Jill Sharland is BC Ferries’ interim President and CEO
VICTORIA – BC Ferries released its results for the three months ending December 31, 2022 and vehicle traffic levels hit a record high again as customers revert to pre-pandemic travel patterns.
During the third quarter ending December 31, 2022, 4.5 million passengers and 2.0 million vehicles travelled on the ferry system, an increase of 10 per cent and 3 per cent, respectively, compared to the same period in the prior year. Year-to-date, 17.4 million passengers and 7.5 million vehicles were carried, an increase of 23 per cent and 12 per cent, respectively, compared to the same period in the prior year.
Revenue for the third quarter ending December 31, 2022, inclusive of Safe Restart Funding, was $234.8 million, an increase of $12.6 million compared to the same period in the prior year. This increase is primarily a result of higher traffic volumes, net retail sales and fuel surcharges.
Quarterly results are affected by the seasonality of leisure travel patterns and the third quarter results reflect a seasonal reduction in traffic. This time is used by BC Ferries to perform upgrades and major maintenance and refits, as well as mandatory inspections on the majority of vessels.
Net loss for the third quarter ending December 31, 2022 was $22.7 million compared to a net loss of $1.6 million in the same quarter the previous year, primarily as a result of less Safe Restart Funding being applied in the quarter and higher operating costs.
During the nine months ending December 31, 2022, net earnings were $65.6 million compared to $83.0 million in the same period in the prior year, primarily as a result of higher traffic volumes and net retail sales, partially offset by less Safe Restart Funding being applied in the current year and higher operating expenses.
Third quarter operating expenses were $245.2 million compared to $209.5 million the same period last year. This increase is mainly due to an increased number of sailings, with corresponding higher labour costs, as well as higher fuel prices and maintenance expenses.
“While expenditures are up, it’s important we continue to support our employees, who are the heart of our organization,” said Jill Sharland, BC Ferries’ interim President and CEO. “We’re proud of their exceptional efforts to move record amounts of traffic and keep sailing cancellations to a minimum.”
Continuous investment in infrastructure is critical to the operation of a safe, reliable and sustainable ferry system. Capital expenditures in the three and nine months ending December 31, 2022 totalled $37.3 million and $86.2 million, respectively, and included investments in existing ships, hardware upgrades and various other projects.
In December 2020, BC Ferries received $308.0 million from the Province as part of the provincial and federal governments’ Safe Restart Funding program. All of the direct operating relief funding has now been applied with the remaining funding intended to offset the costs of discretionary sailings and to limit fare increases. In the three months ending December 31, 2022, BC Ferries recognized $2.1 million ($7.7 million year-to-date) of Safe Restart Funding compared to $19.2 million ($82.0 million year-to-date) in the same period in the prior year.
@bcferries.com
