BC Ferries releases second quarter results
BC Ferries released its second quarter results for the three months ended September 30, 2019.
During the quarter, BC Ferries provided over 48,000 sailings, carrying 7.7 million passengers and 2.9 million vehicles. Passenger traffic decreased by 1.5 per cent, while vehicle traffic increased by 0.1 per cent compared to the same quarter in the prior year. Year-to-date, BC Ferries has carried 13.5 million passengers and 5.3 million vehicles, an increase of 0.1 per cent and 1.2 per cent, respectively, compared to the same period in the prior year.
The company’s net earnings for the second quarter of fiscal 2020 were $95.0 million, compared to net earnings of $90.9 million for the same quarter of the previous year. Year-to-date, since April 1, 2019, net earnings were $107.2 million, $10.3 million higher than in the same period in the prior year. Due to the seasonality of ferry travel, net earnings in the first and second quarters are typically reduced by net losses in the last two quarters of the fiscal year when routine vessel maintenance is scheduled and traffic declines.
“All net earnings are reinvested back into the coastal ferry system, which is critical to ensure we continue to operate a resilient and affordable service,” said Mark Collins, BC Ferries’ President & CEO. “It appears that the traffic growth has reached its peak and, coupled with the recent price cap ruling, this makes prioritizing capital expenditures even more important. We engage with the communities we serve to prioritize our capital investments and levels of service. We are focused on a safe, reliable and sustainable system to serve our customers over the long term.”
All net earnings are used to the benefit of ferry users including: Investing in infrastructure such as new vessels and terminals; Improving the service, including increasing the number of sailings provided on a number of routes; Offering discounts, reducing and freezing fares to provide more affordable travel; Minimizing borrowing to lower the interest paid on debt; Strengthening the ability to weather challenging economic conditions including weak traffic years.
“Our 12-Year Capital Plan anticipates investing $3.9 billion to ensure system capacity, operational efficiency, resiliency and flexibility – all essential for efficient and sustainable operations,” said Collins. “Our Clean Futures Plan outlines our strategy to reduce greenhouse gas emissions by replacing carbon intensive fossil fuels with clean energy. Ferry users expect us to both reinvest in the future and protect the pristine environment in which we operate.”
Capital expenditures in the three and six months ended September 30, 2019 totalled $29.9 million and $55.8 million respectively. Significant investments include the new Island Class vessels, Spirit Class mid-life upgrades, customer experience program, Texada Island wingwall replacement and various other projects.