BC Ferries sets fiscal records: $12M net earnings for the first quarter of fiscal 2020

Ships sailed 700 more round trips compared to 2018

  • Aug. 15, 2019 4:45 p.m.

Rick Stiebel/News Staff

BC Ferries sailed into uncharted waters by hitting a historic high watermark for the first fiscal quarter this year.

According to an Aug. 15 BC Ferries news release, passenger and vehicle traffic numbers are the highest the company has ever experienced in the first quarter of a fiscal year.

Net earnings for the first quarter of fiscal 2020 were $12.2 million, more than double the $6 million total for the same quarter of the previous year.

“Net earnings are essential for us to fulfill our commitment to support the growing needs of coastal communities,” BC Ferries president and CEO Mark Collins said in the release. “With the public interest in mind, we reinvest all earnings back into the ferry system. This is evidenced by our $26 million of investments this quarter which is more than our $12.2 of net earnings.”

That enables expanded service, larger ships, upgraded terminals, debt reduction and financial sustainability, Collins added.

READ ALSO: BC Ferries not as full as reported due to ability to book consecutive sailings

BC Ferries provided more than 700 additional round trips compared to the same period last year to accommodate higher traffic volumes and deliver the increased service levels agreed to with the province. The company also introduced the Northern Sea Wolf into service and brought the upgraded Spirit of Vancouver Island back into service, which contributed to a 7.3 per cent increase in revenue and a corresponding 5 per cent increase in expenses, compared to the first quarter of the previous fiscal year.

The company invested $26 million focused on replacing ships and upgrading terminals as part of a $3.9 billion 12-year capital plan. “Our capital plan is vital to maintain an efficient ferry service that meets the increasing demands on the system,” Collins said. Half the fleet must be replaced during the next 15 years to incorporate clean technology and increase capacity, he noted.

At the start of fiscal 2019, which began April 1, 2018, BC Ferries reduced fares, with partial funding from the province, on the minor and northern routes by 15 per cent as part of its continued focus on fare affordability. Fares on the three Metro Vancouver-Vancouver Island routes remained constant, and no fare increases will be introduced in fiscal 2020.

READ ALSO: BC Ferries service contract included added funds for fare affordability, added routes

“Focusing on cost improvements in fuel, maintenance, labour and increasing diversified revenues are ways we reduce upward pressure on fares,” Collins said.

Between April 1 and June 30 of this year, BC Ferries delivered more than 45,000 sailings for an average of 497 a day. There was an increase of 3,268 more round trips than required under the Coastal Ferry Services Contract. BC Ferries carried 5.8 million passengers, an increase of 2.2 per cent from the same quarter in the previous year. The total of 2.4 million vehicles marks an increase of 2. 5 per cent for the same period.

For a look at the full report, financial statements and Management’s Discussion Analysis, sail over to sedar.com.

rick.stiebel@goldstreamgazette.com

 

Just Posted

Student artwork on display in ‘Well Lit’ installation

Thoughtful Place Design, 49th Parallel, and Festival of Lights came together to showcase student art

Ladysmith set to star in new Syfy series: Resident Alien

Ladysmith will play the role of Patience, Colorado in the series

Ladysmith wins ‘Brownie’ Reach Out award for communication of Waterfront Plan

The Town of Ladysmith has received national recognition for the successful public… Continue reading

Nanaimo Regional General Hospital raising funds for new surgical suite

The new suite will reduce endoscopy wait times for residents from Ladysmith to Bowser

Belair Street development ready for next steps following public hearing

Fred Green’s Belair Street development cleared another hurdle at a Town of Ladysmith public hearing

VIDEO: Boys help rescue Cariboo bear cub

The cub, weighing just 24lbs, has been taken to wildlife sanctuary in Northwest B.C. for the winter

‘Things haven’t changed enough:’ Ecole Polytechnique anniversary prompts reflection

Fourteen women were fatally shot by a gunman at the Montreal school on Dec. 6, 1989

Bear raids freezer, gorges on Island family’s Christmas baking

Hungry bruin virtually ignored meat and fish, focused, instead, on the sweets

B.C. pharmaceutical company’s stocks double in value after successful lupus drug trial

More than 40 per cent of patients using voclosporin saw improvements in kidney function

Second warning on romaine lettuce from California region as another E. coli case reported

Two cases of E. coli have been reported in relation to the illness in the U.S.

Residents in B.C. city could face 133% tax hike in ‘worst case’ lawsuit outcome: report

An average home could see a tax increase of $2,164 in one year

B.C. Transit finds 28 used fareboxes online, saves $300,000

‘Someone joked maybe we can buy used fareboxes on eBay,’ CEO says

Many of Canada’s working poor can’t afford lawyers, don’t qualify for legal aid

One lawyer says many people earn too much to qualify for legal aid, but not enough to really live on

Economy lost 71,200 jobs in November, unemployment rate climbs to 5.9%

Jobless rate is at its highest since August 2018, when it hit 6%

Most Read