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Algoma experienced improved overall revenues following 2Q18 results

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Dry Bulk,

Algoma Central Corporation, a leading provider of marine transportation services, has announced its results for the three and six months ended 30 June 2018.

Second quarter and year to date 2018 highlights include:

  • An increase in revenue of CAN$15 295 in the second quarter and an increase of CAN$23 691 for the six months ended 30 June 2018 compared to the same periods in 2017.
  • Net earnings and basic earnings per share from continuing operations for the six months ended 30 June 2018 were CAN$5303 and CAN$0.14 compared to a loss of CAN$4048 and CAN$0.10, respectively, during the same period last year. The increase was due to higher operating earnings including higher earnings from joint ventures.
  • For the second quarter of 2018.
    • Domestic dry bulk revenues increased 11% and net earnings increased 19%, excluding impacts of gains and losses on foreign currency contracts, compared to 2017. The segment had strong volumes and a 4% increase in daily rates.
    • Product tankers revenue increased CAN$864 and net earnings increased by CAN$1127 compared to 2017. The segment experienced strong volumes and an increase in operating days.
    • Ocean self-unloaders net earnings increased 54% compared to the prior year. This was mainly as a result of the Algoma Integrity returning to full operations early in the quarter.
    • Global short sea shipping revenue increased CAN$7831, resulting in a CAN$3496 increase in net earnings. Revenue for NACC increased as a result of the addition of three vessels to the fleet.

“We are very happy with the 2018 second quarter results,” said Ken Bloch Soerensen, President and CEO of Algoma. “Compared to last year, we experienced improved overall revenues, increased vessel utilisation and further growth in the global short sea fleet. The outlook for the second half of 2018 remains positive. Both the domestic dry bulk and product tanker fleets are fully booked for the season and we are exploring options to add capacity to the dry bulk fleet,” Soerensen added.

“We are experiencing limited impact from the trade tensions,” said Gregg Ruhl, Chief Operating Officer of Algoma. “The domestic dry bulk fleet has been successful in securing replacement business to fill available days resulting from diversions of iron ore shipments to US destinations and we expect these changes to be earnings neutral.”

Cash dividends

On 9 August 2018 the company’s Board of Directors authorised payment of a quarterly dividend to shareholders of CAN$0.10 per common share. The dividend is payable on 4 September 2018 to shareholders of record on 21 August 2018.

Normal course issuer bid

During the second quarter of 2018 and during the six months ended 30 June 2018, 45 800 and 52 400 shares, respectively, were purchased for cancellation.

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Dry cargo shipping news Dry bulk shipping market