20th Dec 2021 15:23
(Alliance News) - Carnival PLC on Monday said its loss in the fourth quarter widened but noted its cash from operations turned positive in November as it continues to ramp up production.
Shares in the cruise operator were up 3.1% in London on Monday afternoon at 1,284.60 pence each. In New York, the shares were up 4.0% at USD18.98.
In the three months to November 30, Carnival's net loss was USD2.62 billion, steepened from USD2.22 billion a year before.
Diluted loss per share was USD2.31 compared to USD2.41 loss a year before.
Revenue surged to USD1.29 billion from USD34 million. Carnival noted, however, operating costs rose to USD1.82 billion from USD688 million and payroll costs also increased to USD475 million from USD217 million.
Carnival President and Chief Executive Officer Arnold Donald said: "Since resuming guest cruise operations, we have established effective protocols for Covid-19 and its variants and have returned 65,000 team members and 50 ships, all while delivering an exceptional guest experience to over 1.2 million guests and counting.
"And we have done that while honouring our commitment to strive for excellence in compliance, environmental protection and the health, safety and well-being of everyone."
In the final quarter, revenue per passenger cruise day was up about 4% compared to the same period in 2019, driven in part by exceptionally strong onboard revenue.
As of November 30, 61% of the company's capacity was operating with guests on board and it expects the full fleet to be back in operation in the spring of 2022.
Available lower berth days for the fourth quarter of 2021 was 10.2 million, which represents 47% of total fleet capacity. This is expected to be 14.1 million for the first quarter of 2022, which represents 63% of total fleet capacity.
In the year to November 30, net loss narrowed to USD9.50 billion from USD10.24 billion but revenue fell to USD1.91 billion from USD5.60 billion.
The company's monthly average cash burn rate for the fourth quarter of 2021 was USD510 million, which was better than expected.
Donald added: "Our cash from operations turned positive in the month of November, and we expect consistently positive cash flow beginning in the second quarter of 2022 as additional ships resume guest cruise operations.
"We enter the year with USD9.4 billion of liquidity, essentially the same liquidity level as last year but with significantly improved cash flow generation ahead, as ship operating cash flow and customer deposits continue to build. During 2021, we believe we have clearly maximized our return to service and strengthened our financial position to withstand potential volatility on our path to profitability."
By Paul McGowan; [email protected]
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