VANCOUVER – BC Ferries released their second quarter results on Friday with net earnings of $76.4 million and $90.3 million, for three and six months respectively, which is up from $64.3 million and $68.6 million in 2013.
The second quarter ended on Sept. 30 and in a release BC Ferries says these earning reflect the increased traffic on major routes, growth in businesses and higher ferry transportation fees, lower financing costs and their annual fare adjustment.
“It’s important to note that due to the seasonality of ferry travel, we typically generate higher net earnings in the first and second quarters, which are subsequently reduced by net losses in the last two quarters of the fiscal year,” says Mike Corrigan, BC Ferries’ president and CEO, in a release. “Traffic volumes are much higher in the spring and summer months, and in the fall and winter months, traffic drops-off at a time when we must make substantial investments in our vessels and terminals during the refit season to maintain a safe, reliable service.”
Total revenue for June 30 to Sept. 30 increased from $271.5 million to $284.2 million compared to the same time period in 2013. Operating costs also increased from $189.2 million to $192.6 million. From April 30 to Sept. 30 revenue was up from $471.4 million to $497.3 million.
“Over the next 12 years, we plan to invest over $3 billion to replace aging vessels, marine structures, information technology systems and other capital assets to ensure the long-term sustainability of the coastal ferry system,” says Corrigan. “All profits we realize are invested in the future of the company and help fund capital initiatives such as new fuel efficient vessels and new systems that will offer customers opportunities for discounted fares for off-peak travel times and the ability to book in advance without a reservation fee.”
From June 30 to Sept. 30, there were 3,000 sailings less than during the same period in 2013, which is a result of adjustments announced in February. Vehicle traffic was slightly lower overall, but passenger traffic was up in the first quarter and then lower in the second. On the major routes, vehicle traffic increased 0.5 per cent and passenger traffic increased 0.9 per cent.
Comments