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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

 

Comments are closed

Just Posted

Semiahmoo Peninsula girls to host Black Lives Matter fundraiser

‘We are doing this because the world is full of systemic racism,’ organizer Sabine Lapointe said

Community fruit harvest program returns to Surrey, White Rock

Sources will send a team to harvest fruit trees, so less goes to waste

Semi and BMW collide on South Surrey highway

At least one person to hospital, both vehicles sustained significant damage

Intent of killing at centre of Surrey man’s West Kelowna murder trial

B.C. Supreme Court Justice Allison Beames is anticipated to return with her decision in August

East White Rock crosswalk, speed bumps proposed

Report on costs and implications requested by council

B.C. accommodators need phone lines to light up as in-province travel given green light

Travel restrictions during the COVID-19 pandemic have decimated the tourism and hospitality industries

B.C. extends income assistance exemption for COVID-19

Provincial program to match Ottawa’s CERB, student pay

Broadway veteran Nick Cordero dies from coronavirus complications

During Cordero’s hospitalization, Kloots sent him daily videos of her and their 1-year-old son, Elvis,

Northern communities welcome tourists as province opens to in-B.C. travellers

Officials have asked British Columbians to be careful as they travel this summer

300 Cache Creek residents on evacuation alert due to flood risk as river rises

Heavy rainfall on Canada Day has river rising steadily, threatening 175 properties

Friends, family remember victim of Langley possible triple-homicide fire at memorial

Memorial held for one the of three found dead at a house fire in Langley Meadows last month

Most Read