Carnival Corp’s fourth quarter 2021 business update showed a US GAAP net loss of $2.6 bill and adjusted net loss of $2 bill.
The fourth quarter also ended with $9.4 bill of liquidity.
For the cruise segments, revenue per passenger cruise day (PCD) during the quarter increased by about 4%, compared to a strong 2019. The increase was driven in part by exceptionally strong on board and other revenue.
Cumulative advanced bookings for the second half of 2022 and first half of 2023 were at the higher end of historical ranges and at higher prices, with or without the future cruise credits (FCC), normalised for bundled packages, compared to 2019 sailings.
Customer deposits increased $360 mill in 4Q21, marking the third consecutive quarter the company has seen an increase in deposits.
Through its debt management efforts, Carnival has refinanced over $9 bill to date, reducing its future annual interest expense by around $400 mill per year and extending maturities, optimising its debt maturity profile.
Carnival Corp’s President and CEO, Arnold Donald, said, “Since resuming guest cruise operations, we have established effective protocols for COVID-19 and its variants and have returned 65,000 team members and 50 ships, all while delivering an exceptional guest experience to over 1.2 mill guests and counting. And we have done that while honouring our commitment to strive for excellence in compliance, environmental protection and the health, safety and well-being of everyone.
“Our cash from operations turned positive in the month of November, and we expect consistently positive cash flow beginning in the second quarter of 2022 as additional ships resume guest cruise operations.
“We enter the year with $9.4 bill of liquidity, essentially the same liquidity level as last year but with significantly improved cash flow generation ahead, as ship operating cash flow and customer deposits continue to build.
“During 2021, we believe we have clearly maximised our return to service and strengthened our financial position to withstand potential volatility on our path to profitability,” he said.
Donald added, “We achieved 4% higher revenue per passenger day in our fourth quarter compared to a strong fourth quarter of 2019, while at the same time ramping up occupancy and capacity. In fact, Carnival Cruise Line experienced another quarter of double-digit revenue growth per passenger day, compared to 2019, operating at nearly 60% of its capacity while also improving occupancy, and is now approaching 90% occupancy levels in the month of December, which is a testament to the fundamental strength in demand for our cruise product.”
The company’s monthly average cash burn rate for 4Q21 was $510 mill, which was better than expected.
Carnival Corp’s CFO, David Bernstein, confirmed, “We ended the fiscal year with $9.4 bill of liquidity and have addressed our short-term maturities, improving our future liquidity position. Through our debt management efforts, we have refinanced over $9 bill to date, reducing our future annual interest expense by approximately $400 mill per year and extending maturities, optimising our debt maturity profile.
“During 2022, we will continue to be focused on pursuing refinancing opportunities to reduce interest rates and extend maturities. We believe we have the potential to generate higher EBITDA in 2023, compared to 2019, given our additional capacity and improved cost structure. Therefore, in 2023, our focus will shift to deleveraging driven by cash from operations,” he said.
During 4Q21 the company refinanced $2.6 bill, bringing the total amount refinanced to over $9 bill to date.