Carnival Corp 2nd half 2020 cash-burn rate expected to be $650M/month – Idaho Reporter


Carnival Corp 2nd half 2020 cash-burn rate expected to be $650M/month

Shares of Carnival Corp (NYSE: CCL) plunged on Wednesday moe than 6 percent and another fall happened on Thursday during pre-market hours of moe than 4%.

But Carnival Corp today issued an investor update via SEC filing where they said that the company is “seeing growing demand from new bookings for 2021. For the six weeks ending May 31, 2020, approximately two-thirds of 2021 bookings were new bookings. The remaining 2021 booking volumes resulted from guests applying their FCCs to specific future cruises.”

As of May 31, 2020, the current portion of customer deposits was $2.6 billion with $121 million relating to third quarter sailings and $353 million relating to fourth quarter sailings

Te Company also noted that during the pause in guest operations, the monthly average cash burn rate for the second half of 2020 is estimated to be approximately $650 million. This rate includes ongoing ship operating and administrative expenses, committed capital expenditures (net of committed export credit facilities), interest expense and excludes changes in customer deposits and scheduled debt maturities. The company also expects to refinance approximately $2.4 billion of debt maturities coming due over the next twelve months, half of which matures in the second half of 2020.

Furthermore, as soon as the normal operations are back Carnival will be ready for that because company previously had four ships scheduled to be delivered between May and October of 2020. Even though there is a delay in delivery (caused by COVID-19) this is actually playing in CCL favor because they do not expect normal operations to be back before September.

Share your thoughts

Theme by Anders Norén