A leading Canadian marine and environmental services provider with a substantial North American commercial profile, Montreal-based LOGISTEC Corporation remains on a robust growth trajectory, its latest financial results to end-September confirm.
For Q3 2023, the numbers show consolidated revenue totalling C$307.2 million, up $23 million or 8.1% from the corresponding quarter of 2022. And for the nine-month period, consolidated revenue amounted to $710 million, up $66.4 million or 10.3%.
Among the highlights: the completion of integration on April 3 by LOGISTEC Stevedoring of Fednav’s Federal Marine Terminals (FMT) for a purchase price of $105 million. In the process, LOGISTEC acquired 11 terminals on the U.S. East Coast, the Great Lakes and Gulf handling bulk, breakbulk, container and project cargo. With the biggest transaction in its history of more than 70 years, LOGISTEC thus expanded its total network to 90 terminals in 60 ports. These include former FMT terminals in such ports as Hamilton, Burns Harbour, Milwaukee, Eastport (Maine), Port Manatee, Tampa, and Lake Charles. Overseeing this extensive terminal network is Rodney Corrigan, president of LOGISTEC Stevedoring.
Whereas LOGISTEC delivered good operational results during the third quarter of 2023, the company’s profits were however negatively impacted by rising interest rates and such factors as higher depreciation and amortization expenses.
Commenting on the financial performance, Madeleine Paquin, president and CEO, said: “This top line growth demonstrates the strength of our extensive network of terminals, our innovative environmental solutions and the ability of our exceptional team to deliver. We are moving into the year’s final stretch with confidence and a renewed energy on executing our plan with discipline and agility.”
Marine Services Revenue Double-digit Increase
Revenue from the marine services segment reached $182.7 million in the third quarter of 2023, up $22 .1 million or 13.7% from the prior year, reflecting the full benefits of the integration of the FMT network. LOGISTEC reports that this increase was partly offset by lower general cargo volumes derived from the wind energy sector in the U.S. East Coast region.
Bulk activities, both in Canada and the USA once again delivered strong volumes and revenue. Port logistics activities performed well, gaining shares in new markets with their last mile initiatives.
“We are seeing different trends from our equity accounted investments,” Paquin indicated. “On the one hand, although this was expected, our container activities are handling lower volumes in 2023 and are not seeing the substantial storage revenue as last year. On the other hand, our other joint ventures are doing well, including our marine transportation services to the northern communities, which are having a very busy year in terms of cargo carried to the Arctic.
“This quarter, our marine services team further strengthened their efforts to organically grow our business, provide innovative services across our extensive network, and attract new customers – resulting in an even more diversified revenue base.”