A $414 million non-cash write down of Pullmantur put Royal Caribbean Cruises in the red for Q4 and shrank its 2012 earnings to a meager $18 million on revenues of $7.7 billion.

According to Royal, its 2012 earnings per share would have been $1.97 with the write-down, which reduced EPS to $0.08, compared to $2.77 for 2011. Q4 EPS would have been $0.10 instead of a loss of $2.80.

According to Chairman and CEO Richard Fain, Pullmantur has struggled hard against the headwinds in Spain and is now embarking on a new strategy of diversification, reducing its dependence on the Spanish market.

Thus, when the Monarch of the Seas is transferred from the Royal Caribbean International brand to Pullmantur this spring, she will be based in the Southern Caribbean year-round, sourcing passengers from South America.

Brian Rice, executive vice president and CFO, noted the continued deterioration of the Spanish economy and austerity measures impacting consumer spending.