Carnival share price jumps as group posts full-year results

Net income jumps to $2.8 billion

Carnival share price jumps as group posts full-year results

Shares in Carnival (LON:CCL) have jumped in London this afternoon as the company updated investors on its fourth-quarter and full-year performance. As of 14:27 GMT, Carnival's share price had added 1.49 percent to 4,083.00p.

Highlights from the company statement:

4Q and Full Year Highlights

• FY 2016 U.S. GAAP net income of $2.8 billion, or $3.72 diluted EPS, compared to $1.8 billion, or $2.26 diluted EPS for the prior year

• FY 2016 adjusted net income of $2.6 billion, or $3.45 EPS, was higher than adjusted net income of $2.1 billion, or $2.70 EPS for the prior year (adjusted net income excludes unrealized gains and losses on fuel derivatives and other items, totaling $199 million in gains for FY 2016 and $349 million of losses for FY 2015)

• 4Q net revenue yields in constant currency increased 4.1% compared to prior year, better than September guidance of up approximately 3%

• 4Q net cruise costs excluding fuel per available lower berth day (“ALBD”) in constant currency increased 1.0% compared to prior year, in line with September guidance of up approximately 1%

• 4Q U.S. GAAP net income of $609 million, or $0.83 diluted EPS, compared to $270 million, or $0.35 diluted EPS for the prior year

• 4Q adjusted net income of $491 million, or $0.67 EPS was higher than net income of $389 million, or $0.50 EPS for the prior year (adjusted net income excludes unrealized gains and losses on fuel derivatives and other items totaling $118 million in gains for 4Q 2016 and $119 million of losses for 4Q 2015)

Outlook

• At this time, cumulative advance bookings for the first three quarters of 2017 are well ahead of the prior year at considerably higher prices

• FY 2017 net revenue yields in constant currency are expected to be up approximately 2.5% compared to the prior year

• FY 2017 net cruise costs excluding fuel per ALBD in constant currency are expected to be up approximately 1.0% compared to the prior year

• FY 2017 adjusted EPS is expected to be in the range of $3.30 to $3.60, compared to FY 2016 adjusted EPS of $3.45

• 1Q 2017 adjusted EPS is expected to be in the range of $0.31 to $0.35, compared to $0.39 in 1Q 2016 due to unfavorable changes in fuel prices (including realized fuel derivatives) and currency exchange rates

President and Chief Executive Officer Arnold Donald commenting on these results:

“We achieved the most profitable year in our company’s history as well as record fourth quarter earnings. The continued execution of our core strategy to drive consumer demand in excess of measured capacity growth, contain costs and leverage our industry-leading scale resulted in our third consecutive year of significantly higher earnings and return on invested capital. The delivery of over $5 billion in cash from operations for our shareholders enabled increased dividend distributions reaching $1 billion and the investment of over $2.3 billion in the repurchase of Carnival Corporation stock. This continued strong performance is a credit to the outstanding contributions of our 120,000 employees worldwide who work every day to exceed our guests’ expectations and our thousands of travel agent partners around the globe whose support is crucial to our success.”

“We enjoyed strong momentum in booking patterns throughout 2016 and therefore are in a stronger booked position entering the new year at higher prices as a result of our ongoing efforts to increase consideration and demand for our brands.”

“We are anticipating another solid year of operational improvement in 2017. Despite the unusual and significant impact of fuel and currency working against us simultaneously, the underlying strength in our fundamental business leaves us well positioned to achieve sustained double digit return on invested capital and to create continued value for our shareholders.”

As of 14:29 GMT, Tuesday, 20 December, Carnival plc share price is 4,070.00p.

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