News

Meyer Turku plans lay offs – reports

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 18 March 2020 18 March 2020

Meyer Turku, the Finnish cruise ship builder, has started talks with representatives of its personnel about lay offs, Finnish media reports say.

The company employs 2,200 people and the talks concern the entire staff, the reports say. Some of them suggest the lay offs would last for 90 days.

CruiseBusiness.com understands from an employee of the company that lay offs are being planned, but has been unable to obtain a comment from the company.

The move would come against the backdrop of the coronavirus pandemic, which has seriously affected the cruise industry.

Earlier this week, Carnival Corporation & plc that is a customer of the yard said in a statement: “The Corporation is taking additional actions to improve its liquidity, including capital expenditure and expense reductions, and pursuing additional financing.”

Royal Caribbean Cruises Ltd (RCCL), another of Meyer Turku’s major customers, said on 10 March: The company is pursuing additional actions to improve its liquidity by reducing capital expenditures, operating expenses and taking other actions to improve liquidity by at least a further $1.7 billion in 2020.

The next delivery from Meyer Turku will be Carnival Mardi Gras of Carnival group’s Carnival Cruise Line unit.

Meyer Turku orderbook and current delivery times

Ship Gross tons Operator Delivery due

Carnival Mardi Gras 184,000 Carnival Cruise Line Apr 2020

Costa Toscana 182,700 Costa Crociere Oct 2021

Carnival 2 184,000 Carnival Cruise Line Apr 2022

Icon of the Seas 200,000 Royal Caribbean Int. 2022

Mein Schiff 7 111,500 TUI Cruises 2023

Icon 2 200,000 Royal Caribbean Int. 2024

Icon 3 200,000 Royal Caribbean Int. 2025

-Source: Shippax Info, December 2019

Carnival Corporation & plc forecasts full financial year 2020 net loss

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 17 March 2020 17 March 2020

The coronavirus epidemic is having a material effect on the business of Carnival Corporation & plc, the world’s largest cruise shipping company, and it forecasts a net loss for the financial year to 30 November as a result, it said in a statement.

Carnival has implemented a temporary pause of its global fleet cruise operations across all brands, which each brand has separately announced the duration of its pause.

“Significant events affecting travel, including COVID-19, typically have an impact on booking patterns, with the full extent of the impact generally determined by the length of time the event influences travel decisions,” the company said.

“The Corporation believes the ongoing effects of COVID-19 on its operations and global bookings will have a material negative impact on its financial results and liquidity.”

“The Corporation is taking additional actions to improve its liquidity, including capital expenditure and expense reductions, and pursuing additional financing. Given the uncertainly of the situation, the Corporation is currently unable to provide an earnings forecast, however we expect results of operations for the fiscal year ending November 30, 2020 to result in a net loss,” Carnival said.

In the financial year to 30 November 2019, the group achieved a net income of $2.99 billion on revenues of $20.83 billion. It had 104 ships in service at the close of this financial.

Carnival group fully draws down $3 billion revolving credit facility

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 17 March 2020 17 March 2020

Carnival Corporation & plc, the world’s largest cruise shipping group, said it had provided a notice to lenders in its multi currency revolving credit facility that it would borrow approximately $3 billion under the agreement for a period of six months. “As of this borrowing, Carnival Corporation will have fully drawn down the Facility Agreement,” the company said in a statement

The group had in August 2019 become a became party to an amended and restated five-year - with two one-year extension options- $1.7 billion, €1.0 billion and £150 million multi-currency revolving credit agreement with a syndicate of financial institutions.

“The Corporation borrowed under the Facility Agreement in order to increase its cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the COVID-19 outbreak. The proceeds from the Facility Agreement borrowings will be available to be used for working capital, general corporate or other purposes<’ the company said.