These figures are from Oceanex report 2006 RESULTS They may be small in relation to the shipping business but they are not small potatoes Volume for the year was 86,407 TEUs, 0.3% more than 2005 volume of 86,135 TEUs(1). Volume to Newfoundland was up 0.7%: Montreal, with two additional sailings, increased 1.5% whereas Halifax, with eight fewer sailings, was down 0.7%. Return traffic was lower on both services for an overall reduction of 1.3%. Motor vehicle shipments from Halifax increased by 842 units or 4.5% to 19,585 units compared to 2005. Revenue for the year was $124.3 million, an increase of $5.8 million or 4.9% compared to 2005 revenue of $118.5 million. The increase was attributable to higher freight rates, inclusive of fuel surcharge, and an increased proportion of higher revenue Montreal volume. Revenue for 2006 included an insurance recovery of $0.5 million while the Cabot was in dry dock; in 2005, $1.2 million was included in revenue for a similar insurance recovery related to the Sanderling. Operating expenses were $99.2 million, $2.4 million or 2.4% higher than 2005. Higher vessel costs were due to operating a four-vessel fleet for eleven months in 2006 compared to seven months in 2005, and increased insurance and fuel costs. Higher vessel operating costs were, however, partially offset by the reversal of a $1.4 million dry dock provision due to the sale of the Cicero and an insurance recovery of $0.75 million for repairs that had been included in the 2005 additional Cabot dry dock costs of $4 million. Increased equipment maintenance, container refurbishment and additional inland costs incurred for the shipment of time sensitive cargo by road during dry dock periods also contributed to the increase in operating expenses. Selling and administrative expenses were $8.1 million, $0.8 million or 10.3% higher than 2005. The increase was due to higher professional fees, corporate expenses and severance costs due to employment terminations. Amortization of capital assets and deferred financing fees was $6.9 million compared to $6.0 million in 2005; the increase is mostly due to the acquisition of the Avalon in May 2005 and the amortization of deferred financing fees related to the vessel loan.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.