News: Stuck in port, Royal Caribbean posts $1 billion quarterly loss.
(Reuters) – The Royal Caribbean Group reported a $ 1 billion net loss on Monday for the fourth consecutive year as the cruise operator continued to be affected by a coronavirus-triggered stop to travel.
Cruise companies have been bolstering cash reserves by issuing new stocks, selling assets, or borrowing billions of dollars in debt over the past few months as the virus outbreak virtually paralyzed the industry.
With the ships idling, the company’s total revenue for the quarter fell from $ 2.52 billion a year ago to $ 34.1 million. According to Refinitiv IBES data, analysts had expected sales of 35.6 million US dollars.
At the end of December, Royal Caribbean had around $ 4.4 billion in liquidity, up from $ 3.7 billion at the end of the third quarter after a $ 1 billion stock offering was initiated in the fourth quarter .
The operator of the Oasis of the Seas and Symphony of the Seas cruises posted a net loss of $ 1.37 billion, or $ 6.09 per share, for the quarter ended December 31, compared to earnings of $ 273.1 million $ 1.30 per share share, a year earlier.
Reporting by Praveen Paramasivam in Bengaluru; Adaptation by Shounak Dasgupta
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