Algoma Central’s global short-sea shipping segment saw higher profit for the second quarter, thanks to a strong mini-dry bulk market.
The division, which owns 18 bulkers under 15,000 dwt and shares interests in 18 cement carriers under 15,000 dwt with Luxembourg-based Nova Marine Carriers, earned CAD 5.16m ($3.86m) during the quarter.
That compares with CAD 9.45m earned during the same period last year which includes CAD 4.78m from selling two ships.
“The higher earnings were driven by increased earnings in the cement fleet due to the larger fleet size this year and strong freight rates, partially offset by lower earnings in the mini-bulker and handy fleets as a result of a softening of freight rates and the smaller mini-bulker fleet this year,” Toronto-based Algoma said.
Second-quarter revenue for the domestic dry-bulk segment increased 27% year over year to CAD 127m as a result of 17% higher volumes.
Second-quarter revenue for the product tankers sector fell 12% from a year earlier to CAD 28.1m, mainly due to higher off-hire days on two vessels which resulted in 7% fewer revenue days.
The ocean self-unloaders segment revenue for the quarter decreased 6% year over year to CAD 47.1m, mainly as a result of higher scheduled dry-dockings causing 8% fewer revenue days, chief executive Gregg Ruhl said in a statement.
“Historically, we know shifting market demand and economic challenges have not stopped Algoma’s progress, but instead made us think differently in order to adapt and effectively move our strategic plan forward.”
Algoma posted CAD 37.1m in net income for the second quarter, down from CAD 47.1m during the second quarter in 2022. Year-over-year revenue rose to CAD 202m from CAD 184m.
For the first half of 2023, the company recorded net earnings of CAD 13.5m, down from CAD 27.5m a year ago. Revenue totalled CAD 314m versus CAD 269m a year earlier.
