Canadian ferry operator British Columbia Ferry Services (BC Ferries) recorded a 12.7 percent increase in its net income for the quarter ended September 30, 2016, which went up to CAD 95.2 million (USD 70.6 million) from CAD 84.5 million seen in the same period last year.
Total revenue for the three-month period ended September 30, 2016 rose from CAD 280.6 million to CAD 298.9 million compared to the second quarter of 2015, mainly due to increases in traffic, according to the company.
Net income for the six-month period ended September 30, 2016 amounted to CAD 122.2 million, compared to CAD 103.3 million in the first half of the 2015 fiscal year. Total revenue for the six-month period CAD 518.1 million, up from CAD 489.6 million in the prior year.
“Traffic numbers continued to increase during the summer,” Mike Corrigan, BC Ferries’ President and CEO, said, adding that “it’s important for us to achieve positive financial results, as we need to continuously invest in our infrastructure.”
“Our profits will help finance our new Salish Class vessels which will enter service next year, as well as the mid-life upgrade project for our two Spirit Class vessels including conversion to dual-fuel, so they can operate on natural gas or marine diesel,” Corrigan further said.
During the three months ended September 30, 2016, BC Ferries said it provided over 46,000 sailings. In addition, the company’s ferries carried 7.4 million passengers and 2.7 million vehicles, an increase of 4.8 percent and 5.1 percent, respectively, compared to the same quarter in the prior year.
Subsequent to the quarter end, BC Ferries conditionally accepted on November 21, 2016 the new vessel, the Salish Orca from Remontowa Shipbuilding S.A. of Gdansk, Poland. The newbuilding is scheduled to arrive in British Columbia in January 2017.
On November 22 and November 25, 2016, BC Ferries drew down CAD 39 million and CAD 6 million respectively for a total of CAD 45 million, under the export loan agreement with KfW IPEX-Bank GmbH, to partially finance the purchase of the Salish Orca.