Canadian shipping company Algoma Central Corporation wrapped up the second quarter of 2019 with higher net income, driven by an increase in operating earnings.
Algoma’s net earnings rose to CAD 22.1 million (USD 16.7 million) in Q2 2019 from CAD 14.4 million (USD 10.9 million) seen in the corresponding period a year earlier.
As explained, profit was higher as a result of a rise in operating earnings and a foreign currency gain versus a loss reported last year.
Consolidated revenue for the 2019 second quarter was CAD 159.2 million, an increase of 14% compared to CAD 139.4 million reported for the same period in 2018.
Specifically, product tanker operating earnings grew 222% which was driven by high customer demand and having two additional vessels operating in the quarter compared to last year. During the quarter, the company added the tanker Algoterra to the Canadian fleet.
The ocean self-unloader segment grew earnings by 85% based on strong pool performance and the acquisition of three vessels that began operating for Algoma in the CSL Pool in June.
On the other hand, domestic drybulk results were lower due to having one less vessel in operation, partially offset by a strong pricing environment on the Great Lakes – St. Lawrence Seaway.
“Since last fall we have added six new vessels into our core businesses, each of which have been strong contributors to our year to date earnings,” Gregg Ruhl, President and CEO of the company, commented.
“These new vessels have integrated well into the Algoma fleet and we look forward to continued strong results with the added capacity going forward,” he added.
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 and product tankers. Algoma also owns ocean self-unloading dry-bulk vessels operating in international markets and a 50% interest in NovaAlgoma.