St. Catharines, ON – Algoma Central Corporation today reported its results for the year ended December 31, 2022. Algoma delivered strong fiscal 2022 results with revenues of $677.9M a 13% increase compared to 2021. The Company also reported a 46% increase in net earnings to $120M.
“We have been busy this year and our results are reflective of strong markets, steady demand and optimal utilization of our growing vessel portfolio,” said Gregg Ruhl, President and CEO of Algoma.
“This year, our focused diversification efforts fueled our low carbon investments in fleet renewal, with the expansion of our product tanker fleet in Europe, replacement vessels within our Canadian fleet, and most recently, commitments for two new-build vessels in our ocean self-unloader fleet.”
Continued Mr. Ruhl: “Algoma is nearly fully booked for the 2023 navigation season and our fleets are ready to continue to safely and efficiently meet customer demand delivering cargo for industries that keep the economy moving in Canada and around the world. Overall, earnings could be negatively impacted in the event of a prolonged recession and events in Ukraine and Europe can significantly impact ocean freight rates.”
Global Short Sea Shipping segment equity earnings increased 72% to $31.7M compared to $18.4M for the prior year. Strong global markets and higher than normal freight rates continued to benefit the segment during 2022.
Revenue for Product Tankers increased 26% to $118.6M compared to $94.5M. This was mainly driven by higher fuel cost recoveries and improved customer demand. Market demand is returning to pre-pandemic levels after significantly reduced demand in 2021.
Ocean Self-Unloader segment revenue increased 24% to $193.7M compared to $156.3M – driven by higher freight rates, increased fuel cost recoveries and an increase in overall Pool volumes. Operating earnings increased 37% to $40.4M compared to $29.5M in 2021, driven primarily by improved freight rates and a modest increased in Pool volumes.
Domestic Dry-Bulk segment revenue increased 6% to $360.1M compared to $338.6M reflecting increased fuel cost recoveries and improved overall base freight rates. Despite lower volumes during the year, higher freight rates more than offset the decrease in tonnage.
(Photo Algoma Central Corporation)
