VICTORIA, BC
British Columbia Ferry Services Inc. (BC Ferries) released its financial results for the year ended March 31, 2008.
Consolidated net earnings were $37.1 million for the year ended March 31, 2008, compared to net earnings of $48.8 million before an extraordinary gain the previous year. The decline in net earnings is attributable to the significant cost of new assets that came into service during the year.
As BC Ferries continues to invest all of its retained earnings into the largest asset renewal program in its history, amortization and financing costs will continue to increase. Consequently, the company expects its future earnings will continue to decrease in the near term, before improving. This is consistent with the company’s long-term financial plan.
Revenues for the year increased from $596.3 million to $640.7 million, while operating expenses increased from $528.4 million to $569.6 million. The increase in expenses includes $5.3 million for new safety and training initiatives.
Fourth quarter revenues increased from $119.0 million to $124.2 million compared to the same quarter in the prior fiscal year, while total expenses during the same period increased from $152.2 million to $154.7 million. The company reported a fourth quarter net loss of $30.5 million compared to a net loss of $33.2 million during the same quarter the previous year.
Due to the seasonality of ferry travel, BC Ferries typically generates higher net earnings in the first and second quarters, which are subsequently reduced by net losses in the last two quarters of its fiscal year. The company utilizes the third and fourth quarters to perform upgrades, maintenance and refits, and to undertake mandatory inspections on the majority of its vessels.
Capital expenditures for the year ended March 31, 2008 totalled $452.5 million, compared to $262.6 million the year prior. Expenditures included $382.8 million for new vessels, vessel upgrades and vessel modifications, as well as $54.5 million for terminal upgrades.
“This past year, we made significant capital investments in our fleet, including almost $320 million of a $542 million project for our three new Super C-class ships,” said BC Ferries President & CEO David L. Hahn. “These new ships, which are on time and considerably under budget, will provide a world-class travel experience for our customers for decades to come.”
British Columbia Ferry Services Inc. (BC Ferries) released its financial results for the year ended March 31, 2008.
Consolidated net earnings were $37.1 million for the year ended March 31, 2008, compared to net earnings of $48.8 million before an extraordinary gain the previous year. The decline in net earnings is attributable to the significant cost of new assets that came into service during the year.
As BC Ferries continues to invest all of its retained earnings into the largest asset renewal program in its history, amortization and financing costs will continue to increase. Consequently, the company expects its future earnings will continue to decrease in the near term, before improving. This is consistent with the company’s long-term financial plan.
Revenues for the year increased from $596.3 million to $640.7 million, while operating expenses increased from $528.4 million to $569.6 million. The increase in expenses includes $5.3 million for new safety and training initiatives.
Fourth quarter revenues increased from $119.0 million to $124.2 million compared to the same quarter in the prior fiscal year, while total expenses during the same period increased from $152.2 million to $154.7 million. The company reported a fourth quarter net loss of $30.5 million compared to a net loss of $33.2 million during the same quarter the previous year.
Due to the seasonality of ferry travel, BC Ferries typically generates higher net earnings in the first and second quarters, which are subsequently reduced by net losses in the last two quarters of its fiscal year. The company utilizes the third and fourth quarters to perform upgrades, maintenance and refits, and to undertake mandatory inspections on the majority of its vessels.
Capital expenditures for the year ended March 31, 2008 totalled $452.5 million, compared to $262.6 million the year prior. Expenditures included $382.8 million for new vessels, vessel upgrades and vessel modifications, as well as $54.5 million for terminal upgrades.
“This past year, we made significant capital investments in our fleet, including almost $320 million of a $542 million project for our three new Super C-class ships,” said BC Ferries President & CEO David L. Hahn. “These new ships, which are on time and considerably under budget, will provide a world-class travel experience for our customers for decades to come.”
The first new ship in the series, the Coastal Renaissance, began service on March 8, 2008 on the Departure Bay – Horseshoe Bay route, with the Coastal Inspiration beginning service later this month on the Duke Point – Tsawwassen run and the Coastal Celebration entering service on the Swartz Bay – Tsawwassen route this fall.
“In addition to our major fleet renewal program, we are continuing to invest in our terminals to replace aging marine structures and ensure we are providing the best in safety and service for our customers,” said Hahn. “This past year, we began a $9 million terminal expansion project at Swartz Bay and continued a $41 million project at Departure Bay to expand the holding compound and add the new Nanaimo Quay, which will open this summer to offer our customers a wide range of food and retail options.”
BC Ferries continues to be concerned about the unprecedented level of fuel prices and the resulting impact on the cost of operating the system and on customers’ travel decisions. If oil prices remain at record high levels, BC Ferries anticipates the need for fuel surcharges to be implemented in the near future.
BC Ferries, one of the largest ferry operators in the world based on passengers transported annually and transportation infrastructure, carried more than 21 million passengers and 8 million vehicles during the fiscal year ended March 31, 2008. BC Ferries provides frequent year-round ferry transportation services to the West Coast of Canada on 25 routes, currently supported by 37 vessels and 47 terminals, and also manages other remote routes through contracts with independent operators.
BC Ferries’ full financial statements, including notes and Management’s Discussion and Analysis, are filed on SEDAR and will be available at http://www.sedar.com/.
“In addition to our major fleet renewal program, we are continuing to invest in our terminals to replace aging marine structures and ensure we are providing the best in safety and service for our customers,” said Hahn. “This past year, we began a $9 million terminal expansion project at Swartz Bay and continued a $41 million project at Departure Bay to expand the holding compound and add the new Nanaimo Quay, which will open this summer to offer our customers a wide range of food and retail options.”
BC Ferries continues to be concerned about the unprecedented level of fuel prices and the resulting impact on the cost of operating the system and on customers’ travel decisions. If oil prices remain at record high levels, BC Ferries anticipates the need for fuel surcharges to be implemented in the near future.
BC Ferries, one of the largest ferry operators in the world based on passengers transported annually and transportation infrastructure, carried more than 21 million passengers and 8 million vehicles during the fiscal year ended March 31, 2008. BC Ferries provides frequent year-round ferry transportation services to the West Coast of Canada on 25 routes, currently supported by 37 vessels and 47 terminals, and also manages other remote routes through contracts with independent operators.
BC Ferries’ full financial statements, including notes and Management’s Discussion and Analysis, are filed on SEDAR and will be available at http://www.sedar.com/.
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