Carnival (US:CCL)2024-01-25 16:00Passenger Capacity and Operations - Carnival Corporation & plc carried 12.5 million passengers in 2023, a significant increase from 7.7 million passengers in 2022, reflecting a recovery in operations post-COVID-19[52] - The company expects passenger capacity to grow to 270,070 by 2024, up from 263,300 in 2023, indicating a 2.9% increase year-over-year[35] - In 2023, the company achieved a passenger capacity of 263,300, up from 259,060 in 2022, marking a 0.9% increase[35] - In 2023, Carnival Corporation & plc carried a total of 12,460 thousand passengers, a significant increase from 7,730 thousand in 2022, representing a growth of approximately 61%[53] - The North America and Australia segment accounts for 62% of total passenger capacity, with Carnival Cruise Line alone contributing 31%[38] - The Caribbean itinerary accounted for 33% of passenger capacity in 2024, up from 31% in 2023, while the Mediterranean decreased from 15% in 2023 to 14% in 2024[54] Fleet and Construction - Carnival Corporation & plc has four cruise ships under construction, expected to be delivered through 2025, enhancing its fleet capacity[40] - The company operates a diverse portfolio of cruise brands, including Carnival Cruise Line, Princess Cruises, and Holland America Line, catering to various consumer preferences[32] Financial Performance and Strategy - The company aims to strengthen its balance sheet and deliver long-term shareholder value by generating record levels of cash from operations and responsibly reducing debt over time[30] - Carnival Corporation & plc's brands represent approximately 80% of the cruise industry capacity, competing with major players like Royal Caribbean and Norwegian Cruise Line[37] - In 2023, onboard and other revenues contributed 34% of total cruise revenues, including accommodations, meals, entertainment, and shore excursions[59] Marketing and Advertising - In 2023, Carnival Corporation & plc increased its marketing and advertising efforts significantly after a reduction during the pandemic, focusing on digital performance marketing[64] Sustainability and Environmental Commitment - The company is committed to sustainability, investing in technology upgrades and fleet improvements to reduce its environmental footprint[29] - The company has implemented a Safety Management System (SMS) that includes health and security procedures, emergency response protocols, and environmental protection policies[119] - The company adheres to ISO 14001 standards for environmental management, ensuring compliance with international environmental regulations[122] - The IMO's global 0.5% sulfur cap for marine fuel, effective January 2020, is being implemented alongside the EU's similar directive[129] - Advanced Air Quality Systems are installed on most ships, helping to mitigate financial impacts from emissions regulations[131] - The company is committed to net zero emissions by 2050, with a focus on developing new technologies and alternative fuels[162] - The company has achieved a 14.0% GHG intensity reduction on an ALB-km basis relative to the 2019 baseline, and a 35.4% reduction relative to 2008[159] - The company has removed hundreds of millions of single-use plastic items from the fleet, achieving its 2021 goal of 50% reduction[160] - The company is on track to achieve 100% cage-free eggs and responsible chicken sourcing by the end of 2025, with 55% and 34% sourced respectively in fiscal year 2023[160] Cybersecurity and Data Privacy - Carnival Corporation & plc's cybersecurity programs are continuously evolving to address increasing threats, with a dedicated Chief Information Security Officer overseeing these efforts[82] - The company emphasizes data privacy and security, with standards in place to protect personal information in compliance with applicable laws and regulations[83] - In 2023, penalties and settlements related to cyber incidents were not material for the company[84] Taxation and Compliance - The effective tax rate for Costa and AIDA's earnings not eligible for the Italian tonnage tax regime was 4.8% in 2023 and 2022[102] - The company believes that its U.S. source income is currently exempt from U.S. federal income and branch profit taxes due to its operations in international transportation[92] - The company expects the annual impact of the OECD's 15% minimum tax rules to be approximately $200 million, potentially affecting them in 2026[104] - The company is subject to various U.S. state income taxes based on its U.S. source income, with Alaska imposing an income tax on its allocated portion[97] Climate Risk Management - The Chief Climate Officer (CCO) and the Boards of Directors oversee climate-related risks and opportunities, supported by executive management[177] - A Strategic Risk Evaluation (SRE) Committee was established in 2022, consisting of executive management members, to assist the CCO in managing climate-related risks[178] - The SRE Committee held five meetings in 2023, providing quarterly updates to the Boards on climate-related matters[179] - Identified climate-related risks include increased costs from climate regulations and the inability to meet climate requirements, impacting access to capital[183] - Transition risks are considered the most significant, particularly regarding the shift to a low-GHG emissions future[186] - The company has set 2030 Climate Action Goals and is monitoring progress against these targets[181] Employee and Crew Welfare - Carnival Corporation & plc employed an average of 92,000 shipboard employees in 2023, with 56% of shipboard employees represented by collective bargaining agreements[72][73] - The company has implemented shipboard employee well-being standards, including preventive health offers and mental health support[159] Future Initiatives and Goals - The company plans to open a new exclusive cruise port destination, Celebration Key, in 2025, which will accommodate two of its largest ships simultaneously[62] - The company has conducted a climate study for port development projects to enhance climate resilience, which was approved for investment[203] - The company has set a goal to achieve a 50% reduction in unit food waste per person by 2030 as part of its Circular Economy 2030 Goals[200] - The company is investing in projects to improve energy efficiency, with a premium of $75 to $100 per metric ton added to fuel costs for GHG emissions reduction[201]