Carnival Corporation & plc says that Costa Concordia will be out of service perhaps into the next financial year of the group that will start on 1 December 2012 and loss of revenue from grounding of the vessel on Friday may reach $95 million.
“A damage assessment review of the vessel is currently being undertaken to determine how long it will be out of service. The vessel is expected to be out of service for the remainder of our current fiscal year if not longer. For the fiscal year ending November 30, the impact to 2012 earnings for loss of use is expected to be approximately $85-$95 million or $0.11-$0.12 per share. In addition, the company anticipates other costs to the business that are not possible to determine at this time,” the company said in a statement.
“The company has insurance coverage for damage to the vessel with a deductible of approximately $30 million as well as insurance for third party personal injury liability subject to an additional deductible of approximately $10 million for this incident. The company self-insures for loss of use of the vessel,” Carnival said.
