BC Ferries earnings are up, but don’t expect lower fares
Posted June 17, 2016 3:44 pm.
This article is more than 5 years old.
VICTORIA (NEWS 1130) – Smooth sailing for BC Ferries through the 2016 fiscal year. Net earnings are up $20-million over last year.
BC Ferries is crediting a combination of lower fuel costs, a better BC economy overall and a low Canadian dollar keeping locals vacationing close to home. The corporation is reporting $69.6-million in profits for the 2016 fiscal year, up from $49.1-million dollars the year before.
Unfortunately for customers, that won’t affect fares in the near future.
BC Ferries has a capital plan worth $3.1-billion it has to fund. Their vessels are aging and they are replacing about one per year for the next 12 years.
Ferries had planned to borrow $500-million dollars next year, but Chief Financial Officer Dennis Dodo says they can defer that now. “The less we borrow, the less our borrowing expenses become. So in the future, it is generally going to be a positive impact by reduced borrowing to everybody in the system.”
He says that may put the corporation in a better position to lower fares down the road.
