Algoma Central Corp. announces financial results

3Q18 and year to date 2018 highlights include:

• A 16% increase in revenue in 3Q18 and a 14% increase for the nine months ended September 30, 2018 compared to the same periods in 2017.
• EBITDA increased 8% during 3Q18 and 32% for the nine months ended 30 September 2018.
• Net earnings from continuing operations increased 35% for the nine months ended 30 September 2018. This was due to higher operating earnings, including higher earnings from joint ventures and a gain on the disposition of assets within the Domestic Dry-Bulk fleet.
• For 3Q18:
- Domestic Dry-Bulk net earnings increased 8% as a result of improved freight rates.
- Product Tanker revenue increased 24% compared to 2017. The segment is experiencing strong customer demand from its major customer. Subsequent to the quarter, the strong outlook for volumes and sustained levels led the decision to purchase a sixth full size product tanker.
- Ocean Self-Unloaders revenue increased 28% compared to the prior year. This was mainly as a result of the fleet being at full utilisation with the return of the Algoma Integrity to the Pool.
- Steps were taken to begin the cancellation of four shipbuilding contracts with a Croatian shipyard as a result of delays encountered in the construction of the ships.
• During 3Q18, a new JV, NovaAlgoma Bulk Holdings (NABH) was created. NABH has interests in four deep-sea bulkers operating internationally and is managed out of Lugano, Switzerland.

“Customer demand is strengthening and we expect this will continue to have positive impacts on daily rates in the Domestic Dry-Bulk segment,” said Ken Bloch Soerensen, President and CEO of Algoma. “In order to provide capacity, we are currently reviewing options to replace the cancelled vessels and in the meantime we look forward to the arrival of the Algoma Conveyer from China in early 2019,” Soerensen added.

Read the article online at: https://www.drybulkmagazine.com/shipping/15112018/algoma-central-corp-announces-financial-results/