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

Skeena Métis Association encouraging Northwest B.C. Métis families to self-identify

Out of 5,760 students in SD82, only six are recognized as Métis, association says

B.C. First Nation Chief Ed John faces historic sex charges

John served as minister for children and families under then-premier Ujjah Dosanjh

LNG Canada project gradually taking shape

Extensive worker camp now being assembled

Road to Telegraph Creek open during limited hours

All-wheel drive vehicles are permitted from 10 a.m. to 4 p.m. daily

Cullen gets $89,000 in post-MP severance

At 55, the former MP will also be eligible for an $82,000 per annum pension

VIDEO: Disney Plus adds disclaimer about racist stereotypes

Disney’s disclaimer is a good way to begin discussion about the larger issue of racism

First Nations ‘optimistic’ about road upgrades after Horgan visits site of fatal bus crash

Premier travelled Bamfield Main road, where bus flipped last September and two students were killed

Princeton couple pays for dream vacation with 840,000 grocery store points

It’s easy if you know what you are doing, they say

B.C. man facing 18 charges after hidden camera found in Kelowna winery washroom

The camera was found at Summerhill Winery on Aug. 23

No new rules needed to ensure timely youth justice, Supreme Court says

Charter of Rights and Freedoms says someone charged with an offence has the right to be tried within a reasonable time

Seguin lifts surging Stars to 4-2 win over Canucks

Dallas is 6-0-1 in last seven outings

B.C. government working with RCMP to address $10 million in budget cuts

Public Safety Minister Mike Farnworth issues statement following report of RCMP cost-cutting

‘City that protects rapists’: Sexual assault survivor slams Kelowna mayor for defending RCMP

Heather Friesen spent the morning handing out flyers around city hall calling out the mayor

Most Read