16th Mar 2020 14:15
(Alliance News) - Carnival PLC on Monday said the coronavirus pandemic will hurt its financial 2020 results and liquidity position, as it suspended operations of four additional North American cruise brands for one month.
The FTSE 100-listed travel stock was trading 6.9% lower at 1,081.00 pence each on Monday afternoon in London.
The company said it has fully drawn down on its USD3 billion loan facilities to increase its cash position amid uncertainty caused by the coronavirus outbreak, adding that the amount will be used for "working capital, general corporate or other purposes".
Carnival said that it is in the process of taking action to improve liquidity, including capital expenditure and expense reductions, and pursuing additional financing.
Looking ahead, the company said: "Given the uncertainty 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".
For financial 2019, Carnival posted pretax profit USD3.06 billion, on a revenue of USD20.83 billion. Net income stood at USD2.99 billion.
On Monday morning, Carnival said Carnival Cruise Line, Cunard North America, Holland America Line and Seabourn will suspend operations for one month, putting a pause on new voyages.
"Through serving our many guests who still wanted to travel, we've stood with all the people in the port communities here in the US, and in the other places we sail, who are dependent on us for their livelihood. Today we stand with the nation as we together seek to mitigate the spread," said Carnival Corp Chief Executive Arnold Donald.
On Thursday last week, the cruise ship operator said its Princess Cruises division would voluntarily pause its global operations for sixty days in response to the "unpredictable circumstances" evolving from the spread of coronavirus.
By Ife Taiwo; [email protected]
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