11th Jan 2021 15:14
(Alliance News) - Carnival PLC on Monday said it expects to post a swing to loss for its fourth financial quarter, though experiences a slightly better cash burn rate than expected.
Shares in Carnival were down 1.7% at 1,300.00 pence in London in afternoon trading.
The company's US GAAP net loss for the three months ended November 30 was USD2.22 billion, a swing from the cruise ship operator's USD323 million net income figure the prior year.
Carnival noted that its cash burn rate for the quarter was USD500 million, a little better than expected thanks to the timing of capital expenditures.
For the first quarter of its 2021 financial year, Carnival is expecting the monthly average cash burn rate to be around USD600 million, a figure that includes ongoing ship operating and administrative expenses as well ad interest expenses, working capital changes, and capital expenditures. It excludes scheduled debt maturities plus other cash collateral.
Carnival's current outstanding debt maturities are USD500 million in the first quarter of financial 2021, USD400 million in the second, USD700 million in the third and USD300 million in the fourth.
The company said it is still exploring opportunities for shrinking its monthly cash burn rate.
Carnival ended its fourth quarter with USD9.5 billion of cash and cash equivalents. In financial 2021, it is expecting to enter financial truncations that optimise its capital structure and could involve enhancing liquidity.
So far, Carnival has accelerated removed of 19 of its less efficient cruise ships, with 15 of these having already left its fleet.
The firm also highlighted that its cumulative advanced bookings for the first half of financial 2022 are ahead of 2019. It is comparing to 2019 due to the pause in cruise operations resulting from Covid-19.
"The company believes the continued build in cumulative advanced bookings for this twelve month period ending May 2022 demonstrates the long-term demand for cruising. The company highlights this level of bookings was achieved with minimal advertising and marketing," said Carnival.
In terms of outlook, Carnival said: "Currently, the company is unable to predict when the entire fleet will return to normal operations, and as a result, unable to provide an earnings forecast. The pause in guest operations continues to have a material negative impact on all aspects of the company's business, including the company's liquidity, financial position and results of operations."
Carnival is expecting to post a net loss on both a US GAAP and adjusted basis for the first quarter and for the entire financial year ending November 30, 2021.
Chief Executive Arnold Donald said: "With the aggressive actions we have taken, managing the balance sheet and reducing capacity, we are well positioned to capitalize on pent up demand and to emerge a leaner, more efficient company, reinforcing our industry leading position."
By Anna Farley; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Carnival