Carnival Heads Into Rough Waters
According to Lazard Freres and Co., the impact on Carnival's (CCL) business in the first week following terrorist attacks on September 11th is estimated at around $20 million, including loss of revenue from canceled cruises, port reposition costs, and additional transportation expenses. They have since dropped to about 50 to 60 percent of typical levels for this period, but cancellations, which had increased sharply in the days immediately following September 11th, have started to decline steadily with new bookings now outpacing cancellations. Luxury product continued to suffer in the quarter- the company has sold two vessels from the Seabourn fleet and reduced staff at Cunard/Seabourn by 25 percent.
Trico Names Non-Executive Chairman
Accelerating its strategic goal of reducing its total amount of outstanding indebtedness, Trico Marine Services, Inc. announced the appointment of Joseph Compofelice as non-executive Chairman of the Board and the retention of Lazard Freres & Co. LLC as financial advisor and Kirkland & Ellis LLP as legal advisor. This team will assist the Company's management in exploring various alternatives including selling assets, raising additional financing and restructuring the Company's debt, including its $250 million Senior Notes due 2012. Compofelice, a director of Trico since 2003, is chairman of the Company's Audit Committee and has served as an executive of several public companies including CEO of CompX International and CFO of Titanium Metals Corporation…
Tanker Euphoria Drives Ratings Bump
The cyclical nature of the tanker market continues its trend upward, a development which has Lazard & Freres & Co. stamping both Nordic American Tankers (ASE: NAT) and Knightsbridge Tankers Ltd. In a pair of separate corporate profiles released June 29, Lazard & Freres’ James L. In accordance with this information, Winchester has raised VLCCF’s 2000 dividend estimate to $2.32 from $2.29, a dividend which implies of yield of 11.9%. There are a myriad of factors driving the current VLCC surge, chief among them increased oil production and a lack of qualified tonnage. Oil production was boosted by a 708,000 bpd rise in OPEC quota, agreed June 21 to help keep oil pricing in the desired $22-$28 range.
Kirby Corp. Records Solid Results
Kirby Corp. has apparently had success incorporating Hollywood Marine, a move which effectively created the largest inland barge operator in the country. In February, the company reported earnings per share (EPS) of $0.38, versus $0.31 a year ago. While the company appears strong, poised for further growth, there are some concerns as noted in a research report from Lazard Freres & Co. LLC. Management expects the slowing U.S. economy to negatively impact transportation volumes, particularly for chemicals, as those customers project reduced demand for the year. First quarter results will also undoubtedly be touched by severe weather conditions common in the Midwest in January.
Wall Street Worries About Cruise Fleet Pricing
The big cruise lines have been steadily filling their rapidly expanding fleets with passengers looking to escape an especially harsh North American winter, but as they get ready to release quarterly results, Wall Street is worried that ticket prices may not be high enough. Analysts are expecting profit declines for the winter quarter from the top three cruise lines, starting with industry leader Carnival Corp., which plans to release its fiscal first-quarter results on Wednesday (March 21, 2001). Cruise stocks, including those of Royal Caribbean, the world's No. 2 operator, and Britain's P&O Princess Cruises, which ranks third, have in recent weeks given up much of their bounce back gains after a sustained decline last year.
New Ship Expected To Generate More Than $30M For AMCV
The new ship to be purchased by American Classic Voyages from Carnival Corp. is expected to generate $35-40 million of cash flow for the company, and incremental earnings power could top $.50 a share, according to a report released by Lazard Freres & Co. LLC. AMCV announced last week an agreement to acquire the 1,214 berth Nieuw Amsterdam from Carnival for $114.5 million. The ship will be delivered to AMCV in October of next year, at which time the company will launch its new Hawaiian cruise service. American Classic plans to re-document the Nieuw Amsterdam as a U.S. flag vessel, with a U.S. crew, to sail the Hawaiian Islands as part of its Project America. The Nieuw Amsterdam will be the only large foreign flag cruise ship allowed to operate a domestic cruise service.
