Advertisement

Carnival Borrows Cash, Predicts Net Loss for 2020

Carnival Brand Ships in Port

Carnival Corporation announced in a filing on Monday that it will borrow $3 billion for six months to meet its liquidity obligations in light of the current uncertainty in the global markets resulting from the COVID-19 outbreak. Carnival said the funds from the credit facility will be used for working capital, general corporate and other purposes.

Carnival said in the filing that the ongoing effects of COVID-19 on its global bookings and operations will have a material negative impact on its financial results and liquidity, and that is taking additional actions to improve its liquidity, including capital expenditure and operating expense reductions, and pursuing additional financing.

Due to the spread of the virus and recent developments, including port restrictions related to the outbreak, Carnival previously announced that all of its brands have temporarily paused their cruise operations.

The full impact, according to Carnival, will be determined by the length of time the event influences travel decisions. And given the uncertainly of the situation,

Carnival said it is currently unable to provide an earnings forecast, however, it expects results of operations for the fiscal year ending November 30, 2020 to result in a net loss. That would be the first net annual loss for the company since it went public in 1987, according to Cruise Industry News’ Financial Tracking Report.

Cruise Industry News Email Alerts

 

Email Newsletter

Get the latest breaking cruise news. Sign up.

Cruise Ship Orderbook

113 Ships | 237,024 Berths | $65 Billion | View

New 2020 Expedition Report

Cruise Industry News Luxury Report

Highlights:

Booming Market

200 Pages

Full Intelligence

Capacity Metrics

2020-2027

All Players

Full Coverage

Order Today

USA River Cruise Report

River Cruise Report

Highlights:

Close to Home

New Ships

New Operators

Capacity Metrics

2020-2024

Full Coverage

Order Today