Arnold Donald, president and CEO of Carnival Corporation, sold 62,639 company shares on Tuesday at a price of $21.12 for proceeds of $1,322,935, according to an SEC filing.
While the timing was less than ideal as the company remains out of service, the transaction was relatively routine.
Donald sold Carnival shares in mid-January in 2020, although at a much higher per-share price before the onset of the COVID-19 pandemic.
Norwegian Bliss in Ponta Delgada photo credit Dave Jones
Norwegian Cruise Line Holdings Ltd on Monday warned of a quarterly loss and withdrew its 2020 forecast, as the cruise operator struggles with the suspension of all voyages through the end of June due to the coronavirus crisis.
The pandemic has halted international travel and effectively shut down the cruise ship and airline industries, with companies, now bleeding cash and scrambling for new funds to ride out the slowdown that could last longer than expected.
Shares of Norwegian Cruise and rivals Carnival Corp and Royal Caribbean Cruises have taken a hit in the past few months as ships remain docked at ports and people wary of taking trips in the future.
The cruise liners are also not eligible to receive funding under the coronavirus stimulus bill since they were not incorporated in the United States, adding to further woes for the companies.
Norwegian Jade Photo was taken from a tender credit Dave Jones
Norwegian Cruise withdrew its forecast for the first quarter and the rest of the year but said it expects to report a loss for those periods. Royal Caribbean has also withdrawn its forecast, while Carnival, which operated two of the virus-stricken cruises, has predicted an annual loss.
Shares of the Miami-based Norwegian Cruise rose about 9%, while those of Royal Caribbean and Carnival were up about 8%. The stocks have lost about three-quarters of their value so far this year.
Norwegian Cruise said it would cut $515 million in spending to boost its cash reserves and estimated cash burn of about $110 million to $150 million per month as suspension of its three brands continue.
The company, which had about $1.4 billion in cash and cash equivalents at the end of March, said on Monday it had $1.8 billion of ticket sales as of March 31, that includes cancellations of about $850 million through June 30.
Despite growing cancellations, Chief Executive Officer Frank Del Rio, was optimistic about future demand, echoing Carnival’s CEO Arnold Donald who has predicted strong 2021 bookings.
“We believe the disruption to the travel industry, while swift and severe, will eventually subside,” Del Rio said.
Norwegian Cruise said booking trends indicate demand for cruise vacations for 2021 is essentially flat, although at lower prices.
Norwegian Cruise Line Holdings has reportedly hired experts at investment bank Goldman Sachs to explore financing options on its behalf.
The parent of Norwegian Cruise Line, Regent Seven Seas Cruises and Oceania Cruises has tasked Goldman Sachs will looking into options which could include the sale of a stake in the company, according to a report from Reuters.
It comes amid a global pause on cruise operations due to the coronavirus outbreak.
The report suggests NCLH is considering a stake sale known as private investment in public equity (PIPE), with the company said to be in talks with several private equity firms.
Goldman Sachs declined to comment and the Reuters report said NCLH did not immediately respond to a request for comment.
It comes after Carnival Corporation raised $6.25 billion by issuing new debt and equity to investors. It made a share offering to raise $3 billion and said it would issue $1.75 billion in senior convertible notes. It also commenced an underwritten public offering of $1.25 billion of shares of common stock and underwriters were being given an option purchase of up to $187.5 million additional shares.
Earlier this month it was announced that Saudi Arabia’s sovereign wealth fund had acquired a minority stake in Carnival Corp. The Public Investment Fund based in Riyadh disclosed that it had taken an 8.2% shareholding in the world’s largest cruise company, estimated to be valued at around $370 million.
Royal Caribbean Cruises – parent of Royal Caribbean, Azamara, Celebrity Cruises and Silversea, also announced a $2.2 billion loan last month as it looked to shore up cash flow amid the pandemic.
On April 9, the US Centers for Disease Control and Prevention extended its ‘no sail order’ for all cruise ships for up to 100 days.
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