Global cruise giant Carnival Corporation expects net loss results of operations for the fiscal year ending 30 November 2020, as a result of the disruptions brought by COVID-19 pandemic.
The Corporation believes the ongoing effects of COVID-19 on its operations and global bookings will have a material negative impact on its financial results and liquidity.
As a result, Carnival said it is taking additional actions to improve its liquidity, including capital expenditure and expense reductions, and pursuing additional financing.
Given the uncertainly of the situation, the Corporation is currently unable to provide an earnings forecast, however we expect results of operations for the fiscal year ending November 30, 2020 to result in a net loss.
This follows a previous announcement of Carnival regarding a voluntary and temporary pause of its fleet cruise operations by its continental Europe and North American brands.
On 13 March 2020, Carnival Corporation provided notice to the Lenders to borrow approximately $3 billion under the Facility Agreement for a period of six months.
As of this borrowing, Carnival Corporation will have fully drawn down the Facility Agreement.
The Corporation borrowed under the Facility Agreement in order to increase its cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the COVID-19 outbreak.
The proceeds from the Facility Agreement borrowings will be available to be used for working capital, general corporate or other purposes.
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