Carnival Corporation launches 3-year SEA Change Program

   June 27, 2023 ,   Cruise Industry

Carnival Corporation & plc has launched the SEA Change Program, a set of performance targets aimed at achieving strategic goals by 2026. The program includes the following objectives:

Sustainability: Carnival aims to reduce carbon intensity by over 20% compared to 2019 levels, surpassing its previously stated goal of achieving this reduction by 2030. This demonstrates the company's commitment to fuel efficiency and environmental responsibility.

EBITDA: Carnival targets a 50% increase in adjusted EBITDA per ALBD (Available Lower Berth Day) compared to the June 2023 guidance. This represents the highest level in nearly two decades, reflecting the company's focus on improving financial performance.

Adjusted ROIC: The company aims for a 12% adjusted Return on Invested Capital (ROIC), more than doubling the performance from 2023 to 2026. This measure excludes goodwill and intangibles to provide a meaningful comparison to historical performance.

Additionally, Carnival aims to approach investment-grade leverage metrics by the end of 2026, indicating its focus on maintaining financial stability.

To achieve these targets, Carnival plans to maintain measured net capacity growth of less than 2.5% annually from 2023. The company will continue implementing various initiatives across its portfolio to drive net yield growth, maintain cost efficiency, enhance fuel efficiency, improve margins, and generate adjusted free cash flow. Carnival believes that increased cash flow will enable it to reduce debt over time.

Overall, the SEA Change Program underscores Carnival's commitment to sustainability, financial performance, and long-term growth.