St. Catharines, Ontario - Algoma Central Corporation (TSX: ALC) ('Algoma', the 'Company') reported its results for the three and nine months ended September 30, 2022. Revenues increased 14% during the 2022 third quarter to $199,327 compared to $174,734 for the same period in 2021 while net earnings increased 6% in the same period. The Company reported 2022 third quarter EBITDA(1) of $73,604 compared to $69,415 for the same period in 2021. All amounts reported below are in thousands of Canadian dollars, except for per share data and where the context dictates otherwise. 'Our strategic approach to maintain disciplined growth and a strong vessel portfolio continues to serve us well,' said Gregg Ruhl, President and CEO of Algoma. 'Driving our plan forward are our hard working seafarers and shoreside support teams who continue to deliver exceptional service to our customers and long-term value for our shareholders. We had another busy quarter and I am pleased to see the significant recovery of our tanker business and continued strength in our international segments, particularly in our joint ventures. As we are well into the fourth quarter, I am confident Algoma will deliver full-year results beyond our earlier expectations as we expect steady market demand and strong operating performance across all business units to continue through to the end of the year,' concluded Mr. Ruhl
Financial Highlights: Third Quarter 2022 Compared to 2021
Net earnings increased 6% to $42,533 compared to $39,984 last year. Basic earnings per share were $1.13 compared to $1.06.
Global Short Sea Shipping segment equity earnings increased 60% to $12,103 compared to $7,541 for the prior year driven by increased earnings in the cement and handy-size fleets as well as significant freight rate increases in the mini-bulker fleet that nearly offset the reduced revenue from three less vessels in that fleet. Earnings for the quarter include a $2,922 gain on the sale of two vessels in 2022 compared to a gain of $2,720 on the sale of two vessels in the same quarter in 2021.
Revenue for Product Tankers increased 55% to $32,749 compared to $21,186. This was mainly driven by higher fuel cost recoveries and improved customer demand. The increase was also attributable to the addition of one vessel to the fleet during the second quarter that operates internationally under bareboat charter. Despite higher operating costs, operating earnings increased 48% to $5,888 compared to $3,969 driven by a 32% increase in revenue days primarily due to the increased demand.
Ocean Self-Unloader segment revenue increased 21% to $49,927 compared to $41,221 driven by higher freight rates, fuel cost recoveries and a 10% increase in Pool volumes. Operating earnings decreased 24% to $7,856 compared to $10,366 in 2021 due to higher operating costs and increased dry-dock expenditures.
Domestic Dry-Bulk segment revenue increased 6% to $115,996 compared to $109,591, reflecting increased fuel recoveries and improved overall base freight rates. Despite lower revenue days during the 2022 third quarter, overall volumes were slightly higher offsetting the impact of lower vessel utilization on two vessels. Operating earnings decreased 7% to $30,453 compared to $32,795 driven primarily by higher layup and repair spending to activate idled vessels in preparation for the fall grain harvest in Canad
Forward Looking Statements
Algoma Central Corporation's public communications often include written or oral forward-looking statements. Statements of this type are included in this document and may be included in other filings with Canadian securities regulators or in other communications. All such statements are made pursuant to the safe harbour provisions of any applicable Canadian securities legislation. Forward-looking statements may involve, but are not limited to, comments with respect to our objectives and priorities for 2023 and beyond, our strategies or future actions, our targets, expectations for our financial condition or share price and the results of or outlook for our operations or for the Canadian, U.S. and global economies. The words 'may', 'will', 'would', 'should', 'could', 'expects', 'plans', 'intends', 'trends', 'indications', 'anticipates', 'believes', 'estimates', 'predicts', 'likely' or 'potential' or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that our assumptions may not be correct and that actual results may differ materially from such predictions, forecasts, conclusions or projections. We caution readers of this document not to place undue reliance on our forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. Algoma owns and operates the largest fleet of dry and liquid bulk carriers operating on the Great Lakes - St. Lawrence Seaway, including self-unloading drybulk carriers, gearless dry-bulk carriers and product tankers. Since 2010 we have introduced 10 new build vessels to our domestic dry-bulk fleet, with two under construction and expected to arrive in 2024, making us the youngest, most efficient and environmentally sustainable fleet on the Great Lakes. Each new vessel reduces carbon emissions on average by 40% versus the ship replaced. Algoma also owns ocean self-unloading dry-bulk vessels operating in international markets and a 50% interest in NovaAlgoma, which owns and operates the world's largest fleet of pneumatic cement carriers and a global fleet of mini-bulk vessels serving regional markets. Algoma truly is Your Marine Carrier of Choice. For more information about Algoma, visit the Company's website at www.algonet.com
Contact:
Gregg A. Ruhl
President & CEO
T: 905-687-7890
Peter D. Winkley
E.V.P. & Chief Financial Officer
T: 905-687-7897
ALGOMA CENTRAL CORPORATION 