Higher fuel costs helped cut BC Ferries' quarterly profits 42% for the period ending June 30.
That profit dropped to $8.3 million from $14.4 million in the same period of 2007 despite quarterly revenue rising 7.6% to $171.9 million from $159.8 million.
A 17% rise in operating costs and a 44% increase in interest expenses contributed to the drop in quarterly profits for the ferry company. Operational costs jumped to $95.9 million from $81.9 million due to higher fuel expenses during the period.
Overall, BC Ferries spent an extra $10.4 million on fuel in the quarter.
The increased interest expenses resulted from the company's investment in its fleet and other infrastructure. In the quarter, the company sunk $190 million into its capital assets.