Algoma Central Corporation reported consolidated revenue for the year ended December 31, 2017 of $451.0 million, compared to $391.4 million for 2016. Revenue increased in the Domestic Dry-Bulk and Product Tanker segments as a result of an increase in volume in the majority of sectors and higher customer demand. Ocean Self-Unloaders revenue increased as the Algoma Integrity rejoined the Pool in 2017 after two years in domestic service. Net earnings of $56.2 million were recorded, well above 2016 net earnings of $33.3 million. Net earnings from continuing operations, which excludes income from discontinued real estate operations, was $32.4 million in 2017 compared to $10.6 million for 2016.
The Global Short Sea Shipping segment generated revenue of $222.8 million compared to $18 million in 2016. The Company has a 50 per cent interest in two joint ventures and revenue from the Global Short Sea Shipping segment is not included in the consolidated revenue figure. Algoma established a second joint venture, NovaAlgoma Short Sea Carriers, with Nova Marine Carriers, creating increased presence in international markets.
In other news, Algoma sold seven of the remaining properties held for sale from the discontinued real estate segment for a total pre-tax gain of $28.9 million.
Two new Equinox Class vessels joined the domestic fleet; Algoma Niagara, the first self-unloader to be delivered in the Class and Algoma Strongfield which joined her Equinox Class gearless sister ships.
Algoma also acquired two river-class vessels from American Steamship Company, expanding the domestic fleet and capacity.
On December 15, 2017 the Company announced that it had taken ownership of Algoma Innovator from the 3 Maj Shipyard in Croatia. The vessel is the first of the Company’s Equinox Class 650’ self-unloading dry-bulk freighters. Subsequent to the year-end, on February 5, 2018, the Company took delivery of Algoma Sault from the Yangzijiang Shipyard in China. Both vessels are scheduled to join operations for the upcoming navigation season.
“Fiscal 2017 was a year of growth, and this was made possible by our dedicated employees and our loyal customers,” said Ken Bloch Soerensen, President and CEO of Algoma. “We achieved profitable growth under changing market conditions and advanced further into global short sea shipping,” Mr. Soerensen added.