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

Kelowna man charged with killing wife and two daughters returns to court

Jacob Daniel Forman appeared before B.C. Supreme Court today

New Penticton/Kelowna transit route ready to roll out

Route 70 Penticton/Kelowna will provide a direct trip to Kelowna from Penticton and Summerland

Kelowna dog ‘Alice’ to get surgery thanks to BC SPCA crowdfunding

With the surgery, Alice’s prognosis is ‘excellent,’ stated the BC SPCA

UBC Okanagan partners with Blood Services Canada to educate, recruit donors

Nursing students from Okanagan university take to community events to inform public

Suspicious item forces 47 to evacuate plane at Kelowna airport

Kelowna RCMP continue investigation of suspicious item on airplane

B.C. seizes 1.5M grams contraband tobacco, down from 5.75M grams the year prior

The 2019-2020 seizures were a sharp drop compared to the 2018-2019 year,

B.C. manhunt suspects left cellphone video before they died: family

Family member says Kam McLeod, Bryer Schmegelsky recorded final wishes

B.C. Speaker tight-lipped about aide’s legislature security tour

B.C. Liberals question Alan Mullen’s drive across Canada, U.S.

Okanagan-Shuswap weather: High temperatures with mix of sun and cloud

Your weather report for Tuesday, August 20th, 2019.

Kayaks, paddleboards stolen from tenants at Shuswap resort

Thefts reported to have occurred overnight on Wednesday, Aug. 14

B.C. sets rules for ride hailing, same minimum fee as taxis

Larger operating areas seen as threat by cab companies

Kamloops man arrested for smashing windows and cars

The man barricaded himself in a motel room

Most Read