"Bermuda Container Line Ltd. experienced a decline of $89,000 or 6% in net earnings for the first half of 2000 compared to the same period in 1999. This decline was despite a $558,000 or 4% increase in consolidated revenues. The major factor leading to the decline in earnings was a very significant increase in fuel costs directly attributable to the high world oil price. Fuel costs for the BCL service more than doubled between 1999 and 2000; going forward the impact of this increase will be offset by the fuel surcharge implemented in June.
The increase in revenue was partly due to small increases in container volume for both the BCL and SISL services and increased breakbulk cargo volume for the SISL service. The BCL service did experience a decline in RO/RO volume but this was expected because of the large volume of heavy construction material moved in the first part of 1999. Revenue was also increased through the sale of surplus reefer containers and improved interest earnings.
Due to favourable world prices for new containers the Directors at their June meeting approved the purchase of a fleet of dry containers to replace the present leased fleet. The cost of this fleet of containers will be in the region of $750,000 and the new containers will be in service by the end of the year. SISL has already begun the process of replacing its leased dry container fleet with owned containers. Hopefully, shareholders will have already seen some of the distinctive green SISL containers."
2000 1999
Revenues $13,439,105 $12,880,908
Expenses $12,082,223 $11,434,618
Net Earnings for the period
$1,356,88 $1,446,290
Net Earnings per share
$0.45 $0.48
Dividends per share
$0.16 $0.14