Algoma Central Corporation today reported its results for the year ended December 31, 2024. The St. Catharines-based shipping enterprise reported revenues of $703.4M compared to revenues of $721M in 2023. Net earnings for 2024 were $91.6M compared to earnings of $82.8M in 2023. The Company reported 2024 EBITDA of $200.4M compared to $186M for 2023.
“As we close out 2024, our 125th anniversary year, I am pleased to report strong performance,” said Gregg Ruhl, President and CEO of Algoma Central Corporation. “Despite early-year softness in domestic dry-bulk demand, securing new spot business in iron ore and strong seasonal demand for grain shipments in the latter half helped offset lower salt and construction material shipments.
“Our Product Tanker segment had expanded capacity with an additional vessel in operation, while internationally, demand remained steady in our Ocean Self-Unloader segment.
“Looking ahead to 2025, we remain optimistic yet cautious. While we are mindful of potential market disruptions and economic uncertainties, we anticipate stability and growth in most sectors. With nine new vessels entering service in 2025, three in Canada, and a continued focus on delivering value for our customers, we are well-positioned to navigate the opportunities and challenges ahead.”
2025 Business Outlook
In the Domestic Dry-Bulk segment, fleet utilization is expected to be much higher with the addition of significant new domestic steel industry business and more typical winter conditions driving an anticipated recovery in salt volumes. Shipments in the agriculture sector are expected to be strong, while the construction market is likely to remain flat. The new Algoma Endeavour, the twelfth and final Equinox Class vessel, is expected to begin service in early April.
Mr. Ruhl continued: “We expect customer demand in the Product Tanker segment to remain steady in 2025 and for fuel distribution patterns within Canada to support strong vessel utilization for the vessels trading under Canadian flag. The fleet is expected to be in full deployment with all eight Canadian vessels in operation. With the delivery of the first four FureBear newbuilds in 2024, six new tankers remain on order for the joint venture, with delivery expected between early 2025 and 2026. Two additional product tankers will also enter service in early 2025 for our domestic fleet, with the first expected in April followed by the second in May.
“In the Ocean Self-Unloaders segment, five vessels in the Algoma fleet are scheduled for dry-docking throughout 2025, which is expected to have a significant impact on available days. Demand for aggregate, gypsum, and salt is expected to increase, while coal shipments are projected to decline. Steel cutting for the hull of the second of three newbuild ocean self-unloaders took place in January, 2025. The first vessel in this series is expected to be delivered in the third quarter of 2025.”
Turning to the Global Short Sea Shipping segment, Mr. Ruhl commented: “We anticipate steady earnings from the cement fleet, with most assets committed to long-term time charter contracts. The handy-size segment is expected to remain stable with market rates normalizing. Performance from the mini-bulker fleet is projected to remain consistent with its results from 2024. The two newbuild 8,000 deadweight tonne mini-bulkers are expected to be delivered in late 2025 and early 2026. These vessels will bring the newbuilds added to the fleet to six since 2020.”
Reference to Trump tariff agenda
In conclusion, Mr. Ruhl declared: “Global, as well as North American, trade conditions, including trade barriers such as tariffs on certain commodities and vessel-related fees, may disrupt the free movement of goods across Canada and the U.S. or the costs associated therewith. While we remain committed to operational efficiency and adaptability, uncertainties surrounding trade policies could impact the volume of marine shipments. Should these challenges materialize, they may have an effect on the revenue generated from the commodities we transport. We will continue to monitor these developments closely and take proactive measures to mitigate impacts where possible.”
(Photo of self-unloading bulk carrier Algoma Conveyor)