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Fuel derivative loses shave Carnival’s second quarter net profit to $379 million

Carnival Corporation & plc, the world’s largest cruise shipping company, has reported a fall in second quarter net profit, mainly on losses on fuel derivatives, while operating profit and revenues both increased.

The company made a net profit of $379 million in three months to the end of May compared to $605 million in the same period a year earlier. Operating profit increased to $500 million from $478 million and revenues increased to $3.95 billion from $3.71 billion.

Losses on fuel derivatives amounted to $53 million in the review period, while a year earlier they had produced a gain of $171 million.

Earnings per share came to $0.52 compared to $0.31 in three months to 31 May last year and against the company’s own forecast at its first quarter interim report of adjusted earnings per share in the range of $0.43 to $0.47.

Arnold Donald group president and CEO said in a statement:, “Strong execution drove significant operational improvements, which more than offset the substantial drag from fuel and currency, leading to another second quarter adjusted earnings record.”

“It was reinforcing to see over five percent improvement in cruise ticket prices, affirming our efforts to increase demand by building positive word of mouth through the delivery of exceptional guest experiences as well as our innovative marketing and public relations programmes,” he stated.