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
2022 Business Outlook
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.
The solid charter rates earned by the mini-bulker fleet over the first three quarters of 2022 are expected to continue throughout the calendar year based on the joint venture’s existing vessel commitments and on our market outlook. This outlook could change if global markets slow appreciably. The cement sector is expected to remain steady for the remainder of the 2022 season and the two additional handy-size bulk carriers, which entered the handy-size fleet in May 2022, are expected to continue to make strong contributions in the fourth quarter.
