Cleveland Cascades LtdViganSailors SocietyPort of South LouisianaThe Wolfson Centre for Bulk Solids Handling Technology Bühler GmbH
  • Port of South Louisiana
  • Bühler GmbH
  • Telestack
  • Cimbria
  • Port of Stockton
  • Sailors Society

Algoma to exceed expectations in strong market

Algoma to exceed expectations in strong market

(Posted on 09/11/22)

Algoma Central Corporation has reported its results for the three and nine months ended September 30, 2022. Revenues increased 14% during the 2022 third quarter to $199,327 compared to $174,734 for the same period in 2021 while net earnings increased 6% in the same period. The Company reported 2022 third quarter EBITDA(1) of $73,604 compared to $69,415 for the same period in 2021. All amounts reported below are in thousands of Canadian dollars, except for per share data and where the context dictates otherwise.

"Our strategic approach to maintain disciplined growth and a strong vessel portfolio continues to serve us well," said Gregg Ruhl, President and CEO of Algoma. "Driving our plan forward are our hard working seafarers and shoreside support teams who continue to deliver exceptional service to our customers and long-term value for our shareholders. We had another busy quarter and I am pleased to see the significant recovery of our tanker business and continued strength in our international segments, particularly in our joint ventures. As we are well into the fourth quarter, I am confident Algoma will deliver full-year results beyond our earlier expectations as we expect steady market demand and strong operating performance across all business units to continue through to the end of the year," concluded Mr. Ruhl.

Financial Highlights: Third Quarter 2022 Compared to 2021

  • Net earnings increased 6% to $42,533 compared to $39,984 last year. Basic earnings per share were $1.13 compared to $1.06.
  • Global Short Sea Shipping segment equity earnings increased 60% to $12,103 compared to $7,541 for the prior year driven by increased earnings in the cement and handy-size fleets as well as significant freight rate increases in the mini-bulker fleet that nearly offset the reduced revenue from three less vessels in that fleet. Earnings for the quarter include a $2,922 gain on the sale of two vessels in 2022 compared to a gain of $2,720 on the sale of two vessels in the same quarter in 2021.
  • Revenue for Product Tankers increased 55% to $32,749 compared to $21,186. This was mainly driven by higher fuel cost recoveries and improved customer demand. The increase was also attributable to the addition of one vessel to the fleet during the second quarter that operates internationally under bareboat charter. Despite higher operating costs, operating earnings increased 48% to $5,888 compared to $3,969 driven by a 32% increase in revenue days primarily due to the increased demand.
  • Ocean Self-Unloader segment revenue increased 21% to $49,927 compared to $41,221 driven by higher freight rates, fuel cost recoveries and a 10% increase in Pool volumes. Operating earnings decreased 24% to $7,856 compared to $10,366 in 2021 due to higher operating costs and increased dry-dock expenditures.
  • Domestic Dry-Bulk segment revenue increased 6% to $115,996 compared to $109,591, reflecting increased fuel recoveries and improved overall base freight rates. Despite lower revenue days during the 2022 third quarter, overall volumes were slightly higher offsetting the impact of lower vessel utilization on two vessels. Operating earnings decreased 7% to $30,453 compared to $32,795 driven primarily by higher layup and repair spending to activate idled vessels in preparation for the fall grain harvest in Canada.

2022 Business Outlook(2)

Domestic dry-bulk cargo volumes are expected to be strong across all commodities, driving full fleet utilization for the balance of the year. The Western Canada grain crop size has returned to trend line level which, combined with continued demand for Eastern export capacity due to the Ukraine conflict, has allowed any open capacity to be filled at prices reflecting the strong market conditions. Product Tanker demand is expected to remain steady and we expect the fleet will continue to be well utilized in the fourth quarter.

Customer demand and vessel supply for the Ocean segment is fairly well balanced for the remainder of the year. Aggregate volumes are expected to be impacted by a facility closure in Mexico and the US residential market is expected to slow down but overall construction sector demand remains strong as infrastructure investments are picking up. We are expecting costs to continue to be impacted by inflation and global fuel prices will likely remain higher than normal.

Latest News

Oldendorff Carriers invests in Alpha Ori Technologies

(Posted on 05/12/22)

Oldendorff Carriers, one of the world’s leading dry bulk operators, has signed a deal that will... Read more

NSG GAC's second Swedish ship agency acquisition this year

(Posted on 05/12/22)

GAC Group has acquired Finland-based ESL Shipping's Swedish subsidiary Norra Skeppningsgruppen (NSG),... Read more

Klaveness Digital etablishes Board of Directors

(Posted on 01/12/22)

Norwegian technology company Klaveness Digital has announced the formation of its first Board of Directors... Read more

WinGD cybersecurity type approval from DNV prepares owners for regulations

(Posted on 01/12/22)

Swiss marine power company WinGD has become the first marine engine designer to gain cybersecurity type... Read more

InterManager welcomes IMO commitment on enclosed space risks

(Posted on 29/11/22)

InterManager has welcomed a commitment by the International Maritime Organization (IMO) to review guidance... Read more

North P&I faces up to turbulence with premiums rise

(Posted on 29/11/22)

North P&I Club signals intention to apply a 10% General Increase in 2023/24 premium rates amid swirling... Read more

Pioneer voyage data-sharing to enable carbon emissions reductions

(Posted on 19/11/22)

China Merchants Energy Shipping (CMES), BHP and DNV have signed a Memorandum of Understanding (MOU)... Read more

Safe Bulkers orders additional retrofits of Alfa Laval PureSOx

(Posted on 19/11/22)

In recent years, Greek shipowner Safe Bulkers has retrofitted Alfa Laval PureSOx exhaust gas cleaning... Read more

Fears of Nordics perfect storm unfounded says Swedish Club

(Posted on 13/11/22)

Times are difficult but no need for despair, was the message from Tore Forsmo, Area Manager, Team Norway... Read more

CSM and Marcap to focus on vessel performance optimisation

(Posted on 13/11/22)

Columbia Shipmanagement (CSM) and Marine Capabilities (MARCAP LLC) have signed a Memorandum of Understanding... Read more

Port of StocktonCimbriaTelestackVan AalstTOC EventsTBA Group
  • The Wolfson Centre for Bulk Solids Handling Technology
  • Vigan
  • Van Aalst

Subscribe to our newsletter

Keep up to date with the latest global news in bulk cargo handling and shipping