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Carnival reports $781 million first quarter net loss

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 20 March 2020 20 March 2020

Carnival Corporation & plc, the world’s largest cruise shipping group, has reported a deep loss for the first quarter of its financial year and it said a full year loss appears likely.

Net loss amounted to $781 million in US GAAP terms for the three months to 28 February compared to a profit of $336 million in the same period year earlier. Revenues rose by $100 million to $4.8 billion.

“First quarter 2020 net loss includes $932 million of goodwill and ship impairment charges, reduced by net gains on ship sales,” the company said in a statement.

“The impact of COVID-19 on the first quarter 2020 net loss is approximately $0.23 per share, which includes cancelled voyages and other voyage disruptions, and excludes the impairment charges described above. Other previously disclosed voyage disruptions, noted during the Corporation’s December earnings conference call, also impacted first quarter 2020 results by approximately $0.12 per share,” Carnival said.

Carnival Corporation offers cruise ships as temporary hospitals

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 19 March 2020 19 March 2020

Carnival Corporation offers details on its initiative to convert cruise ships to temporary hospitals for non-COVID-19 patients.

Following up on President Donald J. Trump's surprise announcement at a press conference today, Carnival Corporation has offered more details about its initiative to convert cruise ships for Americans needing medical care that's not related to coronavirus, otherwise known as COVID-19.

The company today announced that select cruise ships from the company's global cruise line brands, including Carnival Cruise Line, Holland America Line, Princess Cruises and P&O Cruises Australia, will be made available to communities for use as temporary hospitals to help address the escalating impacts of the COVID-19 pandemic on healthcare systems around the world.

With the continued spread of COVID-19 expected to exert added pressure on land-based healthcare facilities, including a possible shortage of hospital beds, Carnival Corporation and its brands are calling on governments and health authorities to consider using cruise ships as temporary healthcare facilities to treat non-COVID-19 patients, freeing up additional space and expanding capacity in land-based hospitals to treat cases of COVID-19. As part of the offer, interested parties will be asked to cover only the essential costs of the ship's operations while in port.

Governments or health authorities with interest can contact Monica Puello by email at This email address is being protected from spambots. You need JavaScript enabled to view it. or by phone at (305) 406-8656.

If needed, cruise ships are capable of being quickly provisioned to serve as hospitals with up to 1,000 hospital rooms that can treat patients suffering from less critical, non-COVID-19 conditions. These temporary cruise ship hospital rooms can be quickly converted to install and connect remote patient monitoring devices over the ship's high-speed network – providing cardiac, respiratory, oxygen saturation and video monitoring capabilities. The rooms also have bathroom facilities, private balconies with access to sun and fresh air, as well as isolation capabilities, as needed.

Additionally, cruise ships being used as temporary hospital facilities to treat non-COVID-19 patients would have the ability to provide up to seven intensive care units (ICUs) in the ship's medical center equipped with central cardiac monitoring, ventilators and other key medical devices and capabilities. Similar to land-based health facilities, cruise ships can also house multiple medical functions in disparate locations by using different decks on the ship to separate each required medical area.

The temporary hospital cruise ships would be berthed at a pier near the community in need and operated by the ship's crew, with all maritime operations, food and beverage, and cleaning services provided by crew members on the ship. Medical services would be provided by the government entity or hospital responsible for fighting the spread of COVID-19 within that community.

Carnival Corporation to provide ships to tackle the Coronavirus

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 19 March 2020 19 March 2020

At a press conference today, President Donald J. Trump, providing an update on America's coronavirus, or Covid-19 outbreak, announced that Carnival Corporation's Micky Arison has agreed to provide cruise ships to New York, Los Angeles, and San Francisco, among other cities, if the need is warranted.

This is a breaking story and we will provide updates. Stay tuned.

Meyer Turku plans lay offs – reports

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 18 March 2020 18 March 2020

Meyer Turku, the Finnish cruise ship builder, has started talks with representatives of its personnel about lay offs, Finnish media reports say.

The company employs 2,200 people and the talks concern the entire staff, the reports say. Some of them suggest the lay offs would last for 90 days.

CruiseBusiness.com understands from an employee of the company that lay offs are being planned, but has been unable to obtain a comment from the company.

The move would come against the backdrop of the coronavirus pandemic, which has seriously affected the cruise industry.

Earlier this week, Carnival Corporation & plc that is a customer of the yard said in a statement: “The Corporation is taking additional actions to improve its liquidity, including capital expenditure and expense reductions, and pursuing additional financing.”

Royal Caribbean Cruises Ltd (RCCL), another of Meyer Turku’s major customers, said on 10 March: The company is pursuing additional actions to improve its liquidity by reducing capital expenditures, operating expenses and taking other actions to improve liquidity by at least a further $1.7 billion in 2020.

The next delivery from Meyer Turku will be Carnival Mardi Gras of Carnival group’s Carnival Cruise Line unit.

Meyer Turku orderbook and current delivery times

Ship Gross tons Operator Delivery due

Carnival Mardi Gras 184,000 Carnival Cruise Line Apr 2020

Costa Toscana 182,700 Costa Crociere Oct 2021

Carnival 2 184,000 Carnival Cruise Line Apr 2022

Icon of the Seas 200,000 Royal Caribbean Int. 2022

Mein Schiff 7 111,500 TUI Cruises 2023

Icon 2 200,000 Royal Caribbean Int. 2024

Icon 3 200,000 Royal Caribbean Int. 2025

-Source: Shippax Info, December 2019

Carnival Corporation & plc forecasts full financial year 2020 net loss

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 17 March 2020 17 March 2020

The coronavirus epidemic is having a material effect on the business of Carnival Corporation & plc, the world’s largest cruise shipping company, and it forecasts a net loss for the financial year to 30 November as a result, it said in a statement.

Carnival has implemented a temporary pause of its global fleet cruise operations across all brands, which each brand has separately announced the duration of its pause.

“Significant events affecting travel, including COVID-19, typically have an impact on booking patterns, with the full extent of the impact generally determined by the length of time the event influences travel decisions,” the company said.

“The Corporation believes the ongoing effects of COVID-19 on its operations and global bookings will have a material negative impact on its financial results and liquidity.”

“The Corporation is taking additional actions to improve its liquidity, including capital expenditure and expense reductions, and pursuing additional financing. Given the uncertainly of the situation, the Corporation is currently unable to provide an earnings forecast, however we expect results of operations for the fiscal year ending November 30, 2020 to result in a net loss,” Carnival said.

In the financial year to 30 November 2019, the group achieved a net income of $2.99 billion on revenues of $20.83 billion. It had 104 ships in service at the close of this financial.