British Columbia Ferry Services Inc. (BC Ferries) has posted a net loss of $17.2 million for the three months ended December 31, 2012. This compares with a loss of $19.2 million in the same quarter of 2011.
According to the ferry operator, its fiscal third-quarter 2012-13 losses occurred amid a seasonal downturn.
BC Ferries stated that net earnings for the nine-month period ended December 31, 2012, were $52.6 million, up from $33.1 million for the same period of the previous year.
“Each year, we use this seasonal downturn in traffic volumes to initiate upgrades, major maintenance and refit programs, as well as undertake mandatory safety inspections on the majority of our vessels,” said Mike Corrigan, BC Ferries’ president and CEO.
The ferry operator said that third-quarter revenue increased by $4.7 million to $169.6 million compared with the same quarter a year previous.
The ferry operator noted, however, that third-quarter vehicle traffic declined 2.2% and passenger traffic declined 2.4%, due primarily to a stormy December, when total traffic decreased 5.6% on major routes compared with the previous year.
BC Ferries said that stormy weather and high winds in December resulted in numerous sailing cancellations in and around peak holiday season.
The ferry operator added that on February 14, 2013, it learned that credit rating agency Standard & Poor had revised the ferry operator’s outlook from negative to stable. BC Ferries said that revision reflects Standard & Poor’s positive view of recent amendments to the Coastal Ferry Act.
