Algoma focuses on reliable service and fleet improvements

(Posted on 07/05/25)

Algoma Central Corporation has reported its results for the three months ended March 31, 2025. Algoma reported revenues of $107,201, compared to revenues of $109,214 in 2024. Net loss for 2025 was $23,280 compared to a net loss of $17,253 for the same period in 2024. Due to the closing of the canal system and the winter weather conditions on the Great Lakes – St. Lawrence Seaway, the majority of the Domestic Dry-Bulk fleet does not operate for most of the first quarter. All amounts reported below are in thousands of Canadian dollars, except for per share data and where the context dictates otherwise.

“Despite global economic uncertainties, Algoma remains steadfast in our commitment to delivering resilient service to our customers,” said Gregg Ruhl, President & CEO of Algoma Central Corporation. “Our ongoing investments in fleet enhancements and strategic growth reflect both our long-term vision and our confidence in the future. For the first time in Algoma’s history, we proudly took delivery of four vessels within a single quarter: the Fure Vesborg, Algoma Endeavour, Algoma East Coast, and Algoma Acadian. These ships will serve key markets across Northern Europe, the Great Lakes, and the Canadian and U.S. east coasts. With 11 vessels currently under construction, of which five are set to arrive in 2025, this milestone underscores our dedication to providing efficient, reliable, and sustainable marine transportation solutions to our valued customers,” added Mr. Ruhl.

Domestic Dry-Bulk segment revenue decreased to $30,551 compared to $31,075 in 2024. Despite a significant decrease in volumes, the impact to revenue was mitigated by the higher revenue days due to the mix of trades. Operating loss increased 4% to $37,160 compared to $35,613 in 2024, driven by higher lay-up costs due to four vessels in planned dry-dock versus one in the prior year period.

Revenue in the Ocean Self-Unloaders segment decreased slightly to $42,725 compared to $43,199 in 2024. This decline was primarily due to a reduction in revenue days driven by increased off-hire time, as the result of higher dry-docking days during the quarter. Operating earnings decreased 23% to $6,445 from $8,354 in 2024, reflecting 4% decrease in operating days driven primarily by the increased off-hire days.

Global Short Sea Shipping segment equity earnings remained flat quarter-over-quarter, with earnings of $1,831 in 2025 compared to $1,832 for the prior year period. Earnings increased in the cement fleet driven by higher revenue days due to fewer dry-dockings, improved operating performance, and two additional vessels compared to the prior year, partially offset by increased dry-docking days in the mini-bulker fleet and exposure to market conditions and weather-delays in the handy-sized fleet.

"While reported revenues declined across several segments this quarter, much of the decrease was due to an increase in planned dry-dockings. Adjusting for these factors, core performance remained strong," said Christopher Lazarz, Chief Financial Officer at Algoma Central Corporation. "Domestic Dry-Bulk experienced increased revenue days due to the mix of trades with higher agriculture volumes, but lower salt cargoes. Despite the larger fleet size, the Product Tankers segment was impacted by higher dry-docking days. Similarly, the Ocean Self-Unloader segment faced more off-hire time also due to additional dry-dockings this quarter. Global Short Sea Shipping equity earnings remained stable year-over-year and our FureBear joint venture continues to generate strong earnings with five vessels in the fleet, underscoring the strength of our diversified portfolio," concluded Mr. Lazarz.