Carnival offsets soaring fuel prices

20th Sep 2011 14:53

Carnival's share price was pushed into the blue after the cruise operator reported its third quarter earnings on Tuesday afternoon, showing that it was able to offset higher-than-expected fuel prices in the period to keep net income stable.For the three months ended 31 August, net income totalled $1.34bn, up from $1.30bn, despite fuel prices jumping 45% to $686 per metric ton, from $473 in the third quarter of 2010. In June, the group's guidance was for prices to be $670 per metric ton.By 15:00, shares were 1.79% higher at 2,049.Diluted earnings per share (EPS) increased from $1.62 to $1.69, despite a $0.02 per share charge relating to the sale of Costa Marina, "which was not anticipated in the company's June guidance," the firm said. However, full-year EPS is expected to be between $2.40 and $2.44, lower than the $2.47 reported in 2010.Meanwhile, revenues reached $5.06bn, up from $4.53bn.The group said that booking volumes for the rest of the year and the first half of 2012 are ahead of last year at slightly higher prices."Despite the uncertain economic environment, we have a strong base of business for the first half of 2012, and booking trends during the third quarter have been solid. The increased level of importance consumers are placing on value continues to drive demand for our cruise products," said chief executive officer Micky Arison.BC