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Carnival Corporation & plc reports huge Q4 loss and security incident on two brands

Christian Fernsby |
Carnival Corporation & plc provided preliminary financial information for the fourth quarter ended November 30, 2020.

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Topics: CARNIVAL   

Results:

U.S. GAAP net loss of $2.2 billion and adjusted net loss of $1.9 billion for the fourth quarter of 2020.

Fourth quarter 2020 ended with $9.5 billion of cash and cash equivalents.

Cash burn rate in the fourth quarter 2020 was slightly better than expected due to the timing of capital expenditures.

The company has accelerated the removal of 19 less efficient ships, 15 of which have already left the fleet.

Cumulative advanced bookings for the first half of 2022 are ahead of 2019, despite minimal advertising or marketing.

Carnival Corporation & plc Chief Financial Officer David Bernstein noted, "We ended the year with $9.5 billion in cash and have the liquidity in place to sustain ourselves throughout 2021, even in a zero-revenue environment. While we raised capital mainly through debt this year, in the last few months we opportunistically strengthened our capital structure by raising $2.5 billion through at-the-market equity offering programs and by the early conversion of $1.5 billion of convertible debt. As we return to full operations, our cash flow will be the primary driver to return to investment grade credit over time, creating greater shareholder value."

The company is actively addressing an IT security incident affecting two of its brands. Based on preliminary assessment and on the information currently known, the company does not believe the incident will have a material impact on its business, operations or financial results.


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