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Carnival signs deal for new LNG-powered cruise ship

EditorRachael Rajan
Published 14/02/2024, 06:06 am
© Reuters.
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MIAMI - Carnival (NYSE:CCL) Corporation & plc (NYSE/LSE: CCL; NYSE: CUK), the largest cruise operator globally, has finalized an agreement with Meyer Werft, a prominent German shipbuilder, to construct a new Excel-class cruise ship. The vessel is scheduled to join the Carnival Cruise Line fleet and commence service in Spring 2027.

The yet-to-be-named 180,000-ton ship will become the fourth Excel-class vessel under the Carnival Cruise Line brand, following Mardi Gras, Carnival Celebration, and Carnival Jubilee. It will have the capacity to accommodate over 6,400 guests and will be powered by liquefied natural gas (LNG), aligning with the industry's shift towards cleaner energy sources.

This marks the first new ship order by Carnival Corporation in five years. The company's president, Christine Duffy, highlighted the popularity of the Excel-class ships among guests, expressing that the new addition will enable the brand to continue its growth and attract both repeat and new cruisers.

Carnival Corporation's CEO, Josh Weinstein, emphasized the company's strategic approach to capital management, with plans to utilize free cash flow for balance sheet improvements, debt reduction, and shareholder value enhancement. He also mentioned a measured capacity growth strategy, with the introduction of one to two ships annually starting in 2027, targeting cruise lines within the corporation that demonstrate strong demand.

The partnership between Carnival Corporation and the MEYER Group is set to continue with this new contract, as acknowledged by MEYER Group CEO, Bernd Eikens.

Carnival Corporation & plc has a diverse portfolio of cruise lines, including AIDA Cruises, Costa Cruises, Cunard, Holland America Line, P&O Cruises (Australia), P&O Cruises (UK), Princess Cruises, and Seabourn. This order is the only expected newbuild for the year 2027 and is a part of the company's long-term growth and sustainability strategy.

The information for this report is based on a press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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