Carnival Corporation & plc, the world’s largest cruise shipping group, has reported a fall in both second quarter and first half net profit due to higher fuel costs and adverse foreign exchange movements, which more than offset higher revenues.
Group net profit fell to $451 million in three months to 31 May from $564 million in the same period last year. Operating profit fell to $515 million from $559 million, but revenues increased to $4.84 billion from $4.36 billion, boosted by a bigger fleet.
In the first six months of the group’s financial year, net oprofit contracted to $797 million from $955 million, while operating profit shrunk to $902 million from $978 million. Revenues grew to $9.51 billion from $8.59 billion.
The group’s fuel bills increased to $423 million in the second quarter from $373 million year on and to $804 million from $731 million in the first six months of its financial year compared to the same period a year earlier. “Changes in fuel prices and currency exchange rates decreased earnings by $0.09 per share,” the company said.
President and Chief Executive Officer Arnold Donald said in a statement: "Second quarter earnings included revenue growth from higher capacity and improved onboard spending, more than offset by a drag from fuel and currency compared to the prior year. Second quarter adjusted earnings were better than March guidance by $0.08 per share substantially due to the timing of expenses between quarters."
Gross revenue yields (revenue per available lower berth day or "ALBD") increased 5.6%. In constant currency, net revenue yields increased 0.6%, better than March guidance of approximately flat.
Gross cruise costs including fuel per ALBD increased 9.6%. In constant currency, net cruise costs excluding fuel per ALBD decreased 1.3%, better than March guidance of up approximately 1.0%, substantially due to the timing of expenses between quarters.
