P&O Princess Cruises PLC Results for the Second Quarter Ended 30 June 2001.Business Editors LONDON--(BUSINESS WIRE)--July 26, 2001 P&O Princess Cruises Princess Cruises is an American cruise line, based out of Santa Clarita, California, that operates cruise ships also shares the same building with Cunard Line headquarters. It is one of the many cruise lines operated by the Carnival Corporation. (NYSE NYSE See: New York Stock Exchange :POC (Proof Of Concept) See PoC exploit. POC - Point Of Contact ) Key points for the quarter -- Earnings per share/ADS of 12.9c/$0.52, an increase of 7% over Q2 2000 -- Pre-tax profit increased by 6% before a one-off relocation cost of $7 million -- Passenger cruise days increased by 6%, including 19% growth in Europe and Australia -- Like-for-like net revenue yields 3% lower than Q2 2000, as forecast in our previous trading update -- Unit cost reductions of 5%, giving an average reduction for the year to date of 3%, ahead of our annual 2% target -- Successful introduction of Golden Princess and launch of a new premium destination brand, A'ROSA, in Germany Outlook for the remainder of 2001 -- Pricing environment remains competitive in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , whilst trading conditions for our businesses in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and
Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. remain positive -- Pace of bookings in line with 2000 -- Overall like-for-like yield reduction for the year forecast at 3% -- Continued focus on cost efficiency -- Our expectations for 2001 full year earnings remain within the range of current market forecasts Peter Ratcliffe Ratcliff or Ratcliffe may refer to a place or a person. Places in the United Kingdom:
"We are pleased to report increased earnings per share this quarter, notwithstanding lower yields due to the competitive trading conditions in North America, and the absorption absorption [Lat.,=sucking from], taking of molecules of one substance directly into another substance. It is contrasted with adsorption, in which the molecules adhere only to the surface of the second substance. of one-off (1) One at a time. CD-ROM recorders (CD-R drives) are commonly called one-off machines because they write one CD-ROM at a time. (2) Only once. Software that is written to solve a specific problem only one time is sometimes called a one-off. relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. costs. We successfully grew the business, increasing passenger carryings by 6%, reduced our unit costs, and benefited from a lower tax rate. We see this pattern continuing, and expect that cost reductions and the lower tax rate will allow us to achieve increased earnings for the year as a whole, despite the lower yields in North America. We continue to make progress across the business towards our strategic objectives. Golden Princess had a highly successful introduction to the fleet in May. Pacific Princess
Pacific Princess, (formerly R Three) , for which we have entered into a contract for sale, will leave the fleet in 2002. With this and the other planned changes One of the foundational definitions in the field of organizational development (aka OD) is planned change: “Organization Development is an effort planned, organization-wide, and managed from the top, to increase organization effectiveness and health through planned we are making, we believe that we will have one of the most competitive fleets in the industry in terms of both revenue generation and cost structure. We have just launched our new premium brand, A'ROSA, in the German market. We have taken further steps to reduce our overall cost structure, including the recent announcement of our plan to consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. the management of the P&O Cruises division into Southampton Southampton, county district (1991 pop. 194,400), Hampshire, S England, at the head of Southampton Water. Southampton is Britain's second largest port. The London-Southampton railway, finished in 1840, and the double tide of the harbor made Southampton an important . Whilst the industry is likely to continue to see competitive pricing conditions as it absorbs the current new build programs of the major operators, we are confident that our strategic moves and cost efficiency program will enable us to compete effectively both in North America and internationally. The prospects for growth remain strong and P&O Princess Cruises, with our leading positions in three of the world's largest vacation VACATION. That period of time between the end of one term and beginning of another. During vacation, rules and orders are made in such cases as are urgent, by a judge at his chambers. markets, is well placed to exploit that growth, delivering superior returns to shareholders as we do so." For further information contact: P&O Princess Cruises plc Gwyn Hughes, Executive Vice President, +44 20 7805 1218 Corporate Development and Communications 07801 039722 Caroline Keppel-Palmer, Investor Relations +44 20 7805 1214 and Corporate Communications Manager 07730 732015 Gavin Anderson & Company Byron Ousey +44 20 7496 1446 Gavin Anderson & Company Louisa Winnett +1 212/515-1944 Website www.poprincesscruises.com Analyst presentation We are holding a simultaneous conference call and presentation for analysts at 2.00pm BST (convention) BST - British Summer Time. The name for daylight-saving time in the UK GMT time zone. . An audio webcast of the presentation will be available on our website at www.poprincesscruises.com About P&O Princess Cruises plc P&O Princess Cruises plc is one of the largest international cruise companies with some of the strongest cruising brand names: Princess Cruises in North America; P&O Cruises in the UK and in Australia; AIDA (language) AIDA - 1. A functional dialect of Dictionary APL by M. Gfeller. ["APL Arrays and Their Editor", M. Gfeller, SIGPLAN Notices 21(6):18-27 (June 1986) and SIGAPL Conf Proc]. 2. and A'ROSA in Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). and Swan Hellenic Swan Hellenic is a British cruise line specialising in tours of historical or cultural interest aimed at the upper end of the cruise market. It began in the 1950s when the Swan travel agency, operated by two brothers by the name of Swan, was asked to organise a tour for also in the UK. It is a leading provider of cruises to Alaska Alaska (əlă`skə), largest in area of the United States but third smallest (exceeding only Vermont and Wyoming) in population, occupying the northwest extremity of the North American continent, separated from the coterminous United States , the Caribbean, Europe, the Panama Canal Panama Canal, waterway across the Isthmus of Panama, connecting the Atlantic (by way of the Caribbean Sea) and Pacific oceans, built by the United States (1904–14) on territory leased from the republic of Panama. and other Exotic exotic not native, not indigenous. destinations. The current complement of 18 ships offering 27,370 berths is set to grow in the next three years with 8 new ships on order. P&O Princess Cruises has approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 19,000 employees worldwide and in 2000 generated revenue of over $2 billion ((pound)1.4 billion). Headquartered in London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. , P&O Princess Cruises' ordinary shares are quoted on the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. and as ADSs on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. (under the symbol "POC"). Statements in this report on financials relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc matters that are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performances or achievements of P&O Princess Cruises to be materially different from any future results, performances or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Such factors include general economic and business conditions, changes in cruise industry capacity and competition, changes in tax and other laws and regulations affecting P&O Princess Cruises and other factors, which are described in further detail in P&O Princess Cruises' filings with the Securities and Exchange Commission and the UK Listing Authority.
SUMMARISED GROUP PROFIT AND LOSS ACCOUNT FOR THE THREE MONTHS
AND SIX MONTHS ENDED 30 JUNE 2001
Three months to Six months to
30 June 30 June
2001 2000 2001 2000
(Unaudited)(Unaudited)(Unaudited)(Audited)
US$ million
Turnover (gross revenue) 647.6 642.0 1,189.7 1,161.0
-----------------------------------
Direct operating costs (407.4) (405.0) (795.4) (749.6)
Selling and administrative
expenses (92.5) (91.4) (177.1) (171.9)
Depreciation and amortisation (36.5) (37.3) (73.3) (71.1)
-----------------------------------
(536.4) (533.7) (1,045.8) (992.6)
------ ------- --------- -------
Total operating profit 111.2 108.3 143.9 168.4
Loss on disposal of ships (1.9) - (1.9) -
Profit on sale of businesses - 0.2 - 0.2
------ ------- --------- -------
Profit before interest 109.3 108.5 142.0 168.6
Net interest and similar items (15.5) (13.3) (29.3) (21.6)
------ ------- --------- -------
Profit before taxation 93.8 95.2 112.7 147.0
Taxation (4.7) (12.4) (5.6) (19.1)
------ ------- --------- -------
Profit after taxation 89.1 82.8 107.1 127.9
Equity minority interests (0.1) (0.4) (0.1) (0.8)
------ ------- --------- -------
Profit for the period 89.0 82.4 107.0 127.1
------ ------- --------- -------
Basic earnings per share 12.9c 12.1c 15.4c 18.6c
Basic earnings per ADS $0.52 $0.48 $0.62 $0.74
Dividend per share 3.0c - 6.0c -
Dividend per ADS $0.12 - $0.24 -
Weighted average number of shares
in issue (in millions) 692.6 681.6 692.6 681.6
Three months to Six months to
30 June 30 June
2001 2000 2001 2000
Operating statistics
--------------------
Passenger cruise days (thousands)
North America 1,539 1,532 2,935 2,968
Europe and Australia 819 686 1,635 1,243
------ ------- --------- -------
Total 2,358 2,218 4,570 4,211
------ ------- --------- -------
Occupancy
North America 101.3% 100.1% 102.1% 100.0%
Europe and Australia 99.3% 97.3% 97.4% 96.7%
------ ------- --------- -------
Total 100.6% 99.2% 100.4% 99.0%
------ ------- --------- -------
Like-for-like change (3)% (4)%
in net revenue yields
Commentary on second quarter results Passenger cruise days in the quarter were 6% higher than in the same quarter in 2000. In North America, Princess' passenger cruise days were largely unchanged with the introduction of Golden Princess part way through the quarter offsetting the effect of the transfer of Pacific Sky (formerly Sky Princess Sky Princess can refer to:
Aurora (ərôr`ə, ô–). 1 City (1990 pop. 222,103), Adams and Arapahoe counties, N central Colo., a growing suburb on the east side of Denver; inc. 1903. (introduced part way through the second quarter of 2000) for the full quarter for P&O Cruises in the UK and the expansion in Australia through the replacement of Fair Princess with the larger Pacific Sky. As forecast at the time of our last quarterly results, net revenue yields, including on board revenue, were 3% lower on a like-for-like basis than for the second quarter in 2000. This reduction was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk principally to Princess which experienced competitive trading conditions, particularly in the Alaska trade where this year has seen a significant increase in capacity for the industry. Gross revenues for the quarter increased by 1%, reflecting the increase in passenger carryings, the lower net revenue yields and adverse exchange rates. Underlying unit costs, after eliminating the effect of currency movements, were around 5% lower than in the second quarter of 2000. Unit cost savings were achieved in both operating costs operating costs npl → gastos mpl operacionales and overheads. Included in costs is a $7 million charge relating to the costs of relocating the offices of both Princess in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , and P&O Cruises in the UK. In the latter case we have recently announced that we will be consolidating the management of the UK division in Southampton, closing our office in London. This follows on from the transfer of the customer service centre to Southampton which we previously announced. These two office relocations in the UK and the US will reduce our cost structure, and put us in a position to grow without significantly increasing premises premises n. 1) in real estate, land and the improvements on it, a building, store, shop, apartment, or other designated structure. The exact premises may be important in determining if an outbuilding (shed, cabana, detached garage) is insured or whether a person costs, further reducing unit costs. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the quarter was $111.2 million against $108.3 million last year. We recorded a loss of $1.9 million in respect of the disposal of Pacific Princess, for which we have recently entered into a contract for sale. She will be chartered back until she leaves the fleet in November November: see month. 2002. Interest costs increased due to the increase in borrowings following delivery of Golden Princess. The tax rate was 5%, against 13% last year, with deferred tax no longer being provided on the profits of P&O Cruises in the UK due to the planned entry into the tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. tax regime. After interest, tax and minority interests, profits were $89.0 million against $82.4 million in the second quarter of 2000. Earnings per share/ADS were 12.9c/$0.52 compared with 12.1c/$0.48 for 2000. The dividend for the quarter will be 3.0c per share, payable on 17 September September: see month. 2001 to shareholders on the register on 17 August 2001. Unless they have elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. otherwise, ordinary shareholders will receive their dividend in sterling, converted at the exchange rate on 31 August 2001. Elections to receive dividends in US dollars must be made by 23 August 2001. Holders of ADSs will receive their dividend of $0.12 per ADS in US dollars. Commentary on results for the year to date In the first half of 2001, passenger cruise days increased by 9% over those in the first half of 2000. Within this, Princess' passenger cruise days were largely unchanged with the introduction of Golden Princess in May 2001 offsetting the effect of the transfer of Sky Princess to Australia. Europe and Australia grew by 32% due to the inclusion of Aurora (introduced in April 2000) for P&O Cruises in the UK for the full half year, the acquisition of Seetours in April 2000 which added Arkona Arkona W. Slavic citadel-temple of the war-god Svantovit, built in the 9th–10th century AD and destroyed in 1168/69 by Christian Danes when they stormed the island of Rügen in the southwestern Baltic. to the German business, and the expansion in Australia, with the larger vessel Pacific Sky replacing Fair Princess. Net revenue yields, including on board revenue, were 4% lower than for the first half of 2000. Underlying unit costs, after eliminating the effect of currency movements, were 3% lower with continuing savings in operations costs and overheads. Operating profit for the first half was $143.9 million against $168.4 million in 2000. Princess' operating profits decreased to $111.2 million due to lower net revenue yields and with the comparison affected by the Millennium millennium [Lat.,=1,000 years], the period of 1,000 years in which, according to some schools of Christian eschatology, Christ will reign again gloriously on earth. Belief in the millennium, based on Rev. 20, has recurred in Christianity since the earliest times. benefit in 2000, offset by continued unit cost reductions. Europe and Australia's operating profits decreased to $32.7 million with increasing profits in the UK and Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. operations offset by the inclusion of the first quarter seasonal loss from Seetours (acquired in April 2000), the UK relocation costs charge and adverse exchange rate movements. The interest charge increased following the delivery of Golden Princess and the tax rate was 5% against 13% in 2000. After interest, tax and minority interests, profits were $107.0 million against $127.1 million in the first half of 2000. Earnings per share/ADS were 15.4c/$0.62 compared with 18.6c/$0.74 for 2000. 2001 outlook Bookings for Princess in the last three months have maintained a good pace, but with pricing remaining lower than for 2000, particularly for cruises in the Alaskan trade. The overall tone of business for our operations in the UK, Germany and Australia remains positive. Cruises for the third quarter are almost fully booked and we anticipate that the Group's net revenue yields for this quarter will be around 4% lower, on a like-for-like basis, compared with the third quarter of 2000. For the year as a whole, on the basis of current trends, we anticipate a reduction in Group net revenue yields on a like-for-like basis of 3%. We are achieving lower costs across various areas of the business, ahead of our 2% target reduction for the year, and the results for the second half of 2001 will benefit from this. Our expectation for full year 2001 earnings per share is unchanged and remains within the range of current market forecasts. Business developments During the quarter we renegotiated the options we have with Chantiers for two new ships. The options can now be exercised at any time up to July July: see month. 2002 and are for later deliveries, in the 2005/2006 period. We will continue to monitor demand for all our products with a view to balancing our future capacity increases with demand. We have recently entered into a contract for the sale of Pacific Princess. She is being chartered back until she leaves the fleet in November 2002. With Arkona and Victoria already scheduled to leave the fleet next year, we have now disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of all our pre- pre- word element [L.], before (in time or space). pre- pref. 1. Earlier; before; prior to: prenatal. 2. 1984 built ships. This latest change is a further step in making Princess' fleet one of the most competitive in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. industry. Next year Star Princess The Star Princess is a Princess Cruises cruise ship. The Star Princess is a sister ship of the Grand Princess and the Golden Princess. An earlier ship of the same name is now operating as the Ocean Village. , the first mega-ship in the industry to be positioned on the west coast, and Coral Princess The Coral Princess is a cruise ship owned and operatated by Princess Cruises line. The vessel, along with sister ship Island Princess, was launched in 2003. External Links
Earnings before interest and taxes (EBIT) divided by total assets. earning power 1. The earnings that an asset could produce under optimal conditions. For example, AT&T may currently be earning $2. of Princess' fleet, in terms of both ticket and on board revenue. For example, over the course of 2002 the proportion of cabins with balconies in the Princess fleet will increase from 39% to 48%. They will also improve the cost structure of the fleet, with the average vessel size increasing by 13% to over 2,000 berths. With significant increases in capacity expected for the industry as a whole next year, we anticipate a continuation of the competitive pricing conditions for the industry in North America. Nevertheless, we expect to be in a good position to counter this as a result of the improvements in the fleet's earning power and Princess' increase in capacity being limited to around 10% for 2002. Economic conditions will be a factor but with anticipated further progress on our cost reduction program, we believe we are well positioned to compete effectively in North America. At the same time as limiting our North America capacity growth, the transfer of ships to the UK and Germany enables us to reinforce re·in·force v. 1. To give more force or effectiveness to something; strengthen. 2. To reward an individual, especially an experimental subject, with a reinforcer subsequent to a desired response or performance. 3. our position in the fast growing European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. cruise industry. As a further step in this process, last week we launched our new premium, destination oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. product for the German cruise sector, A'ROSA. Operated as part of Seetours, our existing German business, and alongside our highly successful AIDA club product, A'ROSA will be aimed exclusively at the German-speaking adj. 1. able to communicate in the German language. Adj. 1. German-speaking - able to communicate in German communicatory, communicative - able or tending to communicate; "was a communicative person and quickly told all she knew"- W.M.Thackeray market. A'ROSA will offer relaxing vacations with an emphasis on "wellness" together with a wide range of dining and entertainment choices. The A'ROSA fleet will initially comprise one ocean going ship, A'ROSA BLU The A'Rosa Blu is a cruise ship, formerly known as the Crown Princess. It is owned by Princess Cruises, and was constructed in 1990. </noinclude> , and two river cruise River cruise is a voyage up and down a river/rivers touching at a series of ports. River cruising is a form of traveling in the inlands waterways of the world. Unlike large ocean cruise liners, river cruise ships are usually smaller vessels, generally accommodating between 100 and vessels, A'ROSA DONNA and A'ROSA BELLA. Currently trading as Crown Princess within the Princess fleet, A'ROSA BLU will be refitted to meet German tastes and will, we believe, be the largest ship dedicated to the German cruise sector. The marketing campaign will start in September this year and the maiden voyages Noun 1. maiden voyage - the first voyage of its kind; "in 1912 the ocean liner Titanic sank on its maiden voyage" ocean trip, voyage - an act of traveling by water will be in summer 2002. With the new build AIDAvita AIDAvita is a cruise ship; the second ship in AIDA Cruises' fleet, targeting those who prefer an active or healthy lifestyle but would enjoy a luxury cruise. Data
P&O Cruises, Princess and Swan Hellenic continue to perform well in the United Kingdom. Plans are well advanced for the transfer of Ocean Princess (as Oceana Not to be confused with Oceania. Oceana may refer to:
We recently announced the appointment of Phil PHIL Philosophy Phil Philippine PHIL Philippians PHIL Philadelphia, PA, USA PHIL Public Health Image Library (US CDC) Kleweno as President of Princess Cruises in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Phil was previously a senior partner of the management-consulting firm Bain n. 1. A bath; a bagnio. & Co. and has been closely involved in the strategic and operational development of Princess over the last five years. We believe that Phil's wide business experience and organizational and leadership skills will greatly benefit the company as we move forward with our growth plans in the years ahead.
Summarised Group Balance Sheet
As at As at As at
30 Jun 30 Jun 31 Dec
2001 2000 2000
(Unaudited) (Audited) (Audited)
US$ million
Goodwill 109.7 31.2 121.0
Ships 3,547.4 3,284.9 3,206.5
Ships under construction 368.4 273.3 401.5
Properties and other fixed assets 241.3 204.0 219.6
Investments 10.6 10.5 10.9
Stocks 83.4 88.3 79.8
Debtors 298.2 305.9 318.6
------- ------- -------
4,659.0 4,198.1 4,357.9
Net borrowings (1,303.7) (836.2) (967.0)
Other creditors and provisions (870.4) (1,019.9) (927.1)
Equity minority interests (0.3) (8.3) (0.2)
------- ------- -------
2,484.6 2,333.7 2,463.6
------- ------- -------
Equity shareholders' funds 2,484.6 2,333.7 2,463.6
------- ------- -------
Debt/capital ratio 34.4% 26.4% 28.2%
------- ------- -------
SUMMARISED GROUP CASH FLOW STATEMENT
Three months to Six months to
30 June 30 June
2001 2000 2001 2000
(Unaudited)(Unaudited)(Unaudited)(Audited)
US$ million
Net cash inflow from operating
activities 276.1 284.4 398.2 419.1
Returns on investments and
servicing of finance
(31.4) (17.1) (42.8) (26.6)
Taxation (42.8) (5.8) (156.0) (9.3)
Capital expenditure and financial
investment
Purchase of ships (421.1) (213.0) (441.1) (607.4)
Purchase of other fixed assets (17.8) (20.6) (36.0) (31.8)
Disposal of ships 1.4 1.5 16.6 2.9
------ ------- --------- -------
Net cash outflow for capital
expenditure and financial
investment (437.5) (232.1) (460.5) (636.3)
------ ------- --------- -------
Purchase of subsidiaries - (12.2) - (14.9)
Equity dividends paid (103.5) - (103.5) -
------ ------- --------- -------
Net cash outflow before financing (339.1) 17.2 (364.6) (268.0)
Net cash inflow from financing 340.4 (68.1) 345.2 259.5
------ ------- ------- -------
Increase/(decrease) in cash in
the period 1.3 (50.9) (19.4) (8.5)
------ ------- --------- -------
Movement in net borrowings:
Net cash outflow before financing (339.1) 17.2 (364.6) (268.0)
Net investment by P&O - 35.2 - 29.3
Amortisation of bond issue costs (0.3) - (0.7) -
Exchange movements in borrowings 3.3 37.6 28.6 34.6
------ ------- --------- -------
Movement in net borrowings (336.1) 90.0 (336.7) (204.1)
------ ------- --------- -------
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
Six months to 30 June
2001 2000
(Unaudited) (Audited)
US$ million
Profit for the period 107.0 127.1
Exchange movements (43.8) (11.5)
------- -------
Total recognised gains and losses 63.2 115.6
Dividends (42.4) -
New shares issued 0.2 -
Net investment by P&O - 29.3
------- -------
Net increase to shareholders' funds 21.0 144.9
Shareholders' funds at beginning of period 2,463.6 2,188.8
------- -------
Shareholders' funds at end of period 2,484.6 2,333.7
------- -------
NOTES
1 Segmental analysis
Six months to 30 June
2001 2000
Turnover (Unaudited) (Audited)
US$million
North America 847.0 881.0
Europe and Australia 342.7 280.0
------- -------
1,189.7 1,161.0
------- -------
Six months to 30 June
2001 2000
Operating profit (Unaudited) (Audited)
US$million
North America 111.2 132.3
Europe and Australia 32.7 36.1
------- -------
143.9 168.4
------- -------
As at As at As at
30 Jun 30 Jun 31 Dec
2001 2000 2000
Net operating assets (Unaudited) (Audited) (Audited)
US$ million
North America 2,479.6 2,131.7 2,200.0
Europe and Australia 883.8 931.5 977.1
------- ------- -------
3,363.4 3,063.2 3,177.1
------- ------- -------
Net operating assets exclude goodwill and ships under construction.
2 Taxation
Six months to 30 June
2001 2000
(Unaudited) (Audited)
US$million
United Kingdom 95.7 (2.4)
Overseas (101.3) (16.7)
------- -------
(5.6) (19.1)
------- -------
3 The figures for the year to 31 December 2000 are extracted from
the statutory accounts for that year, which have been delivered to
the registrar of companies, and on which the auditors gave an
unqualified report, without any statement under section 237 (2) or
(3) of the Companies Act 1985. The 2001 interim results will be
posted to stockholders on 8 August 2001 and will be available for
inspection from that date at the registered office of the Company
at 77 New Oxford Street, London WC1A 1PP.
Capacity increases
The estimated passenger cruise days for 2001 and 2002 by quarter
and in total are shown below. This information takes account of the
newbuild programme, ship transfers and the company's current
projections for ship withdrawals.
Passenger cruise North UK Germany Australia Total
days (millions) America
Quarter 1 2001 1.40 0.55 0.15 0.11 2.21
Quarter 2 2001 1.54 0.56 0.15 0.11 2.36
Quarter 3 2001 1.68 0.57 0.16 0.10 2.51
Quarter 4 2001 1.61 0.55 0.16 0.11 2.43
-----------------------------------------
Total 2001 6.23 2.23 0.62 0.43 9.51
-----------------------------------------
Quarter 1 2002 1.76 0.56 0.13 0.11 2.56
Quarter 2 2002 1.75 0.54 0.20 0.11 2.60
Quarter 3 2002 1.74 0.57 0.37 0.09 2.77
Quarter 4 2002 1.65 0.64 0.36 0.11 2.76
-----------------------------------------
Total 2002 6.90 2.31 1.06 0.42 10.69
-----------------------------------------
The planned capacity deployment within North America is as follows:
Passenger cruise Q1 Q2 Q3 Q4 Total
days (millions)
2001
Alaska - 0.45 0.80 - 1.25
Caribbean 0.78 0.36 0.24 0.78 2.16
Europe - 0.31 0.44 0.03 0.78
Mexico - 0.04 - 0.18 0.22
Panama Canal 0.31 0.21 0.07 0.24 0.83
Exotics and others 0.31 0.17 0.13 0.38 0.99
-----------------------------------------
Total 1.40 1.54 1.68 1.61 6.23
-----------------------------------------
2002
Alaska - 0.53 0.85 - 1.38
Caribbean 0.98 0.44 0.23 0.67 2.32
Europe 0.01 0.33 0.41 0.04 0.79
Mexico 0.04 0.11 0.04 0.24 0.43
Panama Canal 0.29 0.22 0.04 0.25 0.80
Exotics and others 0.44 0.12 0.17 0.45 1.18
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Total 1.76 1.75 1.74 1.65 6.90
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Definitions Passenger cruise days (pcds) means the number of passengers who could be carried on board (defined by lower berth Noun 1. lower berth - the lower of two berths lower built in bed, bunk, berth - a bed on a ship or train; usually in tiers capacity) multiplied mul·ti·ply 1 v. mul·ti·plied, mul·ti·ply·ing, mul·ti·plies v.tr. 1. To increase the amount, number, or degree of. 2. Mathematics To perform multiplication on. by the available cruise days. Cruises that begin in one accounting period and end in another have their pcds apportioned ap·por·tion tr.v. ap·por·tioned, ap·por·tion·ing, ap·por·tions To divide and assign according to a plan; allot: "The tendency persists to apportion blame as suits the circumstances" accordingly; the financial results are treated similarly. Occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy is calculated by dividing the achieved pcds by the offered pcds. Since the former includes upper berths Noun 1. upper berth - the higher of two berths upper built in bed, bunk, berth - a bed on a ship or train; usually in tiers whereas the latter includes only lower berths, the occupancy can exceed 100%. Net revenue is defined as gross revenue (turnover) from the sale of cruises and on board revenue less the cost of sales (primarily travel agent commissions) and the flight component of a fly-cruise. Like-for-like is defined as movements in net revenue yields after adjusting for changes in exchange rates and changes in the mix of cruises. For the year as whole like-for-like net revenue yield changes figures include adjustments for the effects in Q1 2000 of higher priced cruises over the Millennium. |
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