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).