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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.

Carnival group fully draws down $3 billion revolving credit facility

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

Carnival Corporation & plc, the world’s largest cruise shipping group, said it had provided a notice to lenders in its multi currency revolving credit facility that it would borrow approximately $3 billion under the agreement for a period of six months. “As of this borrowing, Carnival Corporation will have fully drawn down the Facility Agreement,” the company said in a statement

The group had in August 2019 become a became party to an amended and restated five-year - with two one-year extension options- $1.7 billion, €1.0 billion and £150 million multi-currency revolving credit agreement with a syndicate of financial institutions.

“The Corporation borrowed under the Facility Agreement in order to increase its cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the COVID-19 outbreak. The proceeds from the Facility Agreement borrowings will be available to be used for working capital, general corporate or other purposes<’ the company said.

TUI suspend cruise operations, axes financial year 2020 guidance

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 16 March 2020 16 March 2020

TUI AG, the Hannover based tour operator, has decided to suspend its cruise and the bulk of its operations and withdraw its guidance for the financial year to 30 September 2020.

“In this rapidly changing environment the safety and welfare of our guests and employees worldwide remains of paramount importance and thus TUI Group has decided, in line with government guidelines, to suspend the vast majority of all travel operations until further notice, including package travel, cruises and hotel operations,” the company said in a statement, referring to the coronavirus outbreak.

The group’s cruise operations comprise a 50% stake in TUI Cruises and Hapag-Lloyd Kreuzfahrten in Germany and fully owned Marella Cruises in the UK.

“In light of this situation, the Executive Board has decided today to withdraw the Financial Year 2020 guidance as communicated on 11 February 2020. Furthermore the Executive Board also refrains from issuing a new guidance for the Financial Year 2020 under the current circumstances,” TUI said.