@bcferries.com
BRITISH COLUMBIA – BC Ferries’ year-end results for the fiscal year ended March 31, 2023 (fiscal 2023) showed significant growth in traffic and revenue and continued pressure on operating expenses. Excluding the federal/provincial Safe Restart Funding, revenues increased $170.4 million or 20 per cent compared to the prior year, which was $46.9 million higher than the $123.5 million or a 14 per cent increase in expenses.
During the year, BC Ferries carried 9.4 million vehicles and 21.6 million passengers, an increase of 11 per cent and 21 per cent respectively, compared to the same period in the prior year, primarily as a result of the removal of travel restrictions. To meet demand, the company delivered 86,835 round trips, an increase of over 4,000 trips over the prior year.
BC Ferries is further managing the increase in traffic on the Major Routes by using the Saver fares introduced two years ago. These new fares provide customers with more choice and value, and contribute to increased vehicle traffic on traditionally lower utilized sailings and less sailing waits overall. Since March 2021, over one million customers have taken advantage of Saver fares. Customers can book Saver fares on the company’s recently introduced mobile app, which makes travel planning easy and convenient.
During fiscal 2023, BC Ferries experienced a high level of sailing cancellations due to the company’s inability to secure sufficient crew. This resulted in an increase in total cancellations as a per cent of total sailings from 1.2 per cent in fiscal 2022 to 1.6 per cent in fiscal 2023.
“Like many companies facing staffing challenges, we are working hard to fill key positions to meet our commitment to our customers to deliver the service they rely on each and every day,” said Nicolas Jimenez, BC Ferries’ President and CEO. “We know that even one cancellation is one too many for the millions of travellers who depend on the coastal ferry system.”
In fiscal 2023, BC Ferries experienced a net loss of $1.8 million compared to net earnings of $34.1 million in the previous year. The prior year net earnings included $102.3 million in Safe Restart Funding. Excluding Safe Restart Funding, the company had a loss of $68.2 million in the previous year.
“Despite high inflation and operating costs, we will continue to invest in our most valuable asset, our people, who are the backbone of BC Ferries,” said Jimenez. “I am constantly impressed by their commitment to provide the best possible customer experience for every passenger who travels with us.”
Revenue for the year ended March 31, 2023 was $1.04 billion, an increase of $77.4 million or 8 per cent from the prior year, primarily due to the lifting of travel restrictions which led to an increase in vehicle and passenger traffic levels and net retail sales.
Operating expenses in fiscal 2023 increased to $991.5 million, up 14.2 per cent from $868.0 million in the prior year. The increase is mainly due to the increased number of round trips with corresponding higher labour costs and fuel consumption, as well as increased fuel prices, maintenance expenses and depreciation.
BC Ferries continues to make significant investments to help ensure the long-term sustainability of the coastal ferry system. In fiscal 2023, the company invested $131.4 million in vessel upgrades and modifications, terminal marine structures, information technology, terminal building upgrades and equipment, and various other projects.
While BC Ferries is cautiously optimistic that traffic will continue to be strong, leading to improved conditions, the company cannot predict with certainty future traffic volumes. Traffic levels can be affected by a variety of factors, such as weather, transportation costs including fuel, economic conditions and disposable personal income of travellers.
BC Ferries’ full financial statements, including notes, and Management’s Discussion and Analysis are filed on SEDAR and will be available at www.sedar.com.
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