News

Carnival cuts 2019 earnings forecast on Continental Europe, Cuba, geopolitics

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 20 June 2019 20 June 2019

Carnival Corporation & plc, the Anglo-American cruise shipping group, has cut its earnings forecast for the financial year to 30 November 2019 on a host of factors.

The company expects full year 2019 adjusted earnings per share to be in the range of $4.25 to $4.35, compared to March guidance of $4.35 to $4.55 and 2018 adjusted earnings per share of $4.26, it said in a statement.

President and Chief Executive Officer Arnold Donald said in the statement:, "Recent booking trends have been impacted by ongoing geopolitical and macroeconomic headwinds affecting our Continental European brands. We continue to expect higher yields in our North America and Australia brands offset by lower yields in our Europe and Asia brands for the remainder of the year."

Voyage disruptions related to Carnival Vista are expected to have a financial impact of approximately $0.08 to $0.10 per share.

The U.S government's policy change on travel to Cuba has a financial impact of approximately $0.04 to $0.06 per share. While the company was able to quickly adjust its itineraries to provide guests with attractive alternative vacation experiences, the suddenness of the regulatory change to this high yielding destination has led to a near-term impact on revenue yields.

In addition, the company is adjusting its full year net revenue yield guidance by 50 basis points mainly due to lower ticket prices forecasted in the second half of the year, resulting primarily from ongoing headwinds faced by the company's Continental European brands.

At this time, cumulative advanced bookings for the remainder of the year are slightly ahead of the prior year at prices that are in line with the prior year on a comparable basis. Pricing on bookings taken since March have been running behind the prior year on lower booking volumes in part because the company had less inventory remaining for sale. Cumulative advanced bookings for the full year 2020 are well ahead at prices that are in line compared to 2019.

The decline in revenue yields is mostly offset by $0.02 per share impact from lower fuel consumption and a net favorable $0.08 per share impact from changes in fuel prices and currency exchange rates since the time of March guidance.

Based on current booking trends, the regulatory change and voyage disruptions, the company now expects full year 2019 constant currency net cruise revenues to be up approximately 4.5%, with capacity growth of approximately 4.5%.

Net revenue yields in constant currency are expected to be in line with the prior year compared to March guidance of up approximately 1.0%. Net revenue yields in constant currency are expected to be flat to down slightly for the third quarter and lower for the fourth quarter when compared to the prior year. The company now expects full year net cruise costs excluding fuel per ALBD in constant currency to be up approximately 0.7% compared to the prior year. The 0.2% increase compared to March guidance is due to the aforementioned voyage disruptions.

Donald commented: "Over the past five years we have demonstrated our ability to overcome multiple headwinds and deliver strong operational improvement. This year our growth has been hampered by a confluence of events, which we are focused on mitigating. Generating over $5 billion of cash flow and with a robust business model, our business is strong and we remain confident over time we will deliver double-digit earnings growth and growth in return on invested capital."

Carnival group’s interims weaken as cost rises outpaces revenue growth

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 20 June 2019 20 June 2019

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.

Knud E. Hansen unveils adventure sail ship concept

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 19 June 2019 19 June 2019

Knud E. Hansen has announced its latest design, a 110‐metre "Wind Cruise Vessel." This is a sail‐assisted cruise vessel that can accommodate up to 100 passengers and has a range of 6000 nautical miles. This design is aimed at the adventure‐cruise market and will appeal to passengers who prefer a more intimate cruise experience while visiting destinations that are inaccessible by larger ships.

By leveraging its vast experience in the design of small to medium sized expedition cruise vessels, Knud E. Hansen has produced a design that addresses a number of growing trends in the cruise industry. The higher end of the market prefers smaller ships where passengers can escape the crowds typically found on the large cruise lines. Furthermore, the modest length and shallow draft of this vessel allow it to anchor in small harbors, away from the throngs of tourists found in busier ports.

The design also appeals to the growing eco‐tourism segment that aims to travel the world while minimizing their carbon footprint. The combination of low‐sulphur diesel and wind power result in a vessel that exceeds the requirements for Emission Control Areas and all forthcoming IMO regulations. The vessel also includes a large battery bank to allow for zero emissions in port as well as specially protected areas.

The vessel features a modern rig designed by Detlev Loell Ingenieurbüro, GmbH. The rig is comprised of three free‐standing masts, each with a fully‐battened main sail with adjustable trailing‐edge flaps for optimizing lift. The total sail area, which includes a single head sail on the forward mast, is 1910 square metres. The sails are computer‐operated and are designed to provide peak performance, even in light winds.

The formidable rig design, combined with four diesel‐electric engines, will allow the vessel to cruise at 15 knots in most operating conditions. The twin‐screw arrangement and pair of tunnel thrusters forward allow for superior maneuverability in small ports and anchorages. Active fin stabilizers limit the vessel’s heel to 6 degrees in sail‐assisted mode, in order to ensure passenger comfort in typical operating conditions.

The accommodation decks include 46 passenger cabins and 2 deluxe cabins. All of the cabins are located outboard with ocean views, and many have private balconies. Located in the hull is a Sea Lounge with underwater windows for viewing marine life. On the second deck is a large tender garage with a capacity for multiple rigid inflatables, jet skis, diving gear and other recreational equipment, as well as ROV camera equipment for observation of underwater environments at a maximum depth of 3000 m. All can be launched via shell doors on either side.

The third deck features a sun deck astern with a swim platform for easy water access. Deck 4 includes a large restaurant with al fresco dining as well as a bar, library, and card room. Deck 5 includes a large bar/lounge aft surrounded by exterior deck space plus an observation area on the foredeck. The top deck features an open‐deck café and sun deck with lounge chairs.

This design has been developed in‐house, by the experienced staff of naval architects, marine engineers and designers at Knud E. Hansen as well as the sail experts at the Detlev Loell Ingenieurbüro.