rss icon Subscribe
desktop mobile

Carnival Cashes In On COVID Rebound

© Mariakray / Adobe Stock

By Christopher Thompson

Cruises are renowned for their gargantuan all-you-can-eat buffets. Cruise company Carnival is stuffing its face again with a $1 billion equity raise - its third such helping after Chief Executive Arnold Donald feasted on a combined $2.5 billion in share offerings late last year. It's not clear that Donald needs the financial calories this time round: Carnival had cash to ride out 15 months of zero sales, assuming monthly cash burn of $600 million, at the end of 2020.

Despite ships remaining moored, investors can't seem to get enough: shares are priced at a mere 3% discount to Monday's close. It coincides with optimism that vaccination success in the United States and Europe may at least allow Carnival's baby-boomer demographic to travel freely again: shares in tour operator Tui, along with airlines easyJet, Ryanair and International Airlines Group, spiked by between 4% and 8% on Tuesday after the UK announced plans to lift curbs by summer. Shareholder largesse means HSBC reckons Carnival's net debt should decline to around $22.4 billion, equal to 5 times forecast 2022 EBITDA, according to Refinitiv data. That still leaves a strong peril of seasickness.

Feb 23, 2021



Stuck in Port, Royal Caribbean Posts $1 Billion Quarterly Loss

© Studio Barcelona / Adobe Stock

Royal Caribbean Group reported a billion-dollar net loss for the fourth straight quarter on Monday

Damen Names Suhlmann CFO, Herrebout Chief Counsel

Ronald Suhlmann (Photo: Damen)

As of April 1, Ronald Suhlmann will become chief financial officer of Damen Shipyards Group.

Hapag-Lloyd Expects Q1 Operating Profit to More Than Triple

© travelview / Adobe Stock

Germany's Hapag-Lloyd sees its first-quarter operating profit more than tripling to at least 1.

Passenger Vessels

American Cruise Lines Adds Sixth Ship to Pacific Northwest

American Harmony (Photo: American Cruise Lines)

American Cruise Lines now has six ships in the Pacific Northwest for 2021, with four of them

Royal Caribbean Advance Bookings Rise with Eyes on Vaccinations

© Phuong / Adobe Stock

Royal Caribbean Group said on Monday it was seeing an uptick in future bookings, following a

Meyer Werft Cuts Steel for P&O Cruises' Latest Newbuild

(Photo: Meyer Werft)

With the steel cutting, German shipyard Meyer Werft has begun building the new cruise ship Arvia

Maritime Apps