Carnival Corp. Announces Pricing of 62,500,000 Shares of Common Stock

Carnival Corporation today announced that it has priced its underwritten public offering of 62,500,000 shares of common stock of the Corporation at a price of $8.00 per share.

The aggregate amount of shares of common stock to be issued in the offering was decreased to approximately $500 million from the previously announced $1.25 billion.

The offering is expected to close on April 6, 2020, subject to customary closing conditions. The Corporation has granted the underwriters an option to purchase up to 9,375,000 of additional shares, which option must be exercised on or before May 1, 2020.

The Corporation expects to use the net proceeds from the offering for general corporate purposes.

The Corporation also announced by a separate press release that it has priced its previously announced private offerings to eligible purchasers of $4 billion aggregate principal amount of 11.500% first-priority senior secured notes due 2023 and $1.75 billion aggregate principal amount of 5.75% senior convertible notes due 2023. 

Carnival Corp. expects 2020 earnings to suffer due to coronavirus

Carnival Corp. expects 2020 earnings to suffer due to coronavirus

Carnival Corp. said today that the impact of the Covid-19 coronavirus on bookings and cancelled cruises due to the outbreak would impact its 2020 earnings.

"Travel restrictions as a result of coronavirus necessitated the suspension of cruise operations from ports in China ... and are now resulting in the cancellation of voyages in other parts of Asia," the line said. "Significant events affecting travel typically have an impact on booking patterns, with the full extent of the impact generally determined by the length of time the event influences travel decisions. As a result of coronavirus, the company believes the impact on its global bookings and cancelled voyages will have a material impact on its financial results, which was not anticipated in the company's previous 2020 earnings guidance."

Carnival said that if it has to suspend all of its operations in Asia through the end of April, it would impact its fiscal 2020 financial performance by 55 to 65 cents per share, which includes guest compensation. In addition, the impact on global bookings will further affect the company's financial performance.

Carnival Corp. said it was evaluating contingency plans to mitigate the impact and would provide an update during its first-quarter 2020 earnings release in late March.

Carnival's stock price has fallen about 12% since mid-January.

Carnival Reports Record $2.8 Billion Profit in 2016

Carnival Reports Record $2.8 Billion Profit in 2016

Carnival Corp.

By https://gcaptain.com/
Carnival Corporation, the world’s largest cruise ship company, posted a record $2.8 billion profit for its full fiscal year 2016 as the company looks towards another solid year for the cruise industry in 2017.

Carnival Corp. reported the record full year and fourth quarter earnings Tuesday. Carnival announced net income for the full year 2016 of $2.8 billion, or $3.72 diluted EPS, compared to $1.8 billion, or $2.26 diluted EPS, for the prior year.

Carnival Corp. said revenues for the full year 2016 were $16.4 billion, $700 million higher than the $15.7 billion in the prior year.

“We achieved the most profitable year in our company’s history as well as record fourth quarter earnings,” said Carnival Corporation & plc President and Chief Executive Officer Arnold Donald. “The continued execution of our core strategy to drive consumer demand in excess of measured capacity growth, contain costs and leverage our industry-leading scale resulted in our third consecutive year of significantly higher earnings and return on invested capital. The delivery of over $5 billion in cash from operations for our shareholders enabled increased dividend distributions reaching $1 billion and the investment of over $2.3 billion in the repurchase of Carnival Corporation stock.”

Highlights from the fourth quarter 2016 included the U.S. debut of Carnival Cruise Line’s Carnival Vista. Holland America’s Koningsdam also made its North American debut in November while Seabourn took delivery of ultra-luxury cruise ship Seabourn Encore.

Seabourn Encore

During the quarter, Carnival Corp. also signed a memorandum of agreement with Meyer Werft for three new 180,000-ton cruise ships that will be powered by liquefied natural gas, the world’s cleanest burning fossil fuel. Two of the ships are for Carnival Cruise Line and are scheduled for delivery in 2020 and 2022. The third ship is designated for P&O Cruises (UK) and is scheduled for delivery in 2020. The company also signed an agreement with Shell to begin fueling its LNG-powered ships, starting with AIDA and Costa ships scheduled to launch in 2019.

Looking ahead, Carnival said it expects another solid year in 2017, forecasting adjusted earnings per share to be in the range of $3.30 to $3.60, compared to 2016 adjusted earnings per share of $3.45 in 2017.

“We are anticipating another solid year of operational improvement in 2017. Despite the unusual and significant impact of fuel and currency working against us simultaneously, the underlying strength in our fundamental business leaves us well positioned to achieve sustained double digit return on invested capital and to create continued value for our shareholders,” Donald added.