B C Ferries announced some impressive net earnings for the six month period ending September 30th, helped by an insurance pay out of 61.3 million dollars for the Queen of the North, the Ferry Corporation had net earnings of $145.1 million compared to $75.6 million in the same period a year ago.
This bit of economic good news came despite the fact that there was a reduction in service on the North coast and at times no service in the area. David Hahn, President of B. C. Ferries says that the second quarter results will allow the Ferry Corporation to continue with its plans for ferry replacements and infrastructure development.
The Daily News featured the story on the front page of the Friday paper.
BC FERRIES’ BOOKS SHOWING PROFITS
By Leanne Ritchie
The Daily News
Friday, December 1, 2006
Page one
The sinking of the Queen of the North continues to provide a robust bottom line for B.C. Ferries for the first half of the 2006-07 fiscal year. As a result of the insurance money of $61.3 million reported in the first quarter of the year, net earnings for the six-month period that ended Sept. 30, 2006 were $145.1 million, compared to $75.6 million for the same six-month period last year.
“These second quarter earnings allow us to continue our extensive capital renewal program for our fleet, terminals and infrastructure,” said B.C. Ferries’ president and CEO, David L. Hahn.
“Over the next five years, we are adding seven new ships to our fleet at a cost of approximately $900 million and investing more than $200 million in our terminals to ensure the ongoing safety and efficiency of our operations.”
Among those ships are the MV Sonia, a two-year-old vessel that was acquired for $50.9 million Canadian, and which will undergo significant modifications at Victoria Shipyards this winter to improve amenities and meet safety requirements needed to operate in Canadian waters.
The total cost for the Greek vessel, including all duties and taxes, will be approximately $103 million.
The majority of the costs won’t be realized until the next quarter.
For the three months ended Sept. 30, 2006, total revenue increased by 2.2 per cent to $202.7 million, while total expenses decreased by 2.4 per cent to $133.8 million, compared to the same period last year.
The decrease in expenses includes $1.8 million in interest rate support from the federal government’s structured finance facility program for work done on three vessels in Canadian shipyards.
The total cost of the upgrades on these vessels was approximately $89 million.
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