(TSX : ALC)
ST. CATHARINES, ON,
Aug. 5, 2016 /CNW/ - Algoma
Central Corporation ("Algoma" – www.algonet.com) today announced
results for the three and six months ended June 30, 2016.
The Company is reporting 2016 second quarter revenues of
$96,202 compared to $125,336 for the same period in 2015 The
decrease in revenue occurred mainly in Domestic Dry-Bulk and
was due to reduced customer demand in all major commodities and the
impact of fuel costs that are passed on directly to customers as
part of the freight rate. Revenues in the Product Tanker segment
decreased due primarily to diminished volumes on the East Coast and
lower fuel prices. Partially offsetting these decreases was an
improvement in the Ocean Shipping segment revenue due to more
revenue days resulting from the addition of two vessels to the
fleet in early January.
Revenues for the six months ended June
30, 2016 of $136,679 were
$32,566 lower than revenues for the
same period in the prior year. Domestic Dry-Bulk revenues decreased
by $38,592, Product Tanker segment
experienced a decrease of $13,602 and
the Ocean Shipping segment had an increase of $19,628.
Segment operating earnings after income taxes for the 2015
second quarter includes a gain on cancelled shipbuilding contracts
in the amount of $10,212. Excluding
this item from the segment results, the earnings for the second
quarter of 2015 would have been $12,748. Despite the significant drop in
revenues, earnings for the 2016 second quarter of $12,069 were only $679 lower than last year. Improvements in
earnings were realized in the Domestic Dry-Bulk, Ocean Shipping and
the Global Short Sea Shipping segments. The Product Tanker segment
had a decrease in segment earnings.
The segment operating earnings after income taxes for both the
2016 and 2015 six - month periods include gains on shipbuilding
contracts in the amount of $16,196
and $10,212, respectively. Excluding
these items from the segment results, the loss for the six- months
ended 2016 would have been $12,639
which compares to a loss for the 2015 six-month period of
$11,609.
Net earnings and basic earnings per share from continuing
operations for the 2016 second quarter were $11,981 and $0.31,
respectively, compared to $22,379 and
$0.58, respectively, for the same
period last year. Net earnings and basic earnings per share from
continuing operations for the 2016 six-months were $4,022 and $0.10,
respectively, compared to a loss of $1,397 and $0.04
for 2015.
|
Three
Months
|
Six
Months
|
|
Ended June
30
|
Ended June
30
|
Revenues
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
Domestic
Dry-Bulk
|
$
|
64,112
|
$
|
95,440
|
$
|
75,771
|
$
|
114,363
|
Product
Tankers
|
16,041
|
19,513
|
24,556
|
38,158
|
Ocean
Shipping
|
16,049
|
10,383
|
36,352
|
16,724
|
|
|
|
|
|
|
$
|
96,202
|
$
|
125,336
|
$
|
136,679
|
$
|
169,245
|
|
|
|
|
|
|
Three
Months
|
Six
Months
|
|
Ended June
30
|
Ended June
30
|
Net Earnings (Loss) from
Continuing
Operations
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
Operating (loss) earnings
net of income
tax
|
|
|
|
|
|
|
|
|
|
Domestic
Dry-Bulk
|
$
|
7,984
|
$
|
6,071
|
$
|
(19,731)
|
$
|
(18,021)
|
Gain on shipbuilding
contracts
|
-
|
10,212
|
16,196
|
10,212
|
|
7,984
|
16,283
|
(3,535)
|
(7,809)
|
Product
Tankers
|
1,636
|
3,246
|
128
|
6,965
|
Ocean
Shipping
|
3,762
|
6,077
|
11,030
|
7,297
|
Global Short Sea
Shipping
|
902
|
—
|
1,392
|
—
|
Corporate
|
(2,215)
|
(2,646)
|
(5,458)
|
(5,277)
|
|
|
|
|
|
|
12,069
|
22,960
|
3,557
|
1,176
|
Not specifically
identifiable to
segments
|
|
|
|
|
Net (loss) gain on foreign
currency
translation
|
2,468
|
1,707
|
2,443
|
2,039
|
Interest
expense
|
(3,023)
|
(2,597)
|
(5,959)
|
(5,226)
|
Interest
income
|
434
|
310
|
921
|
744
|
Income tax
recovery
|
33
|
(1)
|
3,060
|
(130)
|
|
|
|
|
|
|
$
|
11,981
|
$
|
22,379
|
$
|
4,022
|
$
|
(1,397)
|
About Algoma Central Corporation
Algoma Central Corporation operates the largest Canadian flag
fleet of dry and liquid bulk carriers on the Great Lakes - St.
Lawrence Waterway, including 13 self-unloading dry-bulk carriers,
six gearless dry bulk carriers and six product tankers. The Company
has announced contracts for seven new Equinox Class domestic
dry-bulk vessels as part of its on-going fleet renewal program.
Algoma also owns four ocean dry-bulk vessels operating in
international markets and has a 50% in two other ocean dry-bulk
vessels. Algoma provides ship management services for other ship
owners and owns a diversified ship repair and steel fabricating
facility active in the Great Lakes and St. Lawrence regions of Canada. In 2016, Algoma announced a new
strategic initiative to grow into attractive global niche markets,
beginning with a fifty percent interest in a pneumatic cement
carrier business.
SOURCE Algoma Central Corporation