Algoma Central Corporation today reported its results for the three months ended March 31, 2025. Algoma reported revenues of $107,201, compared to revenues of $109,214 in 2024. Net loss for 2025 was $23,280 compared to a net loss of $17,253 for the same period in 2024. Due to the closing of the canal system and the winter weather conditions on the Great Lakes – St. Lawrence Seaway, the majority of the Domestic Dry-Bulk fleet does not operate for most of the first quarter. All amounts reported below are in thousands of Canadian dollars, except for per share data and where the context dictates otherwise.
“Despite global economic uncertainties, Algoma remains steadfast in our commitment to delivering resilient service to our customers,” said Gregg Ruhl, President & CEO of Algoma Central Corporation. “Our ongoing investments in fleet enhancements and strategic growth reflect both our long-term vision and our confidence in the future. For the first time in Algoma’s history, we proudly took delivery of four vessels within a single quarter: the Fure Vesborg, Algoma Endeavour, Algoma East Coast, and Algoma Acadian. These ships will serve key markets across Northern Europe, the Great Lakes, and the Canadian and U.S. east coasts. With 11 vessels currently under construction, of which five are set to arrive in 2025, this milestone underscores our dedication to providing efficient, reliable, and sustainable marine transportation solutions to our valued customers,” added Mr. Ruhl.
Financial Highlights: First Quarter 2025 Compared to First Quarter 2024
Domestic Dry-Bulk segment revenue decreased to $30,551 compared to $31,075 in 2024. Despite a significant decrease in volumes, the impact to revenue was mitigated by the higher revenue days due to the mix of trades. Operating loss increased 4% to $37,160 compared to $35,613 in 2024, driven by higher lay-up costs due to four vessels in planned dry-dock versus one in the prior year period.
Revenue for Product Tankers decreased to $33,291 compared to $34,046 in 2024, primarily due to a reduction in revenue days resulting from an increase in dry-dockings this quarter, partially offset by the larger fleet size this year. There was an operating loss of $378 compared to operating earnings of $3,976 in 2024, reflecting higher layup spending and off-hire days due to the additional dry-dockings.
Revenue in the Ocean Self-Unloaders segment decreased slightly to $42,725 compared to $43,199 in 2024. This decline was primarily due to a reduction in revenue days driven by increased off-hire time, as the result of higher dry-docking days during the quarter. Operating earnings decreased 23% to $6,445 from $8,354 in 2024, reflecting 4% decrease in operating days driven primarily by the increased off-hire days.
Global Short Sea Shipping segment equity earnings remained flat quarter-over-quarter, with earnings of $1,831 in 2025 compared to $1,832 for the prior year period. Earnings increased in the cement fleet driven by higher revenue days due to fewer dry-dockings, improved operating performance, and two additional vessels compared to the prior year, partially offset by increased dry-docking days in the mini-bulker fleet and exposure to market conditions and weather-delays in the handy-sized fleet.
“While reported revenues declined across several segments this quarter, much of the decrease was due to an increase in planned dry-dockings. Adjusting for these factors, core performance remained strong,” said Christopher Lazarz, Chief Financial Officer at Algoma Central Corporation. “Domestic Dry-Bulk experienced increased revenue days due to the mix of trades with higher agriculture volumes, but lower salt cargoes. Despite the larger fleet size, the Product Tankers segment was impacted by higher dry-docking days. Similarly, the Ocean Self-Unloader segment faced more off-hire time also due to additional dry-dockings this quarter. Global Short Sea Shipping equity earnings remained stable year-over-year and our FureBear joint venture continues to generate strong earnings with five vessels in the fleet, underscoring the strength of our diversified portfolio,” concluded Mr. Lazarz.
Business Outlook
In the Domestic Dry-Bulk segment, the fleet is fully booked for the 2025 season. Demand is expected to be higher with the addition of significant new domestic steel industry business. Shipments in the agriculture sector are expected to be strong, while the construction market is likely to remain flat. The Algoma Endeavour is expected to begin service in early May, serving a variety of market sectors, and driving improvements in fleet efficiency and environmental sustainability.
We expect customer demand in the Product Tankers segment to remain steady in 2025 and for fuel distribution patterns within Canada to support strong vessel utilization for the vessels trading under Canadian flag. The Algoma East Coast and the Algoma Acadian are set to begin domestic operations during the second quarter with the first expected in late April followed by the second in June. The fleet is expected to be in full deployment with all ten Canadian vessels in operation. With the delivery of the first five FureBear newbuilds in 2024 and early 2025, five new tankers remain on order for the joint venture, with delivery expected between the second quarter of 2025 and early 2026. The Company is anticipating a continued steady rate environment for these tankers.
In the Ocean Self-Unloaders segment, five vessels in the Algoma fleet are scheduled for dry-docking throughout 2025, which is expected to have a significant impact on available days. Demand for aggregate, gypsum, and salt is expected to increase, while coal shipments are projected to decline slightly. Steel cutting for the hull of the second of three newbuild ocean self-unloaders took place in January, 2025. The first of three new ocean self-unloaders is expected to be delivered in the third quarter of 2025. These new ships will replace Algoma’s oldest vessels in the Pool and become the model for its next generation of ocean self-unloaders.
In our Global Short Sea Shipping segment, we anticipate steady earnings from the cement fleet, with most assets committed to long-term time charter contracts. The handy-size segment, together with the mini-bulk segment are expected to perform at levels similar to 2024. Two newbuild 9.5k dwt mini-bulkers are expected to be delivered into the NASC fleet in late 2025 and early 2026. These vessels will bring the newbuilds added to the mini-bulk fleet to six since 2020.
Global tariffs could increase operating costs and reduce trade volumes, potentially leading to shifts in global supply chain routes. While Algoma is closely monitoring the situation, we do not anticipate major changes in cargo volumes at this time; however, we are expecting higher costs across our supply chains, particularly for supplies and food, and are exploring ways to mitigate any potential impact.
Normal Course Issuer Bid
Effective March 21, 2025, the Company renewed its normal course issuer bid (the “2025 NCIB”) to purchase up to 2,028,391 of its common shares (“Shares”), representing approximately 5% of the 40,567,816 Shares issued and outstanding as of the close of business on March 7, 2025. Under the 2025 NCIB, or the previous year NCIB, no Shares were purchased and cancelled for the three month period ended March 31, 2025 or 2024.
Cash Dividends
The Company’s Board of Directors authorized payment of a quarterly dividend to shareholders of $0.20 per common share. The dividend will be paid on June 2, 2025 to shareholders of record on May 16, 2025.
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Source: Algoma Central Corporation