Filing shows Carnival Corp has 8 Billion cash

[jimbo5544]

https://www.cruiseindustrynews.com/cruise-news/23379-carnival-has-7-9-billion-in-cash-on-hand.html

Edited August 14, 2020 by jimbo5544

[jetsfan58]

Hopefully that is at full disclosure? Could be significantly more? They should be fine. Again the Carnival Board Members are not in business to lose money. They will figure it all out.

[Purvis1231]

Carnival still have massive overhead so how long will that money last? 

[RD64]

....and several new ships to pay for.

[Je Souhaite]

That leaves 7 months before they go belly up, if the reports are correct that they are burning a billion a month.

 

I honestly don’t see cruising starting up again within 7 months.  All bookings should be being made using a third party insurance plan.  If they do go belly up, and you insure through the line, your money will be lost.  Pay close attention.

[buckeyefrank]

3 minutes ago, Je Souhaite said:

That leaves 7 months before they go belly up, if the reports are correct that they are burning a billion a month.

 

I honestly don’t see cruising starting up again within 7 months.  All bookings should be being made using a third party insurance plan.  If they do go belly up, and you insure through the line, your money will be lost.  Pay close attention.

If you clicked on the link, Carnival says they're burning through about $650m per month resulting in 12 months liquidity.  As you say, pay close attention.   This also doesn't account for any future plans to liquidate ships or obtain additional financing.

Edited August 14, 2020 by buckeyefrank

[Je Souhaite]

Just now, buckeyefrank said:

If you clicked on the link, it Carnival says they're burning through 650mm per month resulting in 12 months liquidity.

I am referring to another post on this board that states such.

[ProgRockCruiser]

57 minutes ago, Je Souhaite said:

That leaves 7 months before they go belly up, if the reports are correct that they are burning a billion a month.

 

I honestly don’t see cruising starting up again within 7 months.  All bookings should be being made using a third party insurance plan.  If they do go belly up, and you insure through the line, your money will be lost.  Pay close attention.

 

54 minutes ago, buckeyefrank said:

If you clicked on the link, Carnival says they're burning through about $650m per month resulting in 12 months liquidity.  As you say, pay close attention.   This also doesn't account for any future plans to liquidate ships or obtain additional financing.

The total cruise industry is burning through $1B per month.  Carnival Corp is not the whole industry, but is the largest player, so $650M / mo looks about right.

 

Yeah, I reckon about next summer is when the whole industry collapses, if nothing recovers.  Little implosions before then, of course, but the whole shebang comes tumbling down next July if cruising doesn't resume to some useful capacity, IMHO.  I am not a financial analyst (look at my bank acct, it shows).  Just my guess.

[jimbo5544]

1 hour ago, Je Souhaite said:

That leaves 7 months before they go belly up, if the reports are correct that they are burning a billion a month.

 

I honestly don’t see cruising starting up again within 7 months.  All bookings should be being made using a third party insurance plan.  If they do go belly up, and you insure through the line, your money will be lost.  Pay close attention.

Carnival is not going belly up

[PhillyFan33579]

4 minutes ago, jimbo5544 said:

Carnival is not going belly up

How do you know that? I can’t predict the future, but if cruising from the US doesn’t resume in 2021, I don’t see how any of the major cruise lines avoid bankruptcy. At some point more people are going to get tired of giving the cruise lines interest free loans, which will only make the situation worse. 

[bitemyfly]

Hmmm belly up  if that means , closed down , cease to exist and all assets are sold off to settle debts .. I highly doubt that .

more than  likely carnival and other cruise lines would seek protections from Bankruptcy courts weather it’s a pre planed or not.

Carnival  and other public cruise Co. would have to be exploring those type of financial moves.

[jimbo5544]

19 minutes ago, PhillyFan33579 said:

How do you know that? I can’t predict the future, but if cruising from the US doesn’t resume in 2021, I don’t see how any of the major cruise lines avoid bankruptcy. At some point more people are going to get tired of giving the cruise lines interest free loans, which will only make the situation worse. 

Obviously, no one knows the future.  If, under the worst circumstances, they had to be ceased operations for over a year, of course they would do whatever they had to in order to remain viable.  My comment was in reference to a poster saying deposits could be in jeopardy.  There currently is no path to get there for any cruise booked today. 

[bury me at sea]

I love cruising and am hoping it survives.  Since I read this article earlier this morning I've been trying to figure out how to put a positive spin on it.  

 

The best I can do is to believe talented financial managers are working on this problem.  Taking on more debt is unattractive at best.  Continued downsizing seems probable.  Perhaps even liquidating one or more of their companies will be necessary.

 

I'm hoping for the best.  Meanwhile my April cruise was booked and paid for long ago.  My Sailabration cruise had only the deposit paid as "new money" and the balance will be paid with FCC from a cancelled cruise.  My newly booked 2023 cruise will be fully paid with FCC from another cancelled cruise.  So none of my three cruises on the books represents any actual income for Carnival for 2021, 22, or 23.  With all the FCC floating around their income situation looks pretty dire.

 

Just my opinion.

 

 

[jimbo5544]

Just now, bury me at sea said:

I love cruising and am hoping it survives.  Since I read this article earlier this morning I've been trying to figure out how to put a positive spin on it.  

 

The best I can do is to believe talented financial managers are working on this problem.  Taking on more debt is unattractive at best.  Continued downsizing seems probable.  Perhaps even liquidating one or more of their companies will be necessary.

 

I'm hoping for the best.  Meanwhile my April cruise was booked and paid for long ago.  My Sailabration cruise had only the deposit paid as "new money" and the balance will be paid with FCC from a cancelled cruise.  My newly booked 2023 cruise will be fully paid with FCC from another cancelled cruise.  So none of my three cruises on the books represents any actual income for Carnival for 2021, 22, or 23.  With all the FCC floating around their income situation looks pretty dire.

 

Just my opinion.

 

 

All potential options.  One can read into the liquidation of four ships as a move made for just the reason you suggest.

[xDisconnections]

3 minutes ago, bury me at sea said:

I love cruising and am hoping it survives.  Since I read this article earlier this morning I've been trying to figure out how to put a positive spin on it.  

 

The best I can do is to believe talented financial managers are working on this problem.  Taking on more debt is unattractive at best.  Continued downsizing seems probable.  Perhaps even liquidating one or more of their companies will be necessary.

 

I'm hoping for the best.  Meanwhile my April cruise was booked and paid for long ago.  My Sailabration cruise had only the deposit paid as "new money" and the balance will be paid with FCC from a cancelled cruise.  My newly booked 2023 cruise will be fully paid with FCC from another cancelled cruise.  So none of my three cruises on the books represents any actual income for Carnival for 2021, 22, or 23.  With all the FCC floating around their income situation looks pretty dire.

 

Just my opinion.

 

 

And then, with those FCCs, come the onboard credits which could be pretty harmful for the company providing several missed revenue opportunities when they are ready to resume operations. 
 

That is, assuming, they are obligated to honor said onboard credits.

[jetsfan58]

I really think that some of us are severely underestimating Carnival's Executive Leadership Team. To become a Corporate CEO (unless your parental lineage dictates the move) you have most likely been through numerous Corporate downsizing's. buyouts, hostile takeovers, media and wall-street scrutiny, bankruptcies, acquisitions and employee revolts.

 

Trust me when all the pieces fit together via this "World Health Solutions Puzzle" Carnival will be the first to alert it's Loyal Customers that they are back to "Full Sailing". In the interim we can still safely Dream.  

[BlerkOne]

New (and refurbished) ships are financed and Carnival already has a line of credit for that.

 

And Carnival Corp IS restarting cruising, so some money will be coming in. It's just from the developing nation of America that restarting cruising lags.

[BlerkOne]

37 minutes ago, xDisconnections said:

And then, with those FCCs, come the onboard credits which could be pretty harmful for the company providing several missed revenue opportunities when they are ready to resume operations. 
 

That is, assuming, they are obligated to honor said onboard credits.

I see the OBC as revenue generators that get some people cruising again that might otherwise be hesitant and think it is smart business to help restart the biz when the time comes.

[Je Souhaite]

1 hour ago, jimbo5544 said:

Carnival is not going belly up

Oh they are nervous.  I originally heard there was no turning back if they weren’t cruising in November.  They are now in the cusp of not sailing then, face or no face of Carnival saying otherwise.

 

and then suddenly there was the selling of ships......

[tinleypark andy]

2 hours ago, PhillyFan33579 said:

How do you know that? I can’t predict the future, but if cruising from the US doesn’t resume in 2021, I don’t see how any of the major cruise lines avoid bankruptcy. At some point more people are going to get tired of giving the cruise lines interest free loans, which will only make the situation worse. 

If we are not cruising in 2021, we may have much bigger problems on the horizon.

[jimbo5544]

1 hour ago, Je Souhaite said:

Oh they are nervous.  I originally heard there was no turning back if they weren’t cruising in November.  They are now in the cusp of not sailing then, face or no face of Carnival saying otherwise.

 

and then suddenly there was the selling of ships......

Anyone losing that amount of money should get nervous.  They are a stock company and have stock holders to answer to.   That said, I stand by my comments.  Nice to see you posting.  

[BlerkOne]

You can add almost another billion - and the interest rates just keep going down.

 

https://www.carnivalcorp.com/news-releases/news-release-details/carnival-corporation-plc-announces-pricing-900-million-second

 

 

[beerman2]

8 hours ago, BlerkOne said:

I see the OBC as revenue generators that get some people cruising again that might otherwise be hesitant and think it is smart business to help restart the biz when the time comes.

Someone is going to pay for that OBC, the cruiselines aren't going to eat it after all is said and done.

 

That someone IS the consumer. Has been for years and will continue. Nothing is ever free, it comes with a cost.

[jimbo5544]

2 hours ago, beerman2 said:

Someone is going to pay for that OBC, the cruiselines aren't going to eat it after all is said and done.

 

That someone IS the consumer. Has been for years and will continue. Nothing is ever free, it comes with a cost.

True, but I bet it is much worse than it looks.  As example, we have had 5 cancelled (many people cancelled on their own), we have booked 3, so dor us, they saved 40 %.  I bet a large number of people have multiples like that.   

[PhillyFan33579]

12 hours ago, jetsfan58 said:

I really think that some of us are severely underestimating Carnival's Executive Leadership Team. To become a Corporate CEO (unless your parental lineage dictates the move) you have most likely been through numerous Corporate downsizing's. buyouts, hostile takeovers, media and wall-street scrutiny, bankruptcies, acquisitions and employee revolts.

 

Trust me when all the pieces fit together via this "World Health Solutions Puzzle" Carnival will be the first to alert it's Loyal Customers that they are back to "Full Sailing". In the interim we can still safely Dream.  

Nobody on Carnival’s or other cruise lines senior leadership teams has ever dealt with a situation remotely close to this.  You are living in a dream world if you think Carnival is going to return to “full sailing” any time soon. The best you can hope for is cruise lines cruising from US ports in a limited capacity some time in 2021. However, with each passing day I think the likelihood of cruises resuming from US ports in 2021 goes down.