Carnival Corp expects the combined value of two more ships it plans to sell to fall by hundreds of millions of dollars.
The move is the latest blow for the Arnold Donald-led Miami cruise major as the Covid-19 pandemic has led to an industry-wide pause in operations and led to an unprecedented effort to sell off vessels.
On 23 July, Carnival's senior management concluded that the values of the two unidentified ships are "no longer recoverable" in comparison to estimated future earnings, according to a regulatory filing.
"Consequently, and in combination with other ships and notes receivables with recoverability impacted by the current environment, we expect to record non-cash impairment charges during the third quarter of 2020," Carnival said.
"Although the actual amount of the charges has not yet been finalised, we expect the aggregate impairment charge to be in the range of $600m to $650m."
The company would not identify the latest ship sales.
"We have not announced these sales yet," spokesman Roger Frizzell told TradeWinds.
Carnival said the impairments should not lead to any material cash expenditures as it possibly eyes further asset sales.
"We plan to continue to evaluate other options to maximise our liquidity and best position our fleet for future operations," the company said.
Carnival has earmarked another nine ships for sale in an effort to become a "leaner" company, in addition to another four already sold before the Covid-19 pandemic.
"These decisions are intended to align the fleet with the expected phased restart of guest cruise operations while also generating cost savings," Carnival said.
Sell, sell, sell
TradeWinds has previously reported these asset divestment plans and identified all 13 ships from either information provided by Carnival or VesselsValue.
Asked if one of these ships — a Holland America Line vessel — might be headed to Blue World Voyages after images of a similar vessel emerged in marketing materials for the new cruise outfit, Carnival and the would-be buyer declined to comment.
TradeWinds reported on Wednesday that Carnival may be looking to shed its Cunard and Seabourn brands.
The cruise juggernaut has found buyers for most of the ships as it looks to trim its fleet amid unprecedented losses brought about by Covid-19.
Carnival's shares, which trade on the New York Stock Exchange under the ticker symbol CCL, ticked up 2% to $14.66 just before trading closed on Wednesday.
Eric Martin contributed to this story.