Consolidated net earnings plummet 22 per cent at BC Ferries
British Columbia Ferry Services (BC Ferries) released its year-end results yesterday, with consolidated net earnings of CA$59.9 million for fiscal 2018, down 22 per cent year-on-year from CA$77.4 million.
Revenues for fiscal 2018 increased CA$39.7 million, from CA$859.3 million to CA$899.0 million, primarily due to higher traffic levels and retail sales.
As a result of the higher traffic levels, total operating expenses increased CA$56.5 million from CA$726.2 million to CA$782.7 million and net earnings decreased as costs grew faster than revenues.
The company also welcomed three new Salish-class vessels into service. These initiatives resulted in a one-time increase in fuel consumption, labour and training related transition costs.
On June 12, 2018, BC Ferries announced that due to current world fuel market conditions, the company would remove the fuel rebates currently in place on June 27, 2018.
Fuel rebates of 2.9 per cent for the major and minor routes and 1.9 per cent for the northern routes have been in place since the spring of 2016.
BC Ferries provided over 174,000 sailings, 2,962 more round trips than required under the Coastal Ferry Services Contract and 1,190 more round trips compared to the prior year.