Carnival to sell its ships for survival

Carnival to sell its ships for survival

Despite difficulties, Carnival manages to stay afloat.

In these uncertain pandemic times, companies of all sorts have been affected. We’ve seen what’s been happening in the aviation industry. Now we will talk about what’s been happening on the sea. With Carnival, to be more specific.

Earlier this week, Carnival Cruise Line announced that 13 ships would be removed from its all brands, and the deliveries for news ships will be delayed. The process started last month when Carnival sold one ship and has made agreements to dispose of another 8 in the next 90 days.

Moreover, Carnival is looking to raise $1.26 billion in debt to keep its operations going. As for 2021, it canceled some sailings due to the pandemic, and postponed others until 2022.

The second quarter wasn't particularly strong for the company, reporting a net loss of $4.4 billion. The revenue came in at $0.7 billion, compared to last year's $4.8 billion. Still, Carnival Cruise Line ended with $7.6 billion in cash. The company will resume its activity at a future date per provisions from the government and the health authorities.

Carnival’s stock price was up 16% during the Wednesday session, but it lost 2.8% in after-hours trading.

News, news, news! Read them all on CAPEX.com!

Sources: marketwatch.com, seekingalpha.com, cruiseindustrynews.com


The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.