Algoma Central Corporation announced that for the year ended December 31, 2018, revenues increased by 12 per cent.
Consolidated revenues increased to $508.2 million as a result of improved rates in the Domestic Dry-Bulk and Ocean Self-Unloaders segments, and increased customer demand in the Product Tankers segment. Net earnings declined to $50.9 million from $58.8 million in 2017. However, net earnings from continuing operations, which excludes income from discontinued real estate operations in 2017, increased from $35 million to $50.9 million. Earnings in 2018 include a gain of $10.2 million related to the cancellation of four shipbuilding contracts. In December of 2018 the Company received a full refund, including interest, for one of the cancelled contracts and early in 2019, instalments on the remaining three contracts were refunded with interest.
The company added three new Equinox Class vessels to operations in 2018, namely Algoma Niagara, Algoma Sault and Algoma Innovator. Additionally, Algoma Buffalo and Algoma Compass were acquired from American Steamship Company late in 2017; both vessels began operations at the start of the 2018 navigation season.
Algoma Tankers Limited (“ATL”) purchased a 2008-built product tanker which became the seventh tanker in the ATL fleet. The vessel was re-named the Algonorth and began operations at the end of December.
Global Short Sea Shipping segment revenues increased 24 per cent compared to 2017. The Company has a 50 per cent interest in three joint ventures and revenue from the Global Short Sea Shipping segment is not included in the consolidated revenue figure.
During the year, NovaAlgoma Short Sea Carriers (“NASC”) and Peter Döhle Schiffahrts-KG, announced the creation of DNA Shipping, a commercial agreement to pursue consolidation and growth within the multi-purpose project vessel (MPP) and 13,500 to 15,000 mini-grabber dry-bulk markets. In addition, another new joint venture, NovaAlgoma Bulk Holdings (“NABH”), was created. NABH has interests in four deep-sea bulkers operating internationally and is managed out of Lugano, Switzerland.
Subsequent to year end, Algoma entered into an agreement to acquire three vessels from Oldendorff Carriers GMBH & Co. which operate in the CLSI Pool and entered into an agreement to acquire a 2010-built product tanker.
“Fiscal 2018 was an exciting year at Algoma,” said Gregg Ruhl, Algoma Central’s President and CEO. “Despite some challenges, we achieved a number of things which will advance us towards the strategic goals we set in 2015. Our success and growth would not have been possible without the hard work and dedication of the Algoma team and our loyal customers” added Mr. Ruhl.