VICTORIA – British Columbia Ferry Services Inc. (BC Ferries) released its year-end results for its 2016 fiscal. Consolidated net earnings were $69.6 million, compared to consolidated net earnings of $49.1 million for fiscal 2015.
Revenues increased from $841.1 million in fiscal 2015 to $869.8 million in fiscal 2016, primarily due to an increase in traffic volume, driven by a lower Canadian dollar and the general improvement in BC’s economic activity. Operating expenses increased from $722.5 million in fiscal 2015 to $744.2 million in fiscal 2016. The $21.7 million increase is primarily due to increases in maintenance, labour, cost of goods sold and amortization costs, offset by lower fuel costs.
Capital expenditures in the three and twelve months ended March 31, 2016 totalled $70.3 million and $181.2 million, respectively. For fiscal 2016, $114.2 million of these investments were for vessel upgrades and modifications, with the remainder for terminal marine structures; terminal and building upgrades and equipment; and information technology.
In fiscal 2016, BC Ferries experienced a 4.9 per cent increase in vehicle traffic and a 4.5 per cent increase in passenger traffic compared to fiscal 2015. Traffic was favourably impacted by lower fuel prices, the lower Canadian dollar and promotional fare incentives offered by BC Ferries in fiscal 2016. This increase in traffic sees a return to traffic levels experienced in 2009 prior to the turbulence in the Canadian and world economies.
Additional information regarding significant events during the operating year are available at the following link.
BC Ferries’ full financial statements, including notes and Management’s Discussion and Analysis, as well as the Statement of Executive Compensation, are filed on SEDAR and will be available at www.sedar.com.
