News

Carnival increases forecast of fuel and forex bill to $ 0.19 per share

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 25 June 2018 25 June 2018

Carnival Corporation & plc, the Anglo-American cruise shipping group, has increased its forecast for the negative impact of fuel and foreign exchange costs for the rest of itsfinancial year.

Changes in fuel prices, including realised fuel derivatives and currency exchange rates are expected to decrease earnings by $0.19 per share compared to March guidance and $0.13 per share compared to the prior year, the company said.

“At this time, cumulative advanced bookings for the next three quarters are in line with the prior year at higher prices. Since March, booking volumes for the next three quarters have been running slightly ahead of prior year at prices that are in line with the prior year,” Carnival Corporation & plc said in a statement.

Arnold Donald, President and Chief Executive Officer said in the statement: "Strong operational results coupled with sustained strength in booking trends have mitigated the unfavorable $0.19 per share impact of fuel and currency moving against us since our last update.”

“We remain on track to deliver double digit return on invested capital in 2018. In addition, we have accelerated returns to shareholders through our recent dividend increase, with annual dividend distributions now over $1.4 billion and the reauthorisation of up to $1 billion in share repurchases." The company invested over $375 million in share repurchases since the beginning of the quarter, bringing the cumulative total of repurchases to date to over $3.7 billion since late 2015.

Based on current booking trends, the company now expects full year 2018 net revenue yields in constant currency to be up approximately 3.0 percent compared to the prior year, better than March guidance of up approximately 2.5 percent. The company still expects full year net cruise costs excluding fuel per ALBD in constant currency compared to the prior year to be up approximately 1.0 percent, in line with March guidance.

Carnival Corporation & plc interims firm as demand growth outpaced supply expansion

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 25 June 2018 25 June 2018

Carnival Corporation & plc, the world’s largest cruise shipping group, has reported a rise in both net and operating results for the second quarter and first half of its financial year on strong demand.

Group net profit rose to $561 million in three months to 31 May from $379 million in the same period year on, while operating result (EBIT) rose to $559 million from $500 million. Revenues rose to $4.36 billion from $3.95 billion.

In the first six months of its financial year, Carnival reported a rise in net profit to $961 million from $730 million and in EBIT to $978 million from $868 million. Revenues increased to $8.56 billion from $7.74 billion.

Arnold Donald, President and Chief Executive Officer said in a statement: "We delivered another strong quarter, again achieving record adjusted earnings on record revenues and exceeding the high end of our guidance range. Strong operational execution drove a 30% increase in adjusted earnings affirming the strength of our core strategy to create demand that outpaces measured capacity growth through outstanding guest experience efforts coupled with innovative actions to increase consideration for cruising across all global markets."

Adjusted net income excludes unrealized gains and losses on fuel derivatives and other net charges, totaling $72 million in net gains for the second quarter of 2018 and $1 million in net gains for the second quarter of 2017

Key information for the second quarter of 2018 compared to the second quarter of 2017:

Gross revenue yields (revenue per available lower berth day or "ALBD") increased 8.8 percent. In constant currency, net revenue yields increased 4.8 percent exceeding March guidance of up 2.5 to 3.5 percent.

Gross cruise costs including fuel per ALBD increased 8.2 percent. In constant currency, net cruise costs excluding fuel per ALBD increased 3.6 percent, better than March guidance of up 4.0 to 5.0 percent, principally due to the timing of expenses between quarters.

Changes in fuel prices (including realized fuel derivatives) and currency exchange rates increased earnings by $0.01 per share.

Highlights from the second quarter include the delivery of Carnival Cruise Line's 26th ship in its fleet, Carnival Horizon in March 2018. Additionally, in April 2018 Seabourn took delivery of the 5th all-suite ship in its ultra luxury fleet, Seabourn Ovation.

As a result of the strong guest response to sailings to Cuba, Carnival Cruise Line received approval for more than 20 additional calls, bringing the total to 40 calls to Cuba in 2019, departing from home-ports in Miami, Fort Lauderdale, Tampa, and Charleston. Also during the quarter, Carnival Cruise Line unveiled the largest, most technologically advanced operations center in the cruise industry. Carnival Corporation & plc increased its quarterly dividend from $0.45 to $0.50 and replenished the share repurchase program to $1 billion.

ABB to power new Virgin Voyages cruise ship fleet

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 25 June 2018 25 June 2018

The initial Virgin Voyages vessel, due for delivery in 2020, will be the first of a fleet of three innovative ships designed and built with environmental responsibility in mind.

Each of the 110,000 gross ton vessels will feature ABB’s Azipod propulsion, a gearless steerable propulsion system where the electric drive motor is in a submerged pod outside the ship hull. Azipod propulsion has become an industry standard in the cruise segment, with the proven ability to cut fuel consumption by up to 15 percent compared to traditional shaftline propulsion systems.

“Making Virgin Voyages environmentally sustainable is central to our vision and we are delighted ABB’s Azipod propulsion will help us achieve that goal. Combined with excellent maneuverability, it was a natural choice for our ships,” said Stuart Hawkins, Senior Vice President, Marine and Technical Operations for Virgin Voyages.

“Azipod® electric propulsion stands for innovation and efficiency like no other propulsion system and is fundamental to our vision of electric, digital and connected shipping,” said Peter Terwiesch, president ABB's Industrial Automation division. “Based on 25 years of experience and development, our Azipod propulsion technology continues to lead ships into the future of e-mobility, underpinning our commitment to a technology with superior performance, reliability, safety and environmental profile.”

Two Azipod XO units, with a combined propulsion power of 32 MW (43,000 HP) will propel each of the three ships. In addition to highest energy efficiency, Azipod XO units, where “X” stands for “next generation” and “O” for open water operation, provide high maneuverability and minimal noise for increased passenger comfort.

Each vessel will feature ABB’s complete electric power plant concept – a solution encompassing electricity generators, main switchboards, distribution transformers and a remote control system for maneuvering the Azipod units from the bridge. The combination of Azipod propulsion and ABB’s electric power plant concept makes it possible to configure all of the equipment for optimized performance, resulting in increased efficiency and lower emissions.

In line with ABB’s “Electric. Digital. Connected.” approach that envisages shipping’s digital and connected future, these vessels will have the capability to connect to the ABB AbilityTM Collaborative Operations Centers infrastructure. This network uses remote equipment monitoring and data analytics to enable predictive maintenance, planned interventions or even remote technical support.

The four-stroke engines powering the electricity generators – four per vessel – will be equipped with ABB’s TPL-C turbochargers, designed to handle demanding operations and consistently chosen for large cruise ships for their reliability and efficiency.

Each of the ships will be 278 meters long and 38 meters wide and accommodate more than 2,700 passengers and 1,150 crew. All three ships will be built at the Fincantieri shipyard in Genoa, Italy, with the second and third vessel deliveries scheduled for 2021 and 2022 respectively.

Since the first installation over 25 years ago, Azipod propulsion has saved approximately 700,000 tons of fuel while clocking up close to 15 million running hours at an impressive availability rate of 99.8 percent. In March 2018, Azipod propulsion secured its 100th contract for powering a cruise ship.

By being placed outside of the hull, the Azipod propulsion system frees up space for more cabins. Due to minimal noise and vibration, Azipod® propulsion also improves passenger and crew comfort. The units’ ability to turn in all directions increases cruise ships’ access to ports without tug assistance. Options for Azipod propulsion now span 1.5MW to 22MW.