• 2021 February 25 10:13

    BC Ferries releases its third quarter results

    BC Ferries released its third quarter results for the fiscal year ending March 31, 2021. The COVID-19 global pandemic continues to have a significant impact on the company’s operations and financial results. During the quarter, BC Ferries carried 2.9 million passengers and 1.6 million vehicles, a decrease of 39.6 per cent and 22.3 per cent, respectively, compared to the same period in the prior year. Year-to-date, the company carried 10.6 million passengers and 5.3 million vehicles, a decrease of 42.1 per cent and 26.9 per cent, respectively, compared to the same period in the prior year.

    As a regulated company, BC Ferries’ allowable average annual fare increases and corresponding earning targets are set by the BC Ferries Commissioner to cover the cost of ferry service, along with required maintenance and vessel, terminal and IT upgrades and replacements, as well as debt servicing.

    The effects of COVID-19 have negatively impacted BC Ferries’ traffic and revenues over the current year. This trend is expected to continue in the near term as the province recovers from the effects of the pandemic.

    In December 2020, BC Ferries received $308 million from the Safe Restart Program, a federal-provincial initiative intended to help provinces and territories safely restart their economies. Assistance to the public transportation sector, including BC Ferries, is a critical part of the BC Safe Restart Plan.

    The goals of the federal-provincial Safe Restart funding are to mitigate BC Ferries’ revenue losses and additional COVID-19-related spending, help restore the level of annual earnings required to maintain service levels, and to keep fare increases to affordable levels through this performance term which ends March 31, 2024. Maintaining this level of earnings also supports the long-term sustainability, reliability and affordability of the ferry system and protects $380 million in essential vessel, terminal and IT investments over this year and next.

    BC Ferries applied nine months’ worth of Safe Restart funding, or $154.8 million, to third quarter revenues. Without this relief, the net loss for the three months ended December 31, 2020 would have been $56.4 million.

    As a result of the funding, BC Ferries recorded net earnings of $98.4 million for the three months ended December 31, 2020, compared to a net loss of $8.3 million in the same quarter in the prior year.

    On a year-to-date basis, BC Ferries’ net earnings were $74.3 million to December 31, 2020. Without federal-provincial Safe Restart funding, the company would have had a net loss of $80.5 million, compared to net earnings of $98.9 million in the same period in the prior year.

    The positive net earnings in the quarter and year-to-date reflect nine months of Safe Restart funding as well as the seasonal nature of the business whereby traffic in the busy spring and summer months provide earnings that are typically offset by losses in the slower fall and winter months.

    “We would again like to acknowledge the important contribution from the federal and provincial governments to address the profound impact COVID-19 has had on transportation and on the ferry system,” said Mark Collins, BC Ferries’ President and CEO. “The Safe Restart funding will protect the long term sustainability of the ferry system to recover our losses and maintain service and future investments in ferry dependent communities.”

    “Our valued employees continue to focus on our core business of delivering efficient service while protecting passengers who rely on us for essential travel,” said Collins. “I can’t thank our staff enough for their dedication and their work to keep our ships and terminals safe, while keeping communities connected during this difficult time.”

    In the three months ended December 31, 2020, operating expenses decreased by $6.7 million or 3.3 per cent ($68.8 million or 10.6 per cent year-to-date) compared to the same period in the prior year, mainly due to reduced round trips on the major routes and the deferral of certain discretionary costs as a result of COVID-19. The expense reduction includes reduced labour costs, fuel consumption, contracted services, depreciation expense and other miscellaneous costs.

    Capital expenditures in the three and nine-months ended December 31, 2020 totalled $41.5 million and $90.8 million, respectively, and were financed in part through net earnings during the nine months. Significant investments included the four Island Class vessels and one Salish Class vessel that were already under construction prior to the pandemic. Given the impact of COVID-19 on the company’s financial position, all capital plans are being reviewed to identify opportunities to defer any expenditures that are not regulatory, security or safety related, or operationally necessary.


2021 April 16

14:25 New rail cargo volumes to and from Stockholm Norvik Port
14:06 Navigation season 2021 opens in Saint-Petersburg
13:12 GTT upgrades its NO96 technology to further reduce the guaranteed Boil Off Rate
12:40 IMO asked to include industry standard on in-water cleaning in its on-going work
12:05 Valenciaport traffic up in March 2021
11:47 Consolidated marine container throughput of Global Ports declined 5.9% in Q1’2021
11:26 Tuapse Sea Commercial Port increased its throughput by 9% in 3M’2021
11:05 The newest ocean cruise ship “Viking Venus” delivered in Ancona
10:34 Rosterminalugol’s coal exports in 3M’21 totaled 6.05 million tonnes
10:12 Crowley begins use of biofuel to power tug Veteran
09:50 Finnish Government proposes amendments to Water Traffic Act
09:27 Oil prices are slightly up
09:09 Baltic Dry Index as of April 15

2021 April 15

18:45 The UAE aims to attain the No. 1 status in Global Food Security Index by 2051
17:58 Public Ferry Terminal in Gdynia to be completed in June
17:35 Tidewater chooses Topsoe’s HydroFlex™ and H2bridge™ technologies for renewable diesel production
16:57 Black Sea Fleet ships go to sea as part of a control check during the winter training period
16:40 Flex LNG and Cheniere enter into time charter party agreements
16:09 Jumbo Shipping and SAL Heavy Lift launch Jumbo-SAL-Alliance
15:44 Wärtsilä caps record-breaking year with scrubber order at Japan Marine United shipyard
15:32 ViaSea Shipping AS based in Norway launches its branch office in Gdynia
15:14 DNV awards world-first Smart notation to CMHI’s offshore rig
15:08 Bunker Weekly Outlook, Week 14, 2021
14:57 The company of the Riga Port produces world-class aluminum high-speed boats
14:36 Servicing Capesize vessels in the port of Riga facilitates access to new cargo and distant markets
14:31 Trafigura to co-sponsor development of MAN Energy Solutions ammonia engine
14:14 NextDecade and Mitsubishi Heavy Industries America sign ESA for carbon capture at Rio Grande LNG project in Texas
13:53 BHP, Oldendorff and GoodFuels successfully complete first trial with biofuel supplied in Singapore
13:35 Sparta III delivered cargo for construction of airfield in Arctic
13:13 UECC floats first of three LNG battery hybrid PCTCs
12:59 Cargo transit potential of Northern Sea Route estimated at several million tonnes per year
12:30 Seaports of Okhotsk Sea and Tatar Strait increased their throughput by 15% in 3M’21
12:11 DEME Offshore and Penta-Ocean establish JV to develop Japan’s offshore wind industry
11:41 Panama Canal Authority postpones planned price hike following calls from shipping industry
11:29 Atomflot estimates technical readiness of icebreaker Sibir at 88%
11:07 Georgia Ports Authority orders 28 Konecranes container cranes as larger ship traffic grows
10:34 BHP, Oldendorff and GoodFuels successfully complete first trial with biofuel supplied in Singapore
10:17 Traffic along the Northern Sea Route may become year-round in the near future – Vladimir Putin
10:16 Damen Shiprepair Amsterdam readies HNLMS Evertsen for voyage to Japan
09:52 Advanced technologies for HES waterproofing, repair and corrosion protection to be discussed at online webinar on April 27
09:33 Oil prices start decreasing after a period of growth
09:15 Baltic Dry Index as of April 14

2021 April 14

18:14 Stockholm Exergi orders Agilon automated warehouse solution from Konecranes
17:41 Throughput of Kaliningrad port in 3M’2021 fell by 13% Y-o-Y
17:41 Alblasserdam’s Container Transferium gets ready for further growth
17:12 ABS publishes guidance on shipping power and propulsion decarbonization technologies
16:53 Throughput of port Vyborg in 3M’2021 rose by 47% Y-o-Y
16:30 The Korean Register publishes technical report for ammonia fueled ships supporting the commercial adoption of ammonia as ship fuel
16:14 Throughput of port Vysotsk in 3M’2021 fell by 5% Y-o-Y
15:56 Throughput of port Primorsk in 3M’2021 fell by 22% Y-o-Y
15:32 GTT receives an order from Hudong-Zhonghua Shipbuilding (Group) Co. Ltd. for the tank design of a new LNG carrier
14:47 Omsk River Port to arrange pilot voyage for grain exports to China by Irtysh river this year
14:25 ABS joins SOFC4Maritime fuel cell development JDP
13:43 Krasnoye Sormovo shipyard launches RSD59 ship Nikolai Leonov built for Alfa LLC
13:22 Wärtsilä signs an agreement with NYK and MTI to evaluate Expert Insight predictive maintenance service
12:59 Port of HaminaKotka throughput in 3M’20201 fell by 2.3% YoY
12:20 Port of Oakland imports up 45 percent in March 2021
12:06 Port of Ust-Luga throughput in 3M’2021 fell by 5% Y-o-Y
11:34 FESCO and NtechLab to collaborate in digital field
11:10 Grimaldi Group buys five ro/pax vessels and two terminals in the ports of Valencia and Barcelona from Armas Trasmediterránea Group