Friday, August 26, 2011

BC Ferries loses $5.5 million in first quarter, 400 sailings to be cut

BC Ferries announced its first quarter results on Aug. 24, 2011. The numbers are nothing to smile about. With net losses at $5.5 million for the first three months ending on June 30, 2011 it's a stark contrast to the net earnings of $0.9 million in the first quarter of 2010.

According to CBC News, BC Ferries plans to cut up to 400 sailings a year and lay off staff on its major routes. Click on to watch the video.

BC Ferries reports that first quarter revenues for 2011 decreased by 1.8 percent to $186.7 million. In the first quarter, revenues decreased by 1.8 per cent to $186.7 million, with total expenses increasing 1.5 per cent to $192.2 million, compared to the first quarter of last fiscal year. BC Ferries says the increase in expenses is largely attributed to fuel, an actuarial valuation of employee benefits, as well as amortization expense.

Capital expenditures in the first three months ending June 30, 2011 totaled $25.7 million:
$10.7 million - vessel upgrades and modifications
$6.9 million - terminal marine structures
$4.1 million - terminal and building upgrades and equipment
$4.0 million - information technology
In the first quarter of fiscal 2012, BC Ferries experienced a decline of 3.3 per cent in
vehicle traffic and 2.9 per cent in passenger traffic compared to the same quarter last year. According to BC Ferries, it's the largest first quarter year-over-year decline in passenger traffic in recent years, and is a twenty-year low. Vehicle traffic is at an eleven-year low. BC Ferries doesn't anticipate a turnaround in the erosion of traffic in the foreseeable future, and says the year end loss could be significantly higher.

BC Ferries at Esquimalt Graving Dock
Photo from Kenmore Air by Sue Frause