Despite an increase in quarterly revenue, BC Ferries' quarterly profit dropped 81% for its first quarter ending June 30, 2007.
Net earnings fell to $14.4 million for the quarter compared with a net profit of $76.2 million in 2006's first quarter. The difference resulted primarily from the $61.3 million extraordinary gain in 2006's first quarter generated by insurance from the sinking of the Queen of the North.
Aside from that, however, net profit was still lower, dropping to $14.4 million in the first quarter of 2007 compared with $14.9 million in the same period a year ago despite a 9.1% increase in revenue.
Revenue for the quarter rose to $159.8 million from $146.4 million mainly due to an increase in revenue from tariffs, service fees and retail. But an 8% increase in operational expenses and a 20% increase in maintenance costs ate into the ferry corporation's bottom line.