Carnival orders 9 cruise ships as earnings rise

(MENAFN- AFP) Cruise giant Carnival Friday reported better earnings on lower fuel costs as it ordered nine new cruise ships from shipbuilders in Germany and Italy.

Carnival, the world's largest cruise company, ordered five ships from Italian shipbuilder Fincantieri and four ships from Germany's Meyer Werft.

The new ships will be delivered from 2019-2022 and are intended to serve established cruise markets in North America and Europe as well as newer venues such as China, Carnival said.

"These will be the most efficient ships we have ever built and the great guest experience will create even more excitement around cruising -- helping new cruisers realize the superior vacation experience and value that cruising offers versus land-based vacations," said Arnold Donald, chief executive of Carnival.

The cruise company reported earnings of $49 million for the quarter ending February 28 as compared with a loss of $20 million a year ago. Fuel prices declined 38 percent from the year-ago period

Carnival cited an "ongoing improvement in underlying fundamentals" that means advance bookings for the remainder of 2015 are running ahead of last year at higher prices.

Carnival said the strong dollar shaved its forecast for 2015 earnings by $219 million. However, this impact has been partially offset by the improved cruise market.

The company projects earnings in the range of $2.30-$2.50 per share in 2015, up from $1.93 per share last year.

Shares of Carnival, Norwegian Cruise Line and Royal Caribbean Cruises have outperformed the S&P 500 over the last year on improved sentiment about their profit outlook, thanks in part to lower fuel prices.

Carnival shares jumped 5.8 percent to $46.98 on Friday, lifting other cruise operators' shares.