Meyer Turku Shipyard signs contract with Royal Caribbean Cruises for fourth ship in Icon class

Meyer Turku Shipyard and Royal Caribbean Cruises have signed a contract for a fourth ship in the Icon class. The agreement also includes options for constructing a fifth and sixth ship of the same class. The newly ordered vessel is expected to be delivered in 2027. Currently, Meyer Turku is working on the construction of the second and third Icon-class mega cruise ships. The confirmed contract is estimated to create 13,000 person-years of employment, a development that Prime Minister Petteri Orpo described as great news for Finland.

However, the latest ships built in Turku have been sold at a loss. These mega ships have turned unprofitable due to construction agreements that were negotiated years ago, followed by rising costs. While Meyer Turku has managed to negotiate some cost increases in these agreements, it has only been partially successful.

In 2023, the company reported losses of 106 million euros, following a loss of 19 million euros in 2022. During 2023, its cash reserves dwindled from 170 million euros to 41 million euros. Nevertheless, the company has receivables amounting to tens of millions of euros.

Meyer Turku has previously indicated that the next cruise ship is expected to be profitable once the sales price and construction costs are more accurately established. In the company’s financial results from last year, it projected a positive outcome for this year. Stay tuned for updates.