BC Ferries has managed to bail itself out of a deficit position with the posting of modest profit despite a decrease in passengers, according to the corporation’s annual financial report.
For the fiscal period ending in March 2013, BC Ferries posted net earnings of $15.5 million. It incurred a $9 million loss in the previous fiscal year.
“By navigating through challenging times with prudent fiscal stewardship we are pleased to return to a position of profitability,” said BC Ferries CEO Mike Corrigan.
“BC Ferries has had a positive year, despite ridership being down. With an aggressive cost containment program, we’ve been able to post a modest profit.”
The ferry company had $32.6 million increase in revenue, offset by an $8.6 million increase in operating expenses.
Total revenue for the fiscal year was $786.4 million, compared with $753.8 million the previous year.
The ferry company had a 1.1% decline over the previous year in vehicle traffic and 1.2% drop in passenger traffic in fiscal 2013.
In three of the last five months of fiscal 2013, however, traffic was up compared with the same period in fiscal 2012.
The company still has some way to go, however, before it can improve its negative credit rating. Standard & Poor’s has upgraded that rating from negative to stable.
