Investing in Carnival Cruise Line Inventory (CCL)

Carnival Corp. (CCL) is one of the largest travel companies in the world. It operates global cruise lines including its leading brand, Carnival Cruise Line, as well as Princess Cruises, Seabourn, P&O Cruises, Cunard and others. The company operates 87 ships that call at over 700 ports worldwide and serve almost 13 million guests every year.

Carnival Corp. and Carnival plc work together double listed company. The common stock of Carnival Corp. are traded on the New York Stock Exchange under the ticker CCL, and Carnival plc is listed on the London Stock Exchange under the symbol. acted CCL and as a American Depositary Share (ADS) on the NYSE under the symbol THICK. The two companies operate like a single commercial enterprise. They have a single senior executive management team and identical boards of directors. The company started out as the Carnival Cruise Line, founded in 1972 by Ted Arison. In 1987 there was an initial public offering (IPO) of 20% of the ordinary shares. Carnival Corp. was founded in Panama in 1974 while Carnival plc was founded in England and Wales in 2000. On April 22, 2003, Carnival Corp. and Carnival plc trading on the NYSE and LSE.

Carnival is headquartered in Miami, Florida. The company’s President and Chief Executive Officer (CEO) is Arnold W. Donald. Carnival is classified as a member of the consumer discretionary (non-cyclical consumer staples) sector and operates in the hotel, restaurant and leisure industries. The company’s direct competitors include cruise lines such as the Royal Caribbean Group (RCL), Norwegian Cruise Line Holdings Ltd. (NCLH) and Lindblad Expeditions Holdings Inc. (LIND). It also faces competition from the broader travel and tourism industries, including resorts, casinos, and theme parks. For fiscal 2020, which ended November 30, 2020, Carnival reported a net loss of $ 10.2 billion on sales of $ 5.6 billion.

The central theses

• Carnival operates global cruise lines including Carnival Cruise Line, Princess Cruises, Seabourn, and others.
• Its main competitors include the Royal Caribbean Group (RCL), Norwegian Cruise Line Holdings Ltd. (NCLH) and Lindblad Expeditions Holdings Inc. (LIND).
• For fiscal 2020, which ended November 30, 2020, Carnival reported a net loss of $ 10.2 billion on sales of $ 5.6 billion.
• Carnival participated in both a large junk bond sale and a $ 2.3 billion refinancing of high-priced debt in October to reduce short-term debt maturities and get ships back into the water.

The latest developments in Carnival

• Bloomberg reported on October 20, 2021 that Carnival had sold a junk bond that was valued at $ 2 billion. Carnival’s offering of 7.5 year unsecured notes, above the original target of $ 1.5 billion, at a reported yield of 6%. The deal followed a $ 2.3 billion loan sale in early October. During the pandemic, Carnival has been focused on “clearing” short-term debt maturities as it begins to get its ships back on stream, Bloomberg says. Management predicts greater cash burn in the fourth quarter with a return to positive free cash flow by mid-2022.
• On October 12, 2021, Carnival announced John Padgett as the new President of Princess Cruises, effective immediately. Padgett previously served as Carnival Corp’s Chief Experience and Innovation Officer since 2014.

What will happen to Carnival and COVID-19?

Carnival suspended its guest cruise operations in mid-March 2020 due to the global impact of COVID-19. As part of a step-by-step restart in September 2020, the company resumed limited guest operations.

In its earnings report for the first quarter of fiscal year 2021, which ended on February 28, 2021, the company announced that the first cruises would take place with adjusted passenger capacity and improved health protocols. AIDA Cruises resumed guest cruise operations in March 2021. In its Q2 FY 2021 report for the period up to December 31, By August 31, 2021, eight of the company’s nine brands had resumed guest cruise operations, with 35% of the company’s capacity operating with guests on board.

Carnival Cruise Line has implemented a wide range of detailed COVID-19 protocols. This includes pre-cruise questionnaires and tests for vaccinated guests, as well as proof of vaccination, which is required before boarding at the terminals. Vaccination exemptions for select Caribbean destinations are currently available for a small number of children under the age of 12, adolescents and adults with medical-confirmed medical conditions that prevent vaccination. Unvaccinated guests must present a negative PCR-COVID-19 test as well as an antigen test upon embarkation and a retest within 24 hours of disembarkation. Unvaccinated guests are also required to show travel insurance in some cases and are only allowed to disembark at ports of call when booked on a Carnival-sponsored bubble tour.

frequently asked Questions

When did Carnival resume cruises?

Carnival started cruises from the USA again on July 3, 2021. On this day, the Carnival Vista sets sail in Galveston, Texas.

Who is Carnival’s CEO?

Carnival’s CEO has been Arnold W. Donald since 2013. Donald was previously President and CEO of the Executive Leadership Council from 2010 to 2012 and of the Juvenile Diabetes Research Foundation International from 2006 to 2008. Prior to that, he also held senior management positions at Merisant Co. and Monsanto Co.

Has Carnival (CCL) ever shared its shares?

Yes sir. Carnival split its stock twice:

• December 14, 1994: a 2-to-1 split of common stock.
• June 12, 1998: 2: 1 split of common shares.

Does Carnival (CCL) pay a dividend?

No, Carnival doesn’t pay dividends.

How many Carnival (CCL) stocks are there?

As of September 22, 2021, Carnival stock had 981,048,453 shares outstanding.