Solid results from Algoma
(Posted on 10/08/20)
Algoma Central Corporation, a leading provider of marine transportation services, has announced its results for the three and six months ended June 30, 2020.
Second quarter ended June 30, 2020 highlights include (in 000s Canadian dollars) operating earnings $28,999, an increase of 3% or $916 compared to the same period in 2019. Increases in operating earnings resulting from growth in the size of Ocean Self-Unloader and Tanker fleets were partially offset by lower dry-bulk volumes caused by the impact of COVID-19 on customers in both our ocean and domestic business units. Revenues were $151,270 compared to $159,169 for the 2019 quarter. Revenues in all business units were affected by lower fuel cost recovery charges and lower levels of customer demand.
Operating earnings for Domestic Dry-Bulk were $19,429, up 5% compared to $18,570 in 2019, as higher freight rates and cost mitigation actions offset the impact of reduced volumes in certain customer sectors. Operating earnings in Ocean Self-Unloaders were $3,749, down 13% compared to $4,316 for 2019. Decreases in Pool volumes, particularly in the construction sector, and the impact of scheduled dry-dockings drove this decrease, despite the increase in the fleet size. Net earnings were $17,742 compared to $22,113 for 2019, as higher interest and tax costs, combined with reduced earnings from joint ventures, more than offset the improvement in operating earnings.
"First and foremost, these solid results demonstrate the resilience of our people," said Gregg Ruhl, President and Chief Executive Officer of Algoma. "Because of their passion for their work, for Algoma and for the customers and industries we serve, our operations never missed a beat even as the impacts of COVID-19 hit just as we were fitting out many of our vessels for the 2020 season." Mr. Ruhl continued, "Our results also demonstrate the resilience of our business model. We were able to right-size our operating fleet quickly in the face of reduced demand, keeping our most efficient and modern tonnage fully and profitably trading by idling older, less profitable vessels. Our pricing also largely remained firm in the face of a sudden supply/demand imbalance, as our book of business is made up primarily of longer term arrangements with our customers."
Algoma owns and operates the largest fleet of dry and liquid bulk carriers operating on the Great Lakes - St. Lawrence Waterway, including self-unloading dry-bulk carriers, gearless dry-bulk carriers, cement carriers, and product tankers. Algoma also owns ocean self-unloading dry-bulk vessels operating in international markets and a 50% interest in NovaAlgoma, which owns and operates a diversified portfolio of dry-bulk fleets serving customers internationally.
Latest News
Torvald Klaveness consolidates groupwide digital solutions
(Posted on 31/03/25)Torvald Klaveness has announced the decision to consolidate all digital services under Klaveness Digital... Read more
INTERCARGO reaffirms call for simplicity as IMO climate talks intensify
(Posted on 31/03/25)The International Association of Dry Cargo Shipowners (INTERCARGO) has renewed its call for straightforward... Read more
The Swedish Club reports strong 2024 results
(Posted on 31/03/25)The Swedish Club has delivered strong results for 2024, posting a USD 34 million profit and significantly... Read more
NORDEN adds two newbuilding Capesize leases with purchase options
(Posted on 27/03/25)In line with NORDEN’s positive long-term outlook for Capesize freight rates, the company have... Read more
Enhanced data collection for Western Bulk
(Posted on 27/03/25)OrbitMI, a global provider of maritime software and data products, has expanded its workflow capabilities... Read more
ClassNK appoints new President & CEO and Executive Vice President
(Posted on 27/03/25)Current ClassNK Senior Vice President Hayato Suga has been appointed as President & CEO as well... Read more
ASL sees continued surge in demand for Cape Size carriers
(Posted on 19/03/25)The surge in demand for Cape Size bulk carriers will continue for another six weeks, driven on by increased... Read more
Partnership to enhance compliance and emissions management
(Posted on 18/03/25)OrbitMI, a leading provider of maritime SaaS software, has announced that Istanbul-based Statu Shipping... Read more
INTERCARGO statement on loss of seafarers in Odesa bulker attack
(Posted on 18/03/25)“The International Association of Dry Cargo Shipowners (INTERCARGO) is deeply saddened by the... Read more
DNV white paper on adoption of ammonia and hydrogen fuels
(Posted on 18/03/25)As the shipping industry continues its transition to carbon-neutral fuels, ammonia and hydrogen are... Read more
