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Carnival reports $4.4 billion second quarter loss, including $2.0 billion impairment charge

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 18 June 2020 18 June 2020

Carnival Corporation & plc, the world’s listed cruise shipping group, has reported a net loss of $.4 billion for three months to 31 May, the second quarter of its financial year, with a non-cash impairment charge accounting for $2.0 billion of the loss, the company said in a statement.

“The company's guest cruise operations have been in a pause for a majority of the second quarter. In addition, the company is unable to definitively predict when it will return to normal operations. As a result, the company is currently unable to provide an earnings forecast,” Carnival said.

“The pause in guest operations is continuing to have material negative impacts on all aspects of the company's business. The longer the pause in guest operations continues the greater the impact on the company's liquidity and financial position. The company expects a net loss on both a U.S. GAAP and adjusted basis for the second half of 2020,” the company continued.

Although the impairment charge does not affect the group’s cash position, it does reduce shareholder’s equity and thus weakens the group’s balance sheet at a time when borrowing is increasing heavily to ensure the group has adequate liquidity to weather the current situation. “The company is working to arrange additional financial covenant waivers and additional debt holiday agreements deferring principal repayments of approximately $300 million through March 2021,” Carnival said.

The company said its cash burn rate in the was generally in line with the previously disclosed expectation. “Second quarter 2020 ended with $7.6 billion of available liquidity, and the company expects to further enhance future liquidity, including through refinancing scheduled debt maturities. In addition, the company has $8.8 billion of committed export credit facilities that are available to fund ship deliveries originally planned through 2023.,” Carnival said.

Total customer deposits balance at May 31, 2020 was $2.9 billion, including $475 million related to cruises during the second half of 202, the company noted.

Ponant announces comprehensive Covid-safe protocol

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 17 June 2020 17 June 2020

Ponant, the specialist in luxury small ship expeditions, has announced extensive new protocols to complement the already existing hygiene and sanitary measures in place. The multi-part order will include strict measures for guests, crew members and goods boarding the ships and enhanced onboard safety protocols.

To prepare for the resumption of its activity, Ponant is collaborating with the IHU (Institut Hospitalo-Universitaire) Méditerranée Infection of Marseilles, one of the World's leading centers in the field of infectious diseases, as well as with the Battalion of Marine Firemen of Marseilles. Ponant is also the only expedition line to apply to Bureau Veritas Safeguard status, a label which certifies the efficacy of the health protocols. The updated guidelines developed by Ponant is based on health standards that exceed international regulations.

In addition to strict cleaning procedures advised by the Centers for Disease Control (CDC) and World Health Organization (WHO), implementation of social distancing requirements and enhanced employee training, Ponant’s new measures include:

Pre-boarding

– Prior to boarding, all guests and crew members will have to present a signed doctor’s *medical form, complete a health questionnaire and undergo a health check and screening by the ship’s medical staff.
– All luggage will pass through a disinfecting zone by sanitizing mist or UV lamps.
– Surgical and cloth masks, disinfecting wipes and hand sanitizer bottles will be provided to passengers.

On-board experience

– 100 percent fresh air in staterooms, through non-recirculating air conditioning systems. Ventilated air will be renewed in the common areas at least five times per hour.
– Restaurant layouts have been redesigned and will only offer contactless a la carte dining options.
– Public spaces, such as the fitness room and theater will be capped at 50 percent occupancy.
– Hourly disinfecting of high-touch points, such as door handles and handrails, with EcoLab peroxide, which eliminates 100% of germs and bacteria
– Crew members are required to wear a mask or protective visor when in contact with guests. Guests will be asked to wear a mask in hallway corridors and will be recommended in public spaces.
– Thanks to large investments over several years, PONANT has some of the most complete and renowned onboard medical centers in the world of cruising. Each vessel is equipped with advanced hospital equipment, including mobile laboratory terminals that enable testing on site for infectious or tropical diseases. Advanced diagnostic equipment such as ultrasound, radiology and blood biological analysis is available fleet-wide, one doctor and one nurse are present on every sailing.
– All ships will have five vacant staterooms should guests need to isolate.

Shore excursions

– Zodiacs will be thoroughly disinfected after each stopover.
– Re-boarding after shore excursions will only be permitted after temperature check and disinfection procedures (individuals and personal belongings).

Viking Line is the first shipping company in the world to have its Covid-19 management verified by DNV GL

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 17 June 2020 17 June 2020

Viking Line became the first shipping company in the world to be verified by the accredited classification society Det Norske Veritas Germanischer Lloyd (DNV GL) in accordance with its My Care methodology. This verification, which covers all seven Viking Line vessels and operations in six terminals, affirms the company’s capability to manage and prevent infection risks, including Covid-19.

Viking Line has long carried out preventive work on contagion risks and infectious diseases. With DNV GL’s My Care verification, Viking Line’s infection risk prevention work during the pandemic is quality-assured and inspected by a third party. Viking Line is the first shipping company in the world to have this verification. The verification is for all of Viking Line’s vessels – Viking Grace, Amorella, Rosella, Viking Cinderella, Gabriella, Mariella and Viking XPRS – as well as its terminals in Stockholm, Kapellskär, Mariehamn, Turku, Tallinn and Helsinki. Passengers can read more about My Care – Infection Prevention Ready - online or by scanning a QR code to obtain further information about DNV GL’s assessment.

“The safety of our passengers and employees is always Viking Line’s top priority, and that is also the case during this pandemic. Everyone must be able to travel safely with us. We have long carried out infection risk preventive work and have now chosen to be assessed by a third party to quality-assure our work in conjunction with Covid-19. Our employees’ considerable efforts are impressive. We have achieved this thanks to their skills and engagement,” says Jan Hanses, president and CEO of Viking Line.

Viking Line’s ability to carry out service on the Baltic Sea is determined by decisions made by the authorities in Sweden, Finland and Estonia. A key component of the company’s safety work is health directives and infectious disease control manuals that are continuously used and updated in its operations. Because of the Covid-19 pandemic, this work has now been intensified and expanded. These measures begin in the terminals before boarding and end with passengers disembarking. Land-based employees and the vessels’ crews are kept informed on a continuous basis about guidelines in effect and what working methods and protective equipment are to be used for a given period.

“We would like to congratulate Viking Line on its My Care verification. The application of My Care creates trust since the focus is to prevent infectious diseases. It also demonstrates Viking Line’s strong engagement in further developing its HSE (Health, Security & Environment) processes. A third-party assessment provides assurance that the right measures have been taken to protect people, work transparently and increase the trust of passengers and other stakeholders,” says Luca Crisciotti, CEO, DNV GL- Business Assurance.

Leadership changes at Meyer's Papenburg and Turku shipyards

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 17 June 2020 17 June 2020

Jan Meyer, the CEO of Meyer Turku since 2014, will focus in the future on the role as Managing Director of Meyer Werft, Germany. At the same time Tim Meyer, managing director of Meyer Werft since 2016, will take over the position of the CEO at Meyer Turku. The change will take effect after the summer 2020.

“As a long term strategy of continuous exchange between the yards on all levels it was since the beginning planned to rotate the leadership at some suitable time in the future. The acute situation caused by the corona crisis will require and lead to major changes on all yards. As these changes and new structures will be implemented, it is now a good timing to carry out a family internal leadership switch between Jan and Tim”, says Bernard Meyer, chairman of Meyer Turku Oy and managing director of Meyer Werft.

It is also the goal of the switch to ensure continuous improvement by changing perspectives and defining the future structure of the Meyer production network. With the change, CEO Tim Meyer will move to Turku.

“The three yards in Papenburg, Turku and Warnemünde are already working closely together. We are learning from each other by implementing knowledge and experience of all locations. Already today, we are seeing the benefits of this cooperation. The exchange of people between the locations is essential and a success factor for the future. During my six years in Turku, my family and I have been very welcomed and supported here in Finland and we are very thankful for that. The time at the shipyard has been very intensive and personally inspiring, we have made many changes and investments, faced and made through many challenges together with our teams and partners. And still some further challenges are remaining – especially with this new situation. Through the cross-site collaboration, I will also in the future remain well connected and engaged with Turku.

We are now turning a new page at all our sites and need to seek also the opportunities in this crisis, implement many changes and at the same time strengthening our global functions, hence I am looking forward to push that change in Papenburg while staying involved with Turku through our cross-site collaboration”, CEO Jan Meyer states.

“I feel excited to get to work even more closely together with the shipbuilders and partners in Turku and of course also to get to know Finland and its people personally. We are encouraging an exchange between the yards on all levels and want to act as role models here”, CEO Tim Meyer says.

The Corona crisis hits the cruise industry and consequently also the shipyards very hard. That is why still substantial and partially painful adjustments are needed.

“Our shipyard went through many different times. We have to be always aware: If we take the right and bold steps, taking into account our changes, we will emerge stronger from this crisis than before”, adds Bernard Meyer.

Photo: Meyer Shipyard CEOs Thomas Weigend (from left), Jan Meyer, Bernard Meyer and Tim Meyer.