Carnival to build three LNG fueled cruise ships at Meyer

Arnold Donald, CEO of Carnival Corporation & plc: "This is also an important step in our fleet enhancement plan" Arnold Donald, CEO of Carnival Corporation & plc: "This is also an important step in our fleet enhancement plan"

SEPTEMBER 6, 2016 — Carnival Corporation & plc has signed a memorandum of agreement with shipbuilders Meyer Werft and Meyer Turku covering delivery of three additional next-generation cruise ships that will be fully powered by Liquefied Natural Gas (LNG), the cleanest burning fossil fuel in the world. The shipbuilding agreements are subject to several conditions, including satisfactory financing.

"We are proud to be at the forefront of introducing LNG-powered ships to the cruise industry, working with our partners to achieve shipbuilding breakthroughs like this that will help us produce the most efficient and sustainable ships we have ever built," said Arnold Donald, CEO of Carnival Corporation & plc. "This is also an important step in our fleet enhancement plan that enables us to execute on our long-term strategy of measured capacity growth over time, while delivering innovative new ships that further elevate our already great guest experience. Every time we launch a new ship, we have a new opportunity to create excitement and show consumers why cruising is a great vacation at an exceptional value, especially for those who typically consider land-based vacations."

Two of the new LNG-fueled ships are designated for the world's most popular cruise brand, Carnival Cruise Line, and will be built by Meyer Turku at its shipyard in Turku, Finland, with delivery dates expected in 2020 and 2022.

The new ship for P&O Cruises UK will be built by Meyer Werft at its shipyard in Papenburg, Germany, with an expected delivery date in 2020.

Bernard Meyer, managing partner of Meyer Werft, with roots dating back to its founding in Germany in 1795, said: "We are excited to welcome P&O Cruises back to Meyer Werft in Germany and Carnival Cruise Line back to Meyer Turku in Finland. These new ships will be built in our most modern and environmentally friendly facilities, and we are very proud to design, build and deliver these ships that provide breakthroughs in innovation and for the environment."

In conjunction with the order, the delivery dates for the newbuilds for Germany-based AIDA Cruises and Italy-based Costa Cruises for 2020 will be pushed back to 2021 to allow the company to more effectively allocate measured capacity growth across its ten global cruise brands.

In total, the company now has agreements in place to build seven LNG-fueled cruise ships for four of its brands. The first of these ships are expected to be in service for AIDA Cruises and Costa Cruises in 2019.

Based on Carnival Corporation's next-generation "green cruising" ship design, these new vessels will be part of the first generation of cruise ships to be fully fueled by LNG, using LNG to generate 100 percent of the ship's power both in port and on the open sea.

As part of its fleet enhancement plan, Carnival Corporation has already taken delivery of three new ships in 2016 for its AIDA Cruises, Carnival Cruise Line and Holland America Line brands, and plans to launch the all-new Seabourn Encore in December 2016. Including Seabourn Encore and the three new ships announced today for Carnival Cruise Line and P&O Cruises UK, Carnival Corporation has a total of 18 new ships scheduled to be delivered between 2016 and 2022.

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