Carnival Corporation & plc. reports that fuel expenses plummeted $131 million, or 41.2 percent, during the three months ended February 29, 2016, compared to the previous year.
Bunker fuel expenses amounted to $187 million between December and February, having been $318 million during the corresponding period in 2015.
Bunker fuel consumption rose by 33,000 tonnes, or 4.2 percent, to 816,000 tonnes, up from 783,000 tonnes last year.
The average fuel cost per metric tonne consumed plummeted $177, or 43.6 percent, to $229 per tonne, down from the $405-per-tonne average recorded during the three months ended February 28, 2015.
Fuel consumption per available lower berth day (ALBD) in the first fiscal quarter of 2016 remained unchanged at 0.042.
Unrealized net losses on fuel derivatives were $145 million compared with $112 million in 2015. Realized net losses were $91 million compared with $57 million during the same period last year.
2016 forecast
Please find below Carnival's fuel price and fuel consumption forecast for 2016.
Second-quarter 2016 forecast
Fuel price per metric tonne: $239
Fuel consumption (metric tonnes): 815,000
Full-year 2016 forecast
Fuel price per metric tonne: $244
Fuel consumption (metric tonnes): 3,270,000
Financial results
In its overall results for the first fiscal quarter of 2016, Carnival posted an adjusted net income of $301 million, or $0.39 diluted earnings per share (EPS) compared to $159 million, or $0.20 diluted EPS during the prior-year period.
U.S. GAAP net income, which included unrealized losses on fuel derivatives and other net charges of $159 million, was $142 million, or $0.18 diluted EPS. Last year, second quarter U.S. GAAP net income was $49 million, or $0.06 diluted EPS.
Revenues for the third quarter of 2015 were $3.7 billion compared with $3.5 billion the previous year.
Commenting on the results,
Arnold Donald, Carnival Corporation & plc President and Chief Executive Officer, said: "Our teams delivered another strong quarter of operational improvement by creating increased demand for our brands and leveraging our scale which resulted in revenue yield improvement approaching 6 percent and the near doubling of first quarter adjusted earnings. We thank our millions of loyal guests and valued travel professional partners around the globe for their patronage and support."
Second-quarter 2016 outlook
Second-quarter constant currency net revenue yields are expected to increase 1.5 to 2.5 percent compared to the prior year. Net cruise costs excluding fuel per ALBD for the second quarter are expected to be up 0.5 to 1.5 percent on a constant currency basis compared to the prior year.
Based on the above factors, the company expects adjusted earnings for the second quarter 2016 to be in the range of $0.34 to $0.38 per share compared with 2015 adjusted earnings of $0.25 per share.
2016 outlook
Cumulative advance bookings for the remainder of 2016 are said to be well ahead of the prior year at slightly higher prices. Since January, booking volumes for the remainder of the year are running ahead of last year's levels at higher prices.
Donald noted: "Our ongoing guest experience innovations coupled with our increasingly effective marketing and communication efforts have driven additional demand for our brands, resulting in a strong booked position. The lower levels of inventory remaining for sale for the balance of the year, particularly for our peak summer period, positions our brands well for continued revenue yield growth and builds confidence in our full year earnings forecast.
"Additionally, the underlying strength of our operating performance, leading to sustained earnings and cash flow growth, has accelerated the return of capital to shareholders through our stepped up share repurchase program. Since resuming the share repurchase program, we have bought back approximately 27 million shares returning $1.3 billion to shareholders in the last six months," Donald added.
On a constant currency basis, compared to the prior year, the company continues to expect full year 2016 net revenue yields to increase approximately 3 percent and net cruise costs excluding fuel per ALBD for full year 2016 to be up approximately 2 percent.
Based on current booking strength, the company forecasts full year 2016 adjusted earnings per share to be in the range of $3.20 to $3.40, compared to December guidance of $3.10 to $3.40 and 2015 adjusted earnings of $2.70 per share.
Image: Carnival Dream.
