Carnival Corporation & plc, the world’s largest cruise shipping company, has reported a rise in net profit for three months to 28 February to $352 million from $142 million in the same period a year earlier.
Earnings per share rose to $0.38 from $0.18, in accordance with US GAAP rules.
However, operating income fell to $368 million from $434 million and the bottom line was lifted by a reduction in non operating losses that narrowed to $14 million from $291 million. The main part of these came from fuel derivatives, which produced a $27 million profit compared to a loss of $236 million in the same period a year earlier.
President and Chief Executive Officer Arnold Donald said in a statement: “We are off to a good start delivering another quarter of operational improvement on top of a very strong first quarter last year. Our performance was driven by increased demand, particularly for our core Caribbean itineraries, leading to higher year-over-year ticket prices which enabled us to overcome the significant negative impact of both fuel and currency to exceed the high end of our guidance range.”
Key information for the first quarter 2017 compared to the prior year:
- Gross revenue yields (revenue per available lower berth day or “ALBD”) increased 0.1 percent. In constant currency, net revenue yields increased 3.8 percent for 1Q 2017, better than December guidance of up 1.5 to 2.5 percent.
- Gross cruise costs including fuel per ALBD increased 2.9 percent. In constant currency, net cruise costs excluding fuel per ALBD increased 3.2 percent, compared to December guidance of up 1.5 to 2.5 percent, due to the timing of certain expenses.
- Changes in fuel prices (including realized fuel derivatives) and currency exchange rates decreased earnings by $0.13 per share.