MIAMI - Royal Caribbean Group (NYSE: NYSE:RCL) has signed an agreement with the French shipbuilder Chantiers de l'Atlantique for the construction of a seventh Oasis Class cruise ship, set to join the Royal Caribbean International fleet in 2028. This move comes as the company prepares for the summer debut of its latest vessel, Utopia of the Seas, and follows the recent introduction of three new ships across its brands.
The Oasis Class series, initiated with the launch of Oasis of the Seas in 2009, is known for its innovative design and onboard experiences. The new ship is expected to continue the tradition of its predecessors, featuring a combination of groundbreaking, evolutionary, and signature experiences for guests.
Jason Liberty, president and CEO of Royal Caribbean Group, expressed the company's enthusiasm for the upcoming ship and its commitment to delivering the ultimate vacation experience. Michael Bayley, president and CEO of Royal Caribbean International, highlighted the significance of the partnership with Chantiers de l'Atlantique in realizing the vision for the seventh Oasis Class vessel.
Laurent Castaing, general manager of Chantiers de l'Atlantique, remarked on the confidence Royal Caribbean Group has in their partnership, which has historically produced some of the most innovative ships at sea.
The agreement is subject to financing, which Royal Caribbean Group anticipates finalizing later this year.
Royal Caribbean Group operates a global fleet of 65 ships and owns three award-winning cruise brands: Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. It also has a 50% ownership in a joint venture that operates TUI Cruises and Hapag-Lloyd Cruises. Including the newly announced vessel, the company has eight ships on order as of December 31, 2023.
The information on this development is based on a press release statement.
InvestingPro Insights
As Royal Caribbean Group (NYSE: RCL) continues its expansion with the order of a seventh Oasis Class cruise ship, the company's financial health and market performance remain a key interest to investors. According to InvestingPro, the company's Market Cap stands at a robust 29.91B USD, reflecting significant investor confidence. With a Price to Earnings (P/E) Ratio of 17.51 and an adjusted P/E ratio for the last twelve months as of Q4 2023 at 17.57, RCL is trading at a low P/E ratio relative to its near-term earnings growth, which may indicate that the stock is potentially undervalued given its earnings trajectory.
InvestingPro Tips suggest that analysts are optimistic about Royal Caribbean's prospects, with five analysts having revised their earnings upwards for the upcoming period. This is an encouraging sign that the company's financial performance could exceed expectations. Additionally, RCL has demonstrated a high return over the last year with a 53.97% one-year price total return, showcasing its strong recovery and investor enthusiasm in the post-pandemic era.
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With the next earnings date set for May 2, 2024, potential investors and current shareholders will be keen to see how the company's strategic investments, such as the new Oasis Class ship, will impact its financial outcomes and market valuation. Royal Caribbean's commitment to innovation and guest experience, paired with positive financial indicators, could set the stage for continued success in the cruise industry.
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