the phone said "soon to be 7 ship classes." Maybe I'm missing something, but I think there are only 6 current ship classes.

 

I'm pretty sure they've been playing that "soon to be seven classes" on hold tape since I started sailing with Royal five years ago. Right now we've got: Sovreign Class, Vision Class, Radience Class, Voyager Class, Freedom Class and Oaisis Class (Is that what we're calling it?). So that's six. But when I first started sailling there was one other ship ship that they said was "in a class by itself" I never sailed it, and I don't remember its name. So at the time I think those were the six classes and Oasis was going to be the "soon to be seventh." Then they got rid of that other ship. so they're back to six.

 

Now, everybody, see if you can fill in all my blanks.:D

[SamFritz]

I'm pretty sure they've been playing that "soon to be seven classes" on hold tape since I started sailing with Royal five years ago. Right now we've got: Sovreign Class, Vision Class, Radience Class, Voyager Class, Freedom Class and Oaisis Class (Is that what we're calling it?). So that's six. But when I first started sailling there was one other ship ship that they said was "in a class by itself" I never sailed it, and I don't remember its name. So at the time I think those were the six classes and Oasis was going to be the "soon to be seventh." Then they got rid of that other ship. so they're back to six.

 

Now, everybody, see if you can fill in all my blanks.:D

 

So I jumped to the end of the thread and then read the second page, where all the answers lie. :o

 

It is an old tape, and the ship was the Empress. Hope I didn't cause anyone too much stress.

[ExploreroftheSeas92]

Happy Thanksgiving everyone. I'll be really excited if Royal Caribbean decides to order a new ship anytime soon for a 2014 delivery. Despite being a smaller ship than Oasis, the ship would probably be remarkable with some unique amentities and innovation. I did hear that Royal Caribbean is looking to add single cabins onto some ships like other lines have done, so if this ship is ordered this will be probably be implemented onboard. Of course, this is all speculation.

[Chuggiebug]

On my last cruise in October doing the Cruise Critic Meet & Mingle, the CD doing his little speech did confirm that there are plans for a new class of ships that will be between the Radiance class & the Freedom class of ships. He did not however provide a time table.

 

We were told the exact same thing on the Oasis in October.