) has recently formed an alliance with the U.S. Environmental
Protection Agency (EPA), the U.S. Coast Guard and Transport
Canada to introduce an exhaust gas cleaning technique in its
ships. Carnival is likely to invest $180 million for the
installation. The technology will substantially reduce the amount
of sulfur and black carbon in the emission from the cruise ships
and marine vessels, thereby reducing air pollution.
Carnival is the first in the cruise industry to deploy
"scrubber technology" which is generally used by power plants,
factories and large vehicles. Under the technology, the company
will be using low-sulfur marine gas oil.
Carnival is currently awaiting the approval of the flag states
to test the new system. Primarily, the company will be installing
the system across 32 ships under Carnival Cruise Lines, Holland
America Line, Princess Cruises and Cunard brand. In this regard,
the company will be redesigning and improving the operations of
its ship's engine rooms over the next three years.
The new system will bring in an era of pollution control thus
improving public health standards. Carnival expects to use the
technology in all of its ships in the near future to efficiently
reduce fuel costs and raise profitability.
The Zacks Rank #4 (Sell) company has been striving hard for
the last few quarters to reduce its fuel consumption. The company
is making itinerary changes to curtail fuel costs. Owing to the
company's fuel saving effort, it has saved 5 cents per share in
the second quarter of 2013. It is on track to achieve its target
of reducing cumulative consumption by 23% from 2005 through
Some other companies in the leisure and recreational services
industry that are performing well include
Rick's Cabaret International Inc.
Cedar Fair, L.P.
International Speedway Corp.
). Rick's Cabaret has a Zacks Rank #1 (Strong Buy), while Cedar
Fair and International Speedway carry a Zacks Rank #2 (Buy).
CARNIVAL CORP (CCL): Free Stock Analysis
CEDAR FAIR (FUN): Free Stock Analysis Report
INTL SPEEDWAY (ISCA): Free Stock Analysis
RICKS CABARET (RICK): Get Free Report
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