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BC Ferries has profitable summer after visitor surge

BC Ferries realized a $95.2 million profit in 2016’s second quarter after a strong summer with plenty of American visitors, according to financial results released November 25. The corporation also reported a six-month profit of $122.
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riekephotos : Shutterstock.com 

BC Ferries realized a $95.2 million profit in 2016’s second quarter after a strong summer with plenty of American visitors, according to financial results released November 25.

The corporation also reported a six-month profit of $122.2 million through to the end of September.

“Traffic numbers continued to increase during the summer, with many U.S. visitors taking advantage of our lower dollar and large numbers of Canadians taking stay-cations here in B.C.,” Mike Corrigan, chief executive of BC Ferries, said in a statement.

“It’s important for us to achieve positive financial results, as we need to continuously invest in our infrastructure to provide safe and reliable marine transportation.”

Both the second-quarter and six-month results improved upon the results in the same periods last year.

BC Ferries recorded a profit of $84.5 million in the second quarter last year and $103.3 million over the first two quarters in 2015.

The corporation said it typically generates net earnings in the first and second quarters, which are reduced by net losses in the last two quarters of a fiscal year due to fewer vehicles and passengers.

Corrigan said the profit will help finance the three new natural gas-powered Salish Class vessels, which enter service next year. They will also go toward mid-life upgrades for the two Spirit Class vessels, including conversion to dual-fuel, so they can operate on natural gas or marine diesel.

Over the second quarter, BC Ferries realized a nearly $20 million increase in revenue to $298.9 million compared to the same quarter last year. Operating costs also increased compared with the second quarter of 2015, jumping to $190.4 million from $182.1 million.

Times Colonist