Post by lookingforatenbagger on May 27, 2021 14:35:27 GMT
Cruise operator Carnival Corporation has slashed its borrowing cost in half on more than $2.5bn of debt it took out early in the pandemic, underlining investors’ desire to back companies likely to benefit from the economic reopening. Carnival, which has been unable to operate in its core US market since March last year, last week said it finally expected to return three of its US-based cruise lines to service by July.
finance.yahoo.com/m/89c8d1f5-f0b6-39a1-a67a-fed4c0855bd9/carnival-slashes-interest.html
After this week's jump to $29.50 the Carnival's market cap is ~$33B, which coincidently is just about the total debt. They do have $11B in cash and equivalents. I have a few questions:
1. What was CCL's Operating Cash Flow in 2019?
2. How much of the $33B debt did they have on 12/31/19?
3. Given the increased fuel cost and added COVID precautions from 12/31/19 will CCl be able to service the debt?
Guru Focus estimates debt service to be $1.6B/year at a total interest rate of 5.2%. It cost CCL about $9B/year to maintain its ships at port in the trailing 12 months or just about all of the cash they have, although not all of the operating cost is in cash. I imagine Ocean Liners depreciate rather quickly.
It appears it is a race to start sailing and earning cash versus the cost of operations. The PPS is up 400% from its March 2020 low, but still 1/2 of its 2019 high.
finance.yahoo.com/m/89c8d1f5-f0b6-39a1-a67a-fed4c0855bd9/carnival-slashes-interest.html
After this week's jump to $29.50 the Carnival's market cap is ~$33B, which coincidently is just about the total debt. They do have $11B in cash and equivalents. I have a few questions:
1. What was CCL's Operating Cash Flow in 2019?
2. How much of the $33B debt did they have on 12/31/19?
3. Given the increased fuel cost and added COVID precautions from 12/31/19 will CCl be able to service the debt?
Guru Focus estimates debt service to be $1.6B/year at a total interest rate of 5.2%. It cost CCL about $9B/year to maintain its ships at port in the trailing 12 months or just about all of the cash they have, although not all of the operating cost is in cash. I imagine Ocean Liners depreciate rather quickly.
It appears it is a race to start sailing and earning cash versus the cost of operations. The PPS is up 400% from its March 2020 low, but still 1/2 of its 2019 high.