MIAMI, Dec. 27, 2012 /PRNewswire/ -- Royal Caribbean Cruises Ltd. (NYSE, OSE: RCL) announced today that it has executed a contract with STX France to construct a third Oasis-class vessel for delivery in mid-2016. This order is consistent with the plan announced by the company in October to build a sister-ship to the very successful Oasis of the Seas and Allure of the Seas.

"The Oasis of the Seas and Allure of the Seas have fundamentally transformed the cruise experience for our guests," said Richard D. Fain, chairman and chief executive officer of Royal Caribbean Cruises Ltd. "These ships have consistently generated outstanding guest satisfaction ratings and continue to produce superior financial results. We are thrilled to be adding a sister to this extraordinary class of vessels at a compelling price. Being back building in France just adds to the pleasure."

"STX France is proud to partner with Royal Caribbean again and continue our decades-long relationship by building the third Oasis-class ship," said Laurent Castaing, chief executive officer of STX France. "Royal Caribbean has always been an important part of our shipyard's success, and we are delighted to add this highly innovative and spectacular ship to the list of vessels we have built together."

The newbuild contract includes the transfer of Pullmantur's Atlantic Star as part of the consideration. Additionally, the contract is subject to satisfaction of financing and other conditions. STX France has also provided the company with a one-year option for the mid-year 2018 delivery of a fourth Oasis-class vessel at similar pricing.

Including today's contract and existing ship orders, projected capital expenditures for 2012, 2013, 2014, 2015 and 2016 are $1.3 billion, $700 million, $1.2 billion, $1.2 billion and $1.3 billion, respectively. The company's annualized capacity growth rate from 2012 to 2016 remains at a historically low rate of 3.5%.

Oasis of the Seas and Allure of the Seas are the largest and most revolutionary cruise ships in the world. Architectural marvels at sea, they span 16 decks, encompass 225,282 gross registered tons, carrying 5,400 guests at double occupancy, and feature 2,700 staterooms. The ships sail weekly from their home port of Port Everglades in Fort Lauderdale, Florida.

Oasis of the Seas and Allure of the Seas debuted in November 2009 and November 2010 respectively, introducing a range of unique industry "firsts" and engineering marvels including a neighborhood concept – seven themed areas providing guests with the opportunity to seek out relevant experiences based on their personal style, preference or mood. Within these seven neighborhoods – Central Park, Boardwalk, the Royal Promenade, Pool and Sports Zone, Vitality at Sea Spa and Fitness Center, Entertainment Place and Youth Zone – are extraordinary elements such as the first park at sea, a thrilling zip line that races diagonally nine-decks above an open-air atrium, an original handcrafted carousel, 28 multilevel urban-style loft suites boasting floor-to-ceiling windows, an aquatic amphitheater – called the AquaTheater that serves as a pool by day and a dazzling ocean front theater by night; and an array of epicurean innovations that allow for new culinary experiences each day of a guest's cruise vacation.

"As the cruise line that revolutionized the industry with the FlowRider surf simulator, ice-skating rinks, cantilevered whirlpools and rock climbing walls, we are eager to add this third award winning Oasis-class ship to our brand portfolio. This addition will allow us to showcase our legacy of innovation and imagination to even more guests around the world," said Adam Goldstein, president and chief executive officer of Royal Caribbean International.

With the success of the Oasis-class ships, Royal Caribbean International is currently undergoing a fleetwide revitalization program to bring the latest innovations and the highest guest-rated programs from Oasis of the Seas and Allure of the Seas to the cruise line's ships across the fleet.

Royal Caribbean Cruises Ltd. (NYSE,OSE: RCL) is a global cruise vacation company that owns Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises and CDF Croisieres de France, as well as TUI Cruises through a 50 percent joint venture. Together, these six brands operate a combined total of 41 ships with four under construction. They operate diverse itineraries around the world that call on approximately 460 destinations on all seven continents. Additional information can be found on www.royalcaribbean.com, www.celebritycruises.com, www.pullmantur.es, www.azamaraclubcruises.com, www.cdfcroisieresdefrance.com or www.rclinvestor.com.

SOURCE Royal Caribbean Cruises Ltd.

The Finnish export credit agency (Finnvera) was very reluctant to provide the credit. This has been all over the news recently. Maybe the French government was more eager to provide it. Perhaps it didn't want to mess up another order, like it did with the Viking Ocean order, which ended up with Fincantieri. And this way, the order stays within the STX Group of companies.

STX Turku has work until 2015 on the two TUI ships. If they manage to score another order in 2013, they should be OK.

Goverment was willing to give innovation subsidies over 20m euros.

How ever this was not enough. The yard wanted to have extra 50m€ loan from government (without giving bails). This is something government was not willing to do as STX is in bad financial shape.

Finnish goverment wanted to play according the EU rules. Very unlikely that France did the same. It is still not know what is the exact price of the ship?

This is REALLY bad for STX Turku. They had the knowledge and advantage of building these ships.
The order included also an option for another ship.

There is not much new orders at market. Finnish yards have not build Carnival Corp. ships for ages.
They lost past RCCL orders. Looks bad

[ 12-28-2012: Message edited by: Peter P ]

Including Atlantic Star is a convenience for all possibly, a way around any EU scrapping laws and getting her off the Marseilles scene.

For STX Turku this would have been 3rd similar ship.
For Saint-Nazaire its totally new project. All the plans are in Turku. Naturally everything is for sale.

Just wondering how can french build these ship with lower costs. I know its not just costs but hidden subsidies and credit issues too.

[ 12-28-2012: Message edited by: Peter P ]

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Originally posted by Frosty 4:
I can see the new ship staying in the Carribean.The New Panama Canal should be finished by easily 2016. Oots and Aots will then deploy to Asia and Europe. IMHO??? Having 3 ships of this class in the Carribean seems foolish ??
BTW ??? who built the first 2 ships???? I remember they came under the big bridge in the Baltic. Finland???
If that's true why the switch except for $$$$$???
Frosty 4

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The first two Oasis class vessels were built in Turku Finland by STX Finland.

Even after the new Panama Canal opens the Oasis Class will still be to big to use it so they will remain stuck in the Caribbean unless they sail all the way around South America. On paper they are just wide enough to fit but the way that the ship's upper decks and lifeboats over hand make her too wide to fit through even the new locks. Project Sunshine will be Royal Caribbean's Panama Canal class.

quote:

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Originally posted by Mattsudds:
Having Atlantic Star in the equation might well have helped tip the balance towards STX Francs if Finland weren't able to include her.

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According to YLE (Finnish national broadcaster) that deal would had also been part of STX Turku deal.