BC Ferries has made revisions to the company’s Performance Term Six Submission to the independent BC Ferries Commissioner. Although only filed in September 2022, the changes are needed due to the difficult Global economic picture.
The plan is now posted on the Commissioner’s website for public feedback.
In the three months ending 31 December 2022, BC Ferries reported that compared to the same period in 2021;
The British Columbia Ferry Services Board announced in a press release the appointment of Nicolas Jimenez as President and CEO of BC Ferries, effective March 6, 2023.
Mr. Jimenez, who is currently the President and CEO of the Insurance Corporation of B.C., was selected following an international executive search.
BC Ferries released its Q2 results for the three and six months ending September 30, 2022. Vehicle and passenger traffic, revenue and net earnings are all higher compared to the same periods in the prior year.
In Q2, the quarter ending September 30, 2022, BC Ferries carried 7.5 million passengers and 3.0 million vehicles.
Year-to-date, the company carried 12.9 million passengers (+28%) and 5.4 million vehicles (+15%) respectively, compared to the same period in the prior year, primarily as a result of travel restrictions being in place through most of Q1 in the prior year.
BC Ferries’ net earnings for Q2 were $80.4 million, consistent with the same quarter the previous year.
Year-to-date since April 1, 2022, net earnings were $88.3 million compared to net earnings of $84.6 million in the prior year.
Revenue for the three months ending September 30, 2022, at $343.1 million, was up $26.3 million over the same period in the prior year primarily as a result of higher passenger traffic volumes, net retail sales, ferry transportation fees and fuel surcharges.
Year-to-date, revenue was $608.0 million, up $62.0 million over the same period in the prior year primarily as a result of higher traffic volumes, net retail sales and fuel surcharges partially offset by lower Safe Restart Funding.
The next 12 years will be a period of further transformation for BC Ferries, which is set to order a total of 11 new vessels, including four small ships and seven large ships.
On Thursday, the procurement process began for ordering four Island Class ships, which are designed for minor routes.
Modernization and replacement of vessels, terminals and IT systems are the centrepieces of BC Ferries’ Performance Term Six submission provided to the BC Ferries Commissioner recently for rate determination activities.
The 12-Year Capital Plan responds to anticipated passenger and vehicle growth and changing customer needs. It includes:
In addition to investments included in the 12-Year Capital Plan, BC Ferries is planning customer enhancements including:
The British Columbia Ferry Services Board announced the appointment of Jill Sharland as Interim President and CEO of BC Ferries.
Ms. Sharland is a senior finance and operations executive who is currently Vice President and Chief Financial Officer at BC Ferries. She will continue to fulfill her duties as CFO.
BC Ferries: traffic, revenue, net earnings and expenditures are all up, however the financial results for the fiscal year ended March 31, 2022 (fiscal 2022) are still lagging behind pre-pandemic levels.
Key figures (full year, ending March 31, 2022)
+37% passengers (17.9 million) (but still 20% lower than pre-COVID fiscal 2019)
+26% vehicles (8.5 million) (but still 5% lower than pre-COVID fiscal 2019)
+12% Revenue $965.4 million
+11% Operating $868.0 million (increases in the number of sailings, staff required to provide more service, fuel and maintenance expenses.
BC Ferries experienced a net loss of $68.2 million prior to recognizing Safe Restart Funding. After recognizing $102.3 million of this federal-provincial funding, net earnings were $34.1 million, an increase of $13.1 million compared to the previous year, which included $186.0 million in Safe Restart Funding.
In December 2020, BC Ferries received $308 million through the Safe Restart Program, a federal-provincial initiative intended to help provinces and territories safely restart their economies. Assistance to the public transportation sector, including BC Ferries, has been a critical part of the BC Safe Restart Plan. Without this funding, BC Ferries would have recorded a total loss of $233.2 million over the past two years ($68.2 million in fiscal 2022 and $165.0 million in fiscal 2021).
The operating relief component of the Safe Restart Funding BC Ferries received has now been exhausted. The company does not foresee the need for any further COVID relief funding.
LMG Marin has been selected by BC Ferries as design agent for its new Major class vessels.
The first stage of the project will soon start with the overall goal to achieve a zero-emission design by use of proven technology. This concept design will be later further finetuned into a basic design and a specification package that will be used for contracting the new ships at a yard.
The new Major Class ferries are expected to be operational by 2029.
As experienced throughout the fall and winter of 2021/22, the impact of crew shortages at BC Ferries is expected to continue through the spring and into summer, affecting sailing times and plans to provide additional service on some routes.
