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Algoma Central Corporation Reports 222% Rise in Operating Results

Friday, 09 August 2019 | 00:00

Algoma Central Corporation, a leading provider of marine transportation services, announced its results for the three and six months ended June 30, 2019.

All amounts reported below are in thousands of Canadian dollars, except for per share data and unless otherwise noted. Second quarter 2019 highlights include:

Product Tanker operating earnings grew 222% which was driven by high customer demand and having two additional vessels operating in the quarter compared to last year. During the quarter, the Company took advantage of attractive asset values in international tanker markets to add the Algoterra to our Canadian fleet.
The Ocean Self-Unloader segment grew earnings by 85% based on strong Pool performance and the acquisition of three vessels that began operating for Algoma in the CSL Pool in June.
Net earnings and basic earnings per share for the 2019 second quarter were $22,114 and $0.58 compared to $14,445 and $0.38, respectively, in 2018. Profit was higher in the quarter as a result of an increase in operating earnings and a foreign currency gain versus a loss reported in 2018.
EBITDA was $52,690 in the 2019 second quarter versus $43,066 for the same period in 2018. EBITDA increased in Product Tankers and in Ocean Self-Unloaders, partially offset by decreases in Domestic Dry-Bulk and in Global Short Sea Shipping.

Three Months
Ended


Nine Months
Ended


For the periods ended June 30

2019


2018


2019


2018


Net earnings (loss)


$ 22,114


$ 14,445


$ (687)


$ 5,303


Depreciation and amortization


21,268


17,027


40,121


31,824


Interest and taxes


10,482


6,849


5,118


5,550


Other


(1,174)


4,745


1,221


(3,809)


Consolidated EBITDA


$ 52,690


$ 43,066


$ 45,773


$ 38,868


“Since last fall we have added six new vessels into our core businesses, each of which have been strong contributors to our year to date earnings,” said Gregg Ruhl, President and CEO of the Company. “These new vessels have integrated well into the Algoma fleet and we look forward to continued strong results with the added capacity going forward,” added Mr. Ruhl.

Consolidated revenue for the 2019 second quarter was $159,169, an increase of 14% compared to $139,442 reported for the same period in 2018. The increase was driven by the additional two vessels in operation and high customer demand in the Product Tanker segment and the acquisition of three vessels late in the quarter and strong Pool performance in the Ocean Self-Unloader segment. Domestic Dry-Bulk results were lower due to having one less vessel in operation, partially offset by a strong pricing environment on the Great Lakes – St. Lawrence Seaway.

There was a 53% increase in net earnings in the quarter to $22,114, as earnings from our core businesses offset increased interest expense and lower joint venture results. Earnings for the 2018 quarter included a foreign exchange loss of $4,952 compared to a gain of $1,534 in the current year quarter.

The second quarter MD&A includes further details.

During the 2019 second quarter the Company paid $29 million in a special dividend and invested $153 million on vessel acquisitions, financed by the Company’s bank credit facilities.

Algoma owns and operates the largest fleet of dry and liquid bulk carriers operating on the Great Lakes – St. Lawrence Waterway, including self-unloading dry-bulk carriers, gearless dry-bulk carriers and product tankers. Algoma also owns ocean self-unloading dry-bulk vessels operating in international markets and a 50% interest in NovaAlgoma, which owns and operates a diversified portfolio of dry-bulk fleets serving customers internationally.

Full Report

Source: Algoma Central Corporation

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