VANCOUVER – BC Ferries had a great fiscal year in 2015, according to their latest financial performance report.
The net earnings for fiscal 2015 were a whopping $49.1 million, compared to the previous year’s net earnings of $18 million.
“It’s a combination of factors – higher traffic, increased revenues, and a strong cost containment program,” said Deborah Marshall, Executive Director of Public Affairs at BC Ferries, when asked about the reason behind the high net earnings.
The strong financial performance comes as the province anticipates a projected inflation in the B.C. economy beginning in 2016.
“For customers, the direct benefit of the company’s strong financial performance will be realized…with annual fare increases set at or below projected inflation,” said Mike Corrigan, President and CEO of BC Ferries.
Higher traffic levels, impact of fuel surcharges, and higher tariffs have also led to an increase in revenue from $800.2 million to $841.1 million.
Traffic was much higher this year with BC Ferries experiencing a 0.6 per cent increase in vehicle traffic, and a 0.5 per cent increase in passenger traffic compared to fiscal 2014.
Corrigan commented, “strong financial results are essential to maintain sustainable operations, meet our debt covenants, and to maintain our current strong investment-grade credit rating to ensure financing is affordable.”
Operating expenses had an $8.2 million increase from $714.3 million to $722.5 million as well, mainly due to increases in maintenance and depreciation costs.