Algoma Central Corp. (ALC) 2024年年度報告「TSX」.pdf

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1、REN EW202 3ANNUAL REPORTRELIABLE,RESILIENT,SUSTAINABLE.2024 ANNUAL REPORTCertain statements in this document about our current and future plans,expectations and intentions,results,levels of activity,performance,goals or achievements or any other future events or developments constitute forward-looki

2、ng statements.Forward-looking statements are based on estimates and assumptions made by us in light of our experience and perception of historical trends,current conditions and expected future developments,as well as other factors that we believe are appropriate and reasonable in the circumstances,b

3、ut there can be no assurance that such estimates and assumptions will prove to be correct.Many factors could cause our actual results,level of activity,performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements.

4、The purpose of the forward-looking statements is to provide the reader with a description of managements expectations regarding the Companys financial performance and may not be appropriate for other purposes;readers should not place undue reliance on forward-looking statements made herein,recognizi

5、ng that all such forward information is based on assumptions about the future that may not ultimately be borne out and are subject to many risks and uncertainties,including those listed above.Furthermore,unless otherwise stated,the forward-looking statements contained in this document are made as of

6、 the date hereof(unless stated to be as of an earlier date),and we have no intention and undertake no obligation to update or revise any forward-looking statements,whether as a result of new information,future events or otherwise.The forward-looking statements contained in this document are expressl

7、y qualified by this cautionary statement.Management approved the forward-looking financial information as of February 27,2025.Certain figures included herein are non-GAAP measures.Please see our MD&A for further discussion of non-GAAP disclosures.ALL AMOUNTS IN C$THOUSANDS EXCEPT PER SHARE AMOUNTS A

8、ND UNLESS OTHERWISE NOTED.ABOUT US AND OUR VISIONS&VALUESMESSAGE FROM OUR CHAIRMANMESSAGE FROM OUR PRESIDENT&CEO(contd)KEY MOMENTS OF OUR 125TH ANNIVERSARYDIVERSIFICATION&STRATEGIC ADVANCEMENTOUR ROADMAP TO 2030EMPLOYEE GROWTH AND DEVELOPMENT ENSURING A SAFE AND HEALTHY WORKFORCEMINIMIZING OUR ENVIR

9、ONMENTAL FOOTPRINT 2024 FINANCIAL&OPERATIONAL PERFORMANCE BOARD OF DIRECTORS&EXECUTIVE OFFICERS SELECT FINANCIAL&OPERATIONAL HIGHLIGHTSFINANCIAL SECTION MANAGEMENTS DISCUSSION AND ANALYSIS RESPONSIBILITY FOR FINANCIAL STATEMENTS INDEPENDENT AUDITORS REPORT CONSOLIDATED FINANCIAL STATEMENTS AND NOTES

10、IIIIIIVVIIIXIIXIIIXVIIXXIXXIIIXXIXXXXI1202124WHATSINSIDE I I ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORTAlgoma Central Corporation is a leading Canadian marine transportation company,headquartered in St.Catharines,Ontario.We own and operate the largest fleet of dry and liquid bulk carriers on the

11、Great Lakes-St.Lawrence Seaway.Algomas domestic dry-bulk fleet serves diverse industrial sectors like steel production,agriculture,mining,and construction.The domestic product tanker fleet,with eight vessels in Canadian service,safely,reliably,and efficiently moves petroleum products throughout the

12、Great Lakes-St.Lawrence Seaway and Atlantic Canada regions.Algoma also owns and operates ocean self-unloading dry-bulk vessels that operate as part of the worlds largest pool of self-unloaders.Three ocean self-unloaders are currently under construction and are set to replace the oldest Algoma owned

13、vessels in the pool.In addition to these fleets,Algoma holds 50%interests in joint ventures that own diversified portfolios of dry and liquid bulk fleets.Our global short sea shipping segment focuses on niche marine transportation markets and operates a fleet of cement carriers,mini-bulkers,and hand

14、y-size vessels supporting agriculture,cement,construction,and steel industries worldwide.Two newbuild mini-bulkers and one pneumatic cement carrier are currently under construction.Our FureBear fleet is an international joint venture comprising ten tankers,six of which are under construction,and an

15、interest in a foreign-flagged tanker operation comprising two product tankers.Customers include major oil refiners,leading wholesale distributors,and large consumers of petroleum products.For employees,both existing and potential,we work to foster a supportive,rewarding environment in which they cho

16、ose to grow and develop their career until retirement.For customers,we strive to be the go to provider for marine freight services.We do this by providing unsurpassed service and flexibility.When our customers succeed,we succeed.For investors and other capital providers,investing in Algoma offers a

17、rewarding opportunity for sustained growth in the marine sector.With a strategic focus on fleet renewal,innovative designs,partnerships,and environmental sustainability,Algoma emerges as the top choice for investors seeking a forward-thinking and resilient investment in the maritime industry.For ven

18、dors and our business partners,we want them to value their relationship with Algoma because working together builds strength and mutual success.For society,we provide safe,sustainable,secure,and cost-effective transportation of essential goods that North Americans and the world depend on everyday.We

19、 are honest,we are courageous,and we always strive to make the right choice.We believe in our people,we care for our planet,and we work to ensure the prosperity of our stakeholders.We are stronger together.YOUR MARINE CARRIER OF CHOICETMABOUT US OUR VISIONOUR VALUESINTEGRITYSUSTAINABILITYTEAMWORKWe

20、take accountability for our actions,and we are empowered to initiate change.OWNERSHIPPASSIONWe are committed in heart and mind,we are driven,and we are proud.WHAT POWERS OUR JOURNEYWhen I reflect on what has powered Algomas journey for over 125 years,I think of the resilience,dedication,and passion

21、that define our people and culture.Their commitment drives us forward,even in the face of adversity.It is this unwavering dedication that makes it especially meaningful to announce that Algoma has been named one of Hamilton-Niagaras Top Employers for the third consecutive year.This achievement comes

22、 as Algoma continues to prioritize employee well-being through safety initiatives,competitive salaries,comprehensive benefits,training,development,and education opportunities.SAFETY IS A SHARED RESPONSIBILITYFor years,our safety program has focused on helping our seafarers foster a sense of accounta

23、bility and responsibility to protect each other,not just for their own safety,but for the families and friends they have waiting for them at home.At Algoma,we know this is not the responsibility of one person,but a collective effort.It requires strong communication,clear delegation of responsibiliti

24、es,effective policies,and a commitment from every individual to prevent risks and injuries.As leaders,it is our duty to equip our crews with the necessary resources and support to excel in their roles,safeguarding their well-being,and encouraging a culture of shared successes.MESSAGE FROM GREGG RUHL

25、PRESIDENT&CEOI am honoured to be a part of this 125 year old organization,with a rich history of triumphs,challenges,and evolution.I would like to thank the entire Algoma team for their unwavering dedication to innovation and sustainability.Your expertise and commitment sets us apart as a carrier wi

26、th the niche knowledge and diverse capacity to adapt to changing markets,seize new opportunities,and thrive in the industry we know best-short sea shipping.MESSAGE FROM DUNCAN JACKMANCHAIRMAN OF THE BOARDFounded in 1899,Algoma began as a railway company transporting iron ore and timber across Northe

27、rn Ontario.Today,we own and operate the largest fleet on the Great Lakes-St.Lawrence Seaway operating domestically and across our bi-national waterways,as well as a diverse portfolio of fleets that operate internationally.Our 125th year has been a testament to the teamwork and passion that continues

28、 to define us as the Marine Carrier of Choice.These qualities enable us to create positive impacts for our employees,customers,and suppliers across Canada and around the world,reinforcing our legacy of reliability,resiliency,and sustainability.ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORT I IIIn 202

29、4,we continued to improve our online Learning Management System;expanding availability to our Ocean Self-Unloader fleet and upgrading our safety training videos.This system not only enables our seafarers and shoreside staff to access training from anywhere but is also a testament of our commitment t

30、o providing the resources needed to create a safe,supportive,and inclusive environment.PREPARING FOR GROWTHAt the beginning of 2024,Algoma had 17 vessels on order or under construction,a first in our history and an exciting milestone.Today,we are seeing these investments yield results,with five vess

31、els delivered and three more ordered by the end of 2024,and 15 vessels remaining and expected to begin operations between early 2025 and 2027.As we continue to strategically modernize and diversify our fleets,these new additions will enhance stability,reliability,efficiency,and sustainability-reinfo

32、rcing our commitment to serve our customers and the critical industries they serve.With significant growth on the horizon,Algomas leadership team dedicated five days across two planning sessions to develop our Strategic Roadmap to 2030.Since establishing our last five-year plan in 2019,it was time t

33、o set the course for the next chapter.I am proud of the collaborative efforts of our leaders and the insights and vision we developed together.Our key focus areas,outlined on page 12 of this report,will guide our strategic decisions,shape impactful projects for the next five years,and keep us accoun

34、table as we move forward.OUR MARINE STORY IS A GREEN STORYAlgoma is committed to minimizing impacts to water,air,and land from our operations.Since launching our Equinox Class program in 2010,we have invested nearly$1 billion in fleet renewal,enhancing fleet efficiency through the latest and best av

35、ailable technology.Although marine transportation is the most environmentally friendly way of transporting goods,marine shippings full potential has yet to be unlocked.Every day,Algoma,along with industry partners are researching solutions that have the potential to further drive efficiencies,includ

36、ing feasibility studies on wind propulsion,alternative fuels,shorepower,container shipping on the seaway,and the next generation of Lakers.These solutions will need to be tailored to our unique waterways of the Greak Lakes region to ensure the seamless movement of essential goods that feed,fuel,and

37、support North American communities,while also keeping marine competitive.Meaningful decarbonization requires collaboration across the entire industry,and Algoma urges both federal and provincial governments to continue supporting these efforts by streamlining regulations,continuing to provide fundin

38、g for research,and accelerating the development of emerging and proven technologies.By working together,we can unleash the full potential of marine transportation,driving economic and sustainable growth.Gregg Ruhl President&CEOLOOKING INTO 2025Our two newbuild ice-class product tankers,Algoma Acadia

39、n and Algoma East Coast,our 12th and final Equinox Class vessel,Algoma Endeavour,and Ocean-Self Unloader newbuild vessel,Algoma Legacy,are set to arrive in 2025.The two tankers are expected to enter service in the second quarter of 2025 under contract with Irving Oil,servicing Canada and the U.S.eas

40、t coasts.The Algoma Endeavour will arrive on the Great Lakes in April with the Algoma Legacy expected to enter service this fall.As we prepare for the season ahead,I would like to extend my best wishes to our crews for a safe and successful year.Your dedication and commitment to upholding Algomas vi

41、sion and values continues to build our reputation as the Marine Carrier of Choice.III I ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORT-Gregg RuhlPresident&CEO“Algomas legacy is built on 125 years of passion,resilience,and dedication to delivering essential goods that our communities relyon.Thank you

42、to the Bear Family for being the driving force behind our successes and making us the Marine Carrier of Choice.”AlgoCanada sailing down the St.Clair River,taken by Windsor Aerial Photography.ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORT I IVV I ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORTKEY MOMENT

43、SIN OURANNIVERSARYYEAR.THAlgoma Chief Engineers at our 2024 Captain and Chief Engineers Conference.The Algoberta sailing upbound the Welland Canal.The Bear Family celebrates Algomas 125th anniversary.The Fure Vanguard being delivered in February,2024Captain Robert Loveless and Chief Engineer Stephan

44、e Gilbert are awarded the Top Hat and officially commence the 66th St.Lawrence Seaway Navigation Season at Lock 3 in St.Catharines,ON.Training Captain Dale Bruce(front)and Captain Wallace James(back)The Algoberta sailing upbound the Welland Canal.Algoma is awarded five grants from Transport Canadas

45、Green Shipping Corridor Program.From L to R:MP Chris Bittle;President&CEO of Algoma Gregg Ruhl;and Parliamentary Secretary to the Minister of Transport,Vance Badawey.Crew members celebrating as the Algoma Conveyor becomes the first downbound vessel of the 66th St.Lawrence Seaway navigation season at

46、 Lock 8 in St.Catharines,ON.The Algoma Bear crew takes shoreside employees for a tour of the newly delivered vessel.The Algoma East Coast is launched and prepares for sea trials.Crew members provide the Bear Family a tour of the Algoma Bear during Algomas 125th anniversary celebration.The Bear Famil

47、y celebrates Algomas 125th anniversary.Vll I ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORTFure Vanguard,the first of 10 newbuilds delivered to FureBear,bunkering LNG and making her first delivery in Rotterdam,NetherlandsNUMBER OF VESSELS ON ORDER/UNDER CONSTRUCTION(AS OF DECEMBER 31,2024 AND INCLUDE

48、S JOINT VENTURES)NUMBER OF NEWBUILD VESSELS DELIVERED*(SINCE 2013 AND INCLUDES JOINT VENTURES)*Domestic Dry-Bulk includes one vessel under management.STRATEGIC ADVANCEMENT DIVERSIFICATION&ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORT I VIIIOur commitment to growth and market diversification strength

49、ens our resilience,ensuring long-term value for our customers,employees,investors,and communities.By leveraging both our existing fleet and our strategic growth initiatives,we remain well-positioned to seize opportunities and navigate the challenges ahead.TOTAL NUMBER OF VESSELS*(AS OF DECEMBER 31,2

50、024 AND INCLUDES JOINT VENTURES)126312Domestic Dry-BulkDomestic Product TankersInternational Product TankersOcean Self-UnloadersCement CarrierMini-BulkersThe Fure Vyl departing the shipyard in early December,2024 to serve Northern European markets.1998630182Domestic Dry-BulkOcean Self-UnloadersDomes

51、tic Product TankersInternational Product TankersCement CarriersMini-BulkersHandy-Size Bulkers*Equinox Class includes one vessel under management.11444Equinox ClassMini-BulkersInternational Product TankersCement CarriersIX I ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORT5As of December 31,2024 five ve

52、ssels out of 20 on order or under construction were delivered.Algoma took delivery of the Algoma Bear in the second quarter of 2024.Throughout the year,Algoma took delivery of four newbuild FureBear vessels,the Fure Vanguard,Fure Viken,Fure Viskar,and Fure Vyl.VESSELS DELIVEREDIN 2024EQUINOX CLASS S

53、ELF-UNLOADEROur domestic dry-bulk fleet renewal program received a new addition in 2024 with the delivery of the Algoma Bear,a 740 ft seawaymax self-unloader,in April.The last addition,the Algoma Endeavor,a 740 ft foward mounted self-unloader,is expected to be delivered early 2025.This will bring ou

54、r Equinox Class vessels to a total of 12 in the Class,including one owned by G3 Canada Limited,since the first vessel was delivered in 2013.EQUINOX CLASS Two 37,000 DWT ice-class product tanker vessels are currently under construction at the Hyundai Mipo shipyard in South Korea.Both these vessels wi

55、ll be delivered in March,2025.Vessels will be entered on long-term charters to Irving Oil under Canadian flag,servicing the companys refinery in Saint John,New Brunswick with deliveries to Canada and the U.S.east coasts.DOMESTICPRODUCT TANKERSIn 2023,Algoma placed a newbuild order for three methanol

56、-ready Kamsarmax-based ocean self-unloaders.These vessels will operate as part of the worlds largest pool of ocean-self unloaders,be replacements for the Companys oldest vessels in the pool,and become the model for the next generation.The three vessels are expected to be delivered between 2025 and 2

57、027.OCEAN SELF-UNLOADERSFour out of 10 newbuild dual-fuel ice-class 17,999 DWT climate-friendly product tankers were delivered and are now servicing Northern European markets.The other six are expected to be delivered throughout 2025/2026.FUREBEARPRODUCT TANKERS1The NovaAlgoma Short Sea Carriers new

58、-build program anticipates the delivery of two 8,800 DWT mini-bulkers in 2025 and 2026.In July,NovaAlgoma placed an order for a 38,000 DWT methanol-ready pneumatic cement carrier.She will be the largest cement carrier in the world,and is expected to arrive in 2027.NOVAALGOMANEWBUILDSLEGENDVESSEL DEL

59、IVERED IN 2024VESSEL ON ORDER OR UNDER CONSTRUCTION IN 2024ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORT I XAs of December 31,2024 there were 15 vessels under construction in three countries.Four out of the 15 vessels are part of the Companys fleet renewal plan and the remaining 11 are growth opport

60、unities.VESSELS ON ORDER/UNDER CONSTRUCTION IN 202415FUREBEAR PRODUCT TANKERSOCEAN SELF-UNLOADERSDUAL-FUEL CLIMATE-FRIENDLY PRODUCT TANKERSEQUINOX CLASS SELF-UNLOADERICE-CLASS PRODUCT TANKERS41236SHORT SEAMINI BULKERS2PNEUMATICCEMENT CARRIER1Algoma Intrepid sailing in the St.Clair River.Photo taken

61、by Captain Costello.vCONTINUING TO EARN OUR TITLE ASAs a leader in marine transportation,we embrace innovation,adaptability,and excellence in service.Our commitment to our vision and values drives our decisions,inspires our efforts,and strengthens our relationships with customers,employees,and stake

62、holders.Through ongoing growth and operational excellence,we reinforce our position as the trusted and preferred carrier in the marine industry.THE MARINE CARRIER OF CHOICETMvCONTINUING TO EARN OUR TITLE ASOURROADMAP TO 2030IntegritySustainabilityTeamworkOwnershipPassionSupport our people to perform

63、 at their bestComply with regulation and shape public policyAchieve efficiencies in costs and resourcesEnsure optimal investment managementDeliver maximum value to our customersYOUR MARINE CARRIER OF CHOICETMVALUESFOCUS AREASVISIONAt Algoma,we target zero harm by creating a workplace where everyone

64、has the knowledge and resources that help ensure their own safety and the safety of others,both physically and mentally.Every day,we work to foster an environment where learning,growth,and well-being are not just encouraged but embedded in our culture.&DEVELOPMENTEMPLOYEE GROWTH298,625TRAINING HOURS

65、 LOGGED ON LMS$688,000DONATED TO ALGOMA SCHOLARSHIP RECIPIENTS SINCE 1993Captain Jeremie Tessier and Kyle Fernandes,Wheelsman aboard the Algoma Bear.Photo taken by Kelly Noseworthy,HOPA TRAINING AND MENTORSHIPThis year,Algoma significantly expanded its online Learning Management System(LMS).This is

66、a centralized resource for learning and training materials that support the career and skills development of our employees.In June,2024,we introduced the LMS to our Ocean Self-Unloader crew,with a goal to ensure consistency in knowledge and expertise provided across all fleets.This expansion is curr

67、ently ongoing and expected to be fully completed by the first quarter of 2025.New and more interactive courses were also added to the system,ranging from health and safety training to environmental awareness,totalling 70 e-learning courses.Since its launch in 2022,our employees have completed 11,945

68、 courses,totalling approximately 298,625 hours logged in the LMS.Algoma also introduced new shipboard training courses and reinstated paused programs,modernizing them to reflect the latest industry innovations.From galley operations to ship handling and cargo maintenance,these courses ensure our cre

69、ws are equipped with the skills needed to excel in their dynamic and evolving work environment.Early in the year,we hosted our second Leadership Training Course,designed to empower managers,both shipboard and shoreside,with the critical skills needed to lead with confidence.Led by two Dale Carnegie

70、instructors,this program focused on key areas such as personal leadership,time management,building trust and rapport,and navigating disagreements with professionalism.By investing in our leaders,were strengthening our teams,enhancing collaboration,and driving success across the organization.PROFESSI

71、ONAL DEVELOPMENTAs Algoma grows and evolves,we want our employees to grow and evolve with us.Thats why we actively support and encourage our team in various ways to continue their education,both shipboard and shoreside.Looking forward into 2025,we have finalized a support program designed to help un

72、licensed employees pursue new Certificates of Competency,as well as help Officers upgrade their existing certifications.Algoma is proud to partner with 5 marine schools across Canada,providing cadets with hands-on experience for over 15 years.This year,we hosted 84 cadets,who collectively gained 709

73、1 days of practical training aboard our vessels,helping to shape the next generation of officers.We annually support students in nautical science and marine engineering programs,and awarded scholarships to 10 cadets in 2024.Encouragement and support for post-secondary education also extends to the k

74、in of Algoma employees,and has for over 30 years,totaling$688,000 donated since 1993.This year we provided scholarships to 13 students.A group of Algoma Chief Cooks and Second Cooks attending Galley Management training at Georgian College.Algoma Captains and Chief Engineers listening to a session at

75、 our annual 2024 Captains and Chief Engineers Conference.“Your generosity will help me gain the educational skills and experience I need to become a successful Navigation Officer.”-Megan F.,scholarship recipient&Marine Institute student.ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORT I XIVALGOMA CENTR

76、AL CORPORATION 2024 ANNUAL REPORT I XVEMPLOYEE ENGAGEMENTEmployee engagement is an essential part of our continuous efforts to improve company connection and in 2024,Algoma made significant strides in fostering a stronger connection for and between our shipboard and shoreside workers.A key focus was

77、 our 125th anniversary celebration,a fun-filled picnic,and an opportunity for employees and their families to experience life on board the Algoma Bear.To further cultivate open and honest dialoguebetween ship and shore workers,Algoma encourages staff at all levels to conduct ship visitsand report ba

78、ck with personal experiences and key learnings from discussions with crewTOP EMPLOYER AWARDAlgoma was proudly selected as one of Hamilton-Niagaras 2025 Top Employers.This marks the third year in a row Algoma has achieved this special recognition and highlights our continued commitment to creating an

79、 exceptional workplace,fostering a culture of inclusivity,investing in employees well-being,and developing our workforce for the future.“After 28 years,I am still amazed at Algoma,our resilience,our ability to change and alter our course to ensure success.Im proud to be an Algoma employee and celebr

80、ate 125 years.”-Gabe Ross,Director,Insurance.This annual award program,organized by Canadas Top 100 Employers,evaluates companies that excel in several key areas,including the following:Work atmosphereEmployee training&developmentEmployee engagement&communicationsCompensation&benefitsHealth&wellness

81、Community involvement members.In 2024,director level and above employees,conducted 17 visits with a purpose of building connections and coming together as one team.Every February,Algoma hosts its annual Captains and Chiefs conference,a three-day event packed with training,networking opportunities,an

82、d safety meetings.This initiative is another example of how we are committed to fostering growth and development opportunities.We also revamped and enhanced our communication channels,including social media,the company website,and newsletters,keeping the Bear Family informed and connected.More than

83、just updates,our refreshed communications create a space where employees can celebrate service milestones,honour retirees,share stories,and get to know their colleagues.Additionally,Algoma actively engages with its employees by conducting bi-annual employee engagement surveys and is preparing to con

84、duct one in 2025.These surveys provide valuable feedback that helps shape a number of employee recommended initiatives.Featured L to R:Gabe Ross,28 years of service,and Brooke Cameron,Director,Fleet Personnel,28 years of service,aboard the Captain Henry Jackman in 1996.New year.New look.Crew members

85、 celebrating as the Algoma Sault officially commences the 66th St.Lawrence Seaway navigation season at Lock 3 in St.Catharines,ON.Randy Chislett,Ordinary SeamanHEALTHY WORKFORCEENSURING A SAFE&At Algoma,safety is a fundamental value ingrained in everything we do.We continually prioritize the well-be

86、ing of our employees,customers,and communities.We believe that fostering a culture of safety protects lives,builds trust,and sustains long-term success.Julien Caron,3rd Engineer&Ponnappa Kademada,Chief Engineer aboard the Algoma Bear.Photo taken by Kelly Noseworthy,HOPA Ports.INJURY PREVENTIONAt Alg

87、oma,the safety and well-being of our employees remain our top priority.Last year,we went back to basics,focusing on the fundamentals of risk management and prevention.This year,we built on that foundation and remained focused on enhancing accessibility,quality,and diversity of safety resources acros

88、s all fleets.We continue to promote both physical and mental wellness,expand access to training,and encourage proactive safety engagement.Our initiatives include rewarding the reporting of hazard identifications and near misses,ensuring regular circulation of safety alerts andTRAININGTo enhance our

89、training efforts,we expanded our Learning Management platform to include our ocean crew,and expanded topics including indepth environmental practices,employee onboarding,as well as modernized our health and safety content.This online tool enables employees to access training anytime and from anywher

90、e.GOLD FLAG REWARDSAlgomas Gold Flag program is designed to recognize and reward vessels that consistently uphold the highest operational standards for at least 12 consecutive months.This program aims to incentivize excellence in safety performance,incident reduction,and customer value delivery acro

91、ss our owned fleets,both internationally and domestically.As of December 2024,we had 10 gold flag flying ships,with 24 more in good standing.SAFETY MANAGEMENT SYSTEMOur safety culture is built on our certified Safety Management System(SMS),meeting the global International Safety Management Code and

92、OHSAS 45001 standards.These standards aim to enhance employee safety,mitigate risks,and foster safer working environments through systematic risk assessment and management.We have implemented various measures to ensure crew safety,actively encouraging and rewarding teamwork and the effective use of

93、our safety tools.STRIVE TOGETHER NEWSLETTER2024 marks the second year of Strive Together,Algomas monthly safety newsletter.It features crew submissions,off-the-job safety tips,safety alerts,and is now distributed monthly to both our ocean and domestic fleets.It effectively raises awareness and engag

94、ement across our operations.*Graph above shows Lost Time Injuries recorded for vessels underAlgomas technical management.Safety Management Manual reviews,and providing employees with the tools needed to maintain a safe working environment.ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORT I XVIIIHEALTH A

95、ND WELLNESSAlgoma is committed to supporting the health and wellness of our employees,ensuring they have access to the care and resources they need.In 2024,we expanded healthcare access in various ports,allowing crew members to receive timely medical attention.We also introduced an enhanced benefits

96、 program for our shoreside team that now empowers employees to choose a package that best suits their needs.Through virtual healthcare,employees have 24/7 access to medical professionals,mental health specialists,and prescription services,even in remote areas.Additionally,our Employee and Family Ass

97、istance Program(EFAP)continues to provide confidential support for mental health,family planning,financial counseling,and workplace challenges,with ongoing informational sessions to help employees navigate personal and professional well-being.COMMUNITY IMPACTCommunity has been a key part of Algomas

98、history and in 2024,the Bear Family once again demonstrated their incredible generosity and commitment to supporting those in need.Through a variety of fundraising events and employee pledges,Algoma employees raised$55,250 for the United Way.With our Company match,we were able to donate a total of$1

99、10,501.Every dollar raised contributes to critical programs and services provided to help improve lives in communities across Canada where our employees live and work.The theme for Earth Day in 2024 was Planet vs Plastic and Algoma proudly joined the movement against plastic pollution at the Welland

100、 Canal during our annual clean-up.Together,a group of employees collected a bag of garbage each along locks two,three,and four of the Welland Canal.In August,Algoma proudly celebrated our 125th anniversary with a special event at H.H.Knoll Park in Port Colborne,ON,bringing together nearly 400 employ

101、ees and theirAlgoma participating in United Ways Backpack for Kids program,August 2014.The Algoma Central Railway sponsored baseball team in 1921.Community involvement has always been a key part of Algoma.XIX I ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORTimmediate family.As part of our commitment t

102、o support our local community,we proudly sourced from local vendors,from entertainment to catering,reinvesting into the local economy.To ensure everyone in the Bear Family could take part in this milestone celebration,employees at our Fort Lauderdale office enjoyed a special dinner,while our crews w

103、ere treated to a meal of their choice aboard their vessels.Later in August,Algoma partnered with United Way Niagara and Beatties to help equip Niagara students for the school year through the Backpack for Kids program,which provides essential school supplies to children and youth from low-income hou

104、seholds.This year,Algoma volunteers filled 2,500 backpacks.Starting in December,Algoma also participated in United Ways After School Matters program.The program organized a toy drive,where children shared their gift wishes.Algoma employees stepped up,purchasing 44 gifts for children aged 7-12.Manage

105、r,Sales&Marketing Shayne Crawford-Cummings at Algomas Captains&Chiefs meetings-photo by Mike Black PhotographyThe Figure Four performing at Algomas 125th Anniversary celebration.Algoma sponsors the Para Hockey Tournament in Port Colborne,ON.Algoma volunteers pack 2500 backpacks for United Ways Backp

106、ack for Kids program.Algoma celebrates 125 years with employees and loved ones.Volunteers donate over 40 gifts to children during the holiday season for United Ways After School Matters program.Members of the Bear Family during their tour of the Algoma Bear.The Algoma Buffalo celebrating 125 years w

107、ith a pizza party.Volunteers collect a bag of garbage each along the Welland Canal.Employees celebrate Halloween with a charity fundraising lunch.*Compared to marine diesel fuel.$600 MILLIONINVESTED IN EQUINOX CLASS VESSELS SINCE 20101 ENVIRONMENTALFOOTPRINTMINIMIZING OUROur decarbonization strategy

108、 focuses on fleet renewal,energy efficiency,new technologies,and operational optimization.We continue to invest in solutions that will help us achieve our greenhouse gas reduction targets,with a goal of reducing emissions intensity 40%by 2030 and reaching net-zero by 2050.76%REDUCTION IN GHGLIFE CYC

109、LE CARBON EMISSIONS ACHIEVED WITH BIOFUEL*40%REDUCTION INGHG INTENSITY ONVESSELS CLASSNEARLY Algoma complies with ballast water and biofouling management requirements best practices and relevant Green Marine program indicators to mitigate the risk related to aquatic invasive species.We have installe

110、d ballast water treatment systems(BWTS)on 22 of our vessels-our entire Ocean Self-Unloader fleet of 8,as well as 14 in our domestic fleet.These systems represent a significant investment,and Algoma continues to work closely with researchers,regulatory agencies,and manufacturers to advance understand

111、ing of the widely acknowledged challenges related to the operation and efficacy of BWTS in the unique environment of the Great Lakes.AQUATIC INVASIVE SPECIESIn 2023,Algoma successfully trialed biofuels on five vessels.This fuel,sourced from crop wastes,results in a 76%reduction in life cycle GHG emi

112、ssions compared to marine diesel fuel.Building on this success,Algoma continued its use in 2024 with the Algoberta becoming the first product tanker in our domestic fleet to bunker biofuel B19 and the Tim S.Dool continuing to operate on B100.Currently,Canadian regulations have not finalized the fram

113、ework to allow the lifecycle benefits of biofuel to be recognized.Despite these regulatory challenges,Algoma remains committed to exploring biofuels as a potential short-term transition to net-zero marine emissions.A large component of our carbon reduction strategy thus far has been fleet renewal in

114、vesting nearly$600 million in 11 new Equinox Vessels into our Domestic Dry-Bulk fleet since 2010.The final vessel in this class,the Algoma Endeavour,is nearing the end of construction as of this writing and is expected to be delivered in early 2025.These vessels were designed with advanced energy ef

115、ficiency improvements,each achieving an average 40%reduction in carbon intensity compared to the ships they replaced.Our fleet renewal and growth efforts have expanded to focus on preparedness for alternative fuels as they become more readily available.We are currently building six methanol-ready ve

116、ssels:three for our Ocean Self-Unloader fleet;two domestic tankers on long-term charters to Irving Oil;and one cement carrier for our NovaAlgoma joint venture.We have also built four LNG and LBG(when possible),dual-fuel climate-friendly and shore power ready product tankers,with six more under const

117、ruction,for our joint venture FureBear,in partnership with Furetank.FLEET RENEWALALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORT I XXIIUnder Transport Canadas Green Shipping Corridor Program,Algoma received grant funding for five studies to support research on the feasibility of using alternative fuel

118、s and technologies in the Great Lakes region,including methanol and biofuel.The study on the feasibility of using methanol for Laker self-unloaders is nearly complete,confirming that a dual-fuel system(methanol and diesel)could be implemented with minimal cargo impact.Current cost is very high and a

119、vailability is low for green methanol,however,both these factors are forecasted to improve with more scaling and technology improvements.Studies on wind-assisted propulsion and shore power are also underway.Early modelling results demonstrate improved propulsion efficiency across certain wind condit

120、ions and locations,but also show that the carbon reduction opportunity may be limited in scope.Similarly,shore power could have potential to cut emissions in certain trades and locations,however,there are several barriers to overcome,including sourcing green electricity as well as aging ports and do

121、cks infrastructure.The studies for a container tug-barge and next generation Laker design are ongoing.THE GREEN SHIPPING CORRIDOR PROGRAMBIOFUEL TRIALS FINANCIAL PERFORMANCE 2024$703,444NET EARNINGSFINANCIAL RESULTS Renewed market demand,stable growth,and increased capacity drove strong year-end res

122、ults.Internationally,the Ocean Self-Unloaders segment saw strong earnings,benefiting from full fleet utilization and significantly fewer dry-dock days in 2024 compared to 2023.In the Global Short Sea Shipping segment,higher equity earnings included a$13,015 net impairment reversal.Excluding this,ear

123、nings were slightly lower,impacted by reduced rates in the handy-size and mini-bulker fleets,though partially offset by improved cement fleet performance and the net addition of one new asset.Domestically,the Product Tankers ADJUSTED RETURN ON EQUITY(ROE)*REPORTED REVENUESEBITDAREPORTED REVENUES$848

124、,965FREIGHT REVENUES(1)$200,494EBITDA$2.29BASIC EPS(1)Freight revenue includes our proportionate share of freight revenue from our respective joint ventures and excludes revenue$-$100,000$200,000$300,000$400,000$500,000$600,000$700,000$800,000202220232024*Please refer to Adjusted Performance Measure

125、s on page 6 of the Managements Discussion and Analysis for further details.segment experienced higher rates and demand,supported by an additional vessel in operation.Domestic Dry-Bulk segment revenue declined due to lower salt and construction material volumes,partially offset by higher rates.During

126、 the latter half of the year,domestic dry-bulk demand rebounded with iron ore spot cargoes and strong seasonal grain shipments.For full commentary,refer to our 2024 Managements Discussion and Analysis,starting on page 1.$-$20,000$40,000$60,000$80,000$100,000$120,000$140,000202220232024$-$50,000$100,

127、000$150,000$200,000$250,0002022202320240%5%10%15%20%202220232024XXIII I ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORTOPERATIONAL PERFORMANCE 2024 VS.2023OUTLOOK FOR 2025Looking ahead to 2025,the Company remains optimistic yet cautious.While we are mindful of potential market disruptions and economic

128、 uncertainties,we anticipate stability and growth in most sectors.With nine new vessels entering service in 2025,three in Canada,and a continued focus on delivering value for our customers,we are well-positioned to navigate the opportunities and challenges ahead.For more details on the 2025 outlook,

129、please refer to pages 7-11 of the Managements Discussion and Analysis.Algoma transported 42 million metric tonnes of dry and liquidcargo 41 billion tonne-kilometres throughout the GreatLakes-St.Lawrence Seaway and internationally in 2024.Figures above include the Domestic Dry-Bulk,Product Tanker,and

130、 Ocean Self-Unloader segments only.The Algoma Endeavour conducting sea trials in late February,2025.ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORT I XXIVOPERATIONAL PERFORMANCE DOMESTIC DRY-BULKVOLUMES(MILLIONS METRIC-TONNES)FREIGHT REVENUE(MILLIONS)REVENUE DAYSVESSEL PRODUCTIVITY(%)*19Number of vess

131、els at the end of 2024 and includes one managed vessel.*Total number of days that vessels earned revenue expressed as a percentage of available operating days.$375,159REPORTED REVENUES$31,696NET EARNINGS$70,143EBITDAThe Domestic Dry-Bulk segment serves a wide variety of major industrial sectors thro

132、ughout the Great Lakes,St.Lawrence Seaway.This includes iron and steel manufacturers,construction aggregate producers,cement and building material suppliers,salt mining,and agricultural product distributors.95969501020304050607080901002024202320220100020003000400050006000202220232024$-$50$100$150$20

133、0$250$300$350$400$450202220232024Iron/SteelConstructionAgricultureSaltOther0510152025202220232024Iron/SteelConstructionAgricultureSaltOtherXXV I ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORTOPERATIONAL PERFORMANCE PRODUCT TANKERSREVENUE DAYSVESSEL PRODUCTIVITY(%)*8Number of vessels at the end of 202

134、4.The Product Tankers fleet consists of eight domestic product tankers employed in Canadian flag service.The segment also includes the Companys 50%interest in an international joint venture comprising ten tankers,six of which are under construction,and an interest in a foreign-flagged tanker operati

135、on comprising two product tankers.Customers include major oil refiners,leading wholesale distributors,and large consumers of petroleum products.$148,347REPORTED REVENUES$11,658NET EARNINGS$31,784EBITDAFREIGHT REVENUE(MILLIONS)*Total number of days that vessels earned revenue expressed as a percentag

136、e of available operating days.0204060801001201401602022202320249795960102030405060708090100202420232022DOMESTICINTERNATIONAL JOINT VENTURENET EARNINGS(MILLIONS)6Number of vessels at the end of 2024.$0.00$0.50$1.00$1.50$2.00$2.50$3.00$3.502023202405001,0001,5002,0002,5003,000202220232024202220232024A

137、LGOMA CENTRAL CORPORATION 2024 ANNUAL REPORT I XXVIOPERATIONAL PERFORMANCE OCEAN SELF-UNLOADERPOOL VOLUMES(MILLIONS METRIC-TONNES)REVENUE(MILLIONS)REVENUE&DRY-DOCK DAYSVESSEL PRODUCTIVITY(%)*9Number of vessels at the end of 2024The Companys international Ocean Self-Unloader segment consists of eight

138、 ocean-going self-unloading vessels and a 25%interest in a ninth self-unloader.The eight wholly owned vessels are part of the worlds largest pool of ocean-going self-unloaders,which at the end of 2024 totalled 18 vessels.$177,185REPORTED REVENUES$39,378NET EARNINGS$66,325EBITDA*Total number of days

139、that vessels earned revenue expressed as a percentage of available operating days.$-$20$40$60$80$100$120$140$160$180$2002022202320240510152025202220232024GypsumCoalAggregatesOther99989902040608010020242023202205001,0001,5002,0002,5003,0003,500202220232024Days on Dry-DockRevenue DaysXXVII I ALGOMA CE

140、NTRAL CORPORATION 2024 ANNUAL REPORTOPERATIONAL PERFORMANCE GLOBAL SHORT SEA SHIPPINGJOINT VENTURE REVENUE(MILLIONS)The Global Short Sea Shipping segment,which consists of the Companys NovaAlgoma joint ventures,focuses on niche marine transportation markets featuring specialized equipment or service

141、s.The cement carrier fleet(NACC)operates pneumatic cement carriers servicing large global cement manufacturers that support infrastructure projects.The short sea mini-bulker fleet(NASC)comprises owned ships,chartered vessels,and vessels operated under third party management contracts.The fleet suppo

142、rts the agricultural,cement,construction,energy,and steel industries worldwide.The handy-size fleet(NABH)is an opportunistic vessel sales and purchase venture.NUMBER OF OWNED VESSELS(AT YEAR END)$268,391FREIGHT REVENUES(1)$32,822EQUITY EARNINGS(2)$45,004EBITDA(2)(1)Revenue from the Global Short Sea

143、segment is not included in our consolidated reported revenue figure.Freight revenues shown is 100%of joint venture revenue.(2)Net earnings and EBITDA shown includes the Companys 50%share of net earnings,adjusted for amortization arising from vessel purchase price allocation and intangibles.$-$50$100

144、$150$200$250$300202220232024051015202530NACCNASCNABH202220232024ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORT I XXVIIIRICHARD B.CARTY(1)(2)(3)Toronto,Ontario Vice President,General Counsel&Corporate SecretaryE-L Financial Corporation LimitedE.M.BLAKE HUTCHESON(1)(3)Toronto,Ontario President&Chief Ex

145、ecutive Officer OMERS DUNCAN N.R.JACKMAN(2)(4)(5)Toronto,Ontario Chairman,President&Chief Executive Officer E-L Financial Corporation LimitedTRINITY O.JACKMAN(2)(3)Toronto,Ontario Professor of HistoryYork University MARK MCQUEEN(1)Toronto,Ontario Business ExecutiveCLIVE P.ROWE(1)(2)(4)(5)Gulf Stream

146、,Florida Corporate DirectorGREGG A.RUHL(4)Buffalo,New YorkPresident&CEOAlgoma Central CorporationERIC STEVENSON(2)(3)(5)Toronto,Ontario Venture Capitalist&Co-Founder Perseverance Marine COMMITTEES:(1)Member of the Audit Committee(2)Member of Corporate Governance Committee(3)Member of the Environment

147、,Health&Safety Committee(4)Member of the Executive CommitteeJEFFREY M.DEROSARIO P.ENGSenior Vice-President,Commercial STEVE WRIGHTExecutive Vice-President,Operations&Technical JENS GRNNING(3)(5)Copenhagen,DenmarkCorporate DirectorMATS H.BERGLUND(3)(5)Gothenburg,Sweden Corporate Director DIRECTORSBOA

148、RD OFEXECUTIVEOFFICERSDUNCAN N.R.JACKMANChairman GREGG A.RUHL President&Chief Executive Officer CHRISTOPHER A.L.LAZARZ CPA,CAChief Financial Officer J.WESLEY NEWTON LLBExecutive Vice-President,Strategy&Business Development XXIX I ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORTEXECUTIVEOFFICERSDUNCAN N

149、.R.JACKMANChairman GREGG A.RUHL President&Chief Executive Officer CHRISTOPHER A.L.LAZARZ CPA,CAChief Financial Officer J.WESLEY NEWTON LLBExecutive Vice-President,Strategy&Business Development XXIX I ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORTNACC Capri sailing towards the Bosphorus Strait in Ista

150、nbul,Turkey.ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORT I XXX Algoterra sailing in the Detroit River.Taken by Windsor Aerial Photography.Select Financial&Operational StatisticsFor the years ended December 31202420232022Financial Performance Total reported revenues$703,444$721,220$677,942 Freight r

151、evenues(1)848,965 860,730 814,864 Operating earnings75,145 74,532 102,297 Net earnings91,638 82,870 119,966 Adjusted net earnings(2)78,623 82,870 98,931 Basic earnings per share2.29 2.15 3.17 Adjusted basic earnings per share(2)1.97 2.15 2.61 Diluted earnings per share 2.29 2.00 2.89 Adjusted dilute

152、d earnings per share(2)1.97 2.00 2.40 Free cash flow(3)77,097 66,067 99,192 EBITDA(4)200,494 186,112 204,961 As at December 31Common shares outstanding40,567,816 38,649,996 38,001,872 Total assets1,523,953 1,344,156 1,365,697 Total long-term financial liabilities334,084 377,021 402,354 Financial Rat

153、iosProfit margin 10.68%10.33%15.09%Adjusted profit margin 10.68%10.33%12.91%Debt to equity ratio0.37 0.48 0.55 Return on equity(ROE)(5)10.92%11.02%17.56%Adjusted return on equity(adjusted ROE)(2)9.37%11.02%14.48%Domestic Operational Performance(6)(7)Statistical operating data Number of shipboard emp

154、loyees 1,519 1,551 1,492 Total distance travelled by vessels(nautical miles)1,308,307 1,325,305 1,237,899 Total cargo carried(metric tonnes in thousands)41,699 44,872 43,565 Tonne-kilometre travelled(in millions)40,654 41,803 45,699 Deadweight tonnage(metric tonnes in thousands)1,306 1,297 1,290 Num

155、ber of vessels in total shipping fleet 353434Number of vessel port calls 2,844 3,021 2,836 Operating days10,472 10,760 10,177 Vessel productivity Domestic Dry-Bulk 95%96%95%Product Tankers 97%95%96%Ocean Self-Unloaders 99%98%99%Vessel capacity utilization Domestic Dry-Bulk 90%98%88%Product Tankers 1

156、00%100%92%Ocean Self-Unloaders 100%100%100%Safety Indicators(8)Lost time injury frequency(per 200,000 hours worked)1.18 0.77 0.70 Lost time injuries 14 11 10(1)Please refer to the section entitled Select Financial and Operational Highlights-Financial Highlights for further explanation.(2)Please refe

157、r to the section entitled Adjusted Performance Measures in the MD&A for an explanation of this non-GAAP measure.(3)Please refer to the section entitled Important Information About This MD&A-Free Cash Flow for an explanation of this non-GAAP measure.(4)Please refer to the section entitled Select Fina

158、ncial and Operational Highlights-EBITDA for an explanation of this non-GAAP measure.(5)Please refer to the section entitled Important Information About This MD&A-Return on Equity for an explanation of this non-GAAP measure.(6)Operational performance relates only to our Domestic Dry-Bulk,Product Tank

159、ers and Ocean Self-Unloaders segments and do not include the fleets in which we participate through joint ventures.(7)Statistical operating data and safety indicators are unaudited and based on data available at such time and are subject to change as more complete information becomes available.Defin

160、itions of each measure are included within the Companys Managements Discussion&Analysis in the Select Financial and Operational Highlights section.(8)Safety indicators include only the vessels that are under the Companys technical management.ment XXXI I ALGOMA CENTRAL CORPORATION 2024 ANNUAL REPORTG

161、eneralThis Managements Discussion and Analysis(“MD&A”)of the Company should be read in conjunction with its Consolidated Financial Statements for the years ended December31,2024 and 2023 and related notes thereto and has been prepared as at February27,2025.This MD&A has been prepared by reference to

162、 the disclosure requirements established under National Instrument 51-102“Continuous Disclosure Obligations”of the Canadian Securities Administrators.Additional information on the Company,including its 2024 Annual Information Form,is available on SEDARs website at www.sedarplus.ca and on the Company

163、s website at .Business ProfileAlgoma Central Corporation owns and operates the largest fleet of dry and liquid bulk carriers operating on the Great Lakes-St.Lawrence Seaway,including self-unloading dry-bulk carriers,gearless dry-bulk carriers and product tankers.Algoma also owns and operates ocean-g

164、oing self-unloading dry-bulk vessels trading in international markets and holds a 50%interest in global joint ventures that own diversified portfolios of dry and liquid bulk fleets operating internationally.In addition to its owned vessels,the Company provides operational management for other vessel

165、s.The Company reports the results of its operations for five business units or segments.The largest is the Domestic Dry-Bulk segment,which includes the Companys 18 Canadian dry-bulk carriers.This segment serves a wide variety of major industrial sectors,including iron and steel producers,aggregate p

166、roducers,cement and building material producers,salt producers,and agricultural product distributors.The Product Tankers fleet consists of eight product tankers employed in Canadian flag service,with two more currently under contruction.The segment also includes the Companys 50%interest in an intern

167、ational joint venture comprising ten tankers,six of which are under construction,and an interest in a foreign-flagged tanker operation comprising two product tankers.Customers include major oil refiners,leading wholesale distributors,and large consumers of petroleum products.The Companys internation

168、al Ocean Self-Unloaders segment consists of eight ocean-going self-unloading vessels and a 25%interest in a ninth self-unloader.The eight wholly owned self-unloaders are part of a Pool comprising the worlds largest fleet of ocean-going self-unloaders,which at the end of the period totalled 18 vessel

169、s.Three ocean self-unloaders are currently under construction,with delieveries between 2025 and 2027,and are set to replace the oldest Algoma owned vessels in the pool.The Global Short Sea Shipping segment,which consists of the Companys NovaAlgoma joint ventures,focuses on niche marine transportatio

170、n markets featuring specialized equipment or services.The cement carrier fleet operates pneumatic cement carriers servicing large global cement manufacturers that support construction and infrastructure projects.The short sea mini-bulker fleet comprises owned ships,chartered vessels,and vessels oper

171、ated under third-party management contracts.The fleet supports the agricultural,cement,construction,energy,and steel industries worldwide.The handy-size fleet is an opportunistic vessel sales and purchase venture.Two newbuild mini-bulkers and one pneumatic cement carrier are currently under contruct

172、ion and are expected to be delivered between 2025 and 2027.The Corporate segment consists of the Companys head office expenditures,third-party management services,other administrative functions of the Company,and earnings from a joint venture in a mechanical,machining,and fabrication shop.Effective

173、from January 1,2024,the Company has aggregated the remaining balances of the Investment Properties segment with the Corporate segment as Investment Properties no longer meets the definition of a reportable segment.The comparative information for the Investment Properties segment has been reclassifie

174、d to conform to the current financial statement presentation.Impact of Seasonality on the CompanyThe nature of the Companys business is such that the earnings in the first quarter of each year are not indicative of the results for the other three quarters in the year.Due to the closing of the canal

175、system and the winter weather conditions on the Great Lakes-St.Lawrence Seaway,the majority of the Domestic Dry-Bulk fleet does not operate for most of the first quarter.In addition,significant repair and maintenance costs are incurred in the first quarter to prepare the Domestic Dry-Bulk fleet for

176、the upcoming navigation season.As a result,first quarter revenues and earnings are significantly lower than those of the remaining quarters in the year.Important Information About This MD&AThe reporting currency used is the Canadian dollar and all amounts are reported in thousands of Canadian dollar

177、s,except for per share data,and unless otherwise noted.Forward-Looking StatementsAlgoma Central Corporations public communications often include written or oral forward-looking statements.Statements of this type are included in this document and may be included in other filings with Canadian securit

178、ies regulators or in other communications.All such statements are made pursuant to the safe harbour provisions of any applicable Canadian securities legislation.Forward-looking statements may involve,but are not limited to,comments with respect to our objectives and priorities for 2025 and beyond,ou

179、r strategies or future actions,our targets,expectations for our financial condition or share price and the results of or outlook for our operations or for the Canadian,U.S.and global economies.The words may,will,would,should,could,expects,plans,intends,trends,indications,anticipates,believes,estimat

180、es,predicts,likely or potential or the negative or other variations of these words or other comparable words or phrases,are intended to identify forward-looking statements.By their nature,forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties.Th

181、ere is significant risk that predictions,forecasts,conclusions or projections will not prove to be accurate,that our assumptions may not be correct and that actual results may differ materially from such predictions,forecasts,conclusions or projections.We caution readers of this document not to plac

182、e undue reliance on our forward-looking statements as a number of factors could cause actual future results,conditions,actions or events to differ materially from the targets,expectations,estimates or intentions expressed in the forward-looking statements.The future outcomes that relate to forward-l

183、ooking statements may be influenced by many factors,including but not limited to:labour disputes that could affect the operations infrastructure upon which the Company relies;1 I ALGOMA CENTRAL CORPORATION 2024 MANAGEMENTS DISCUSSION&ANALYSIS the impact of climate change on markets served by our cus

184、tomers,including the impact of drought conditions on agricultural outputs and the impact of winter conditions on production and/or sale of certain commodities;general economic and market conditions in the countries in which we operate;our success in maintaining and securing our information technolog

185、y systems,including communications and data processing from accidental and malicious threats;our success in securing contract renewals and maintaining existing freight rates with existing customers;our success in securing contracts with new customers at acceptable freight rates;evolving regulations

186、focused on carbon emissions and ballast water treatment that could require capital investments and increase costs that may not be recoverable from revenues;our ability to attract and retain qualified employees;interest rate and currency value fluctuations;our ability to execute our strategic plans a

187、nd to complete and integrate acquisitions;critical accounting estimates;operational and infrastructure risks,including on-going maintenance and operational reliability of the St.Lawrence Seaway;on-time and on-budget delivery of new ships from shipbuilders;general political conditions;labour relation

188、s with our unionized workforce;the possible effects on our business of war or terrorist activities;disruptions to public infrastructure,such as transportation,communications,power or water supply,including water levels;technological changes;significant competition in the shipping industry and from o

189、ther transportation providers;reliance on partnering relationships;appropriate maintenance and repair of our existing fleet by third-party contractors;health and safety regulations that affect our operations can change and be onerous and the risk of safety incidents can affect results;a change in ap

190、plicable laws and regulations,including environmental regulations,could materially affect our results;economic conditions may prevent us from realizing sufficient investment returns to fund our defined benefit plans at the required levels;our ability to raise new equity and debt financing,if require

191、d;general weather conditions or natural disasters;the seasonal nature of our business;and,risks associated with the lease and ownership of real estate.This should not be considered a complete list of all risks to which the Company may be subject from time to time.When relying on forward-looking stat

192、ements to make decisions with respect to the Company,investors and others should carefully consider these factors,as well as other uncertainties and potential events and the inherent uncertainty of forward-looking statements.The Company does not undertake to update any forward-looking statements,whe

193、ther written or oral,that may be made,from time to time,by the organization or on its behalf,except as required by law.The forward-looking information contained in this document is presented for the purpose of assisting our shareholders in understanding our financial position as at the dates present

194、ed,our strategic priorities,and our objectives,and may not be appropriate for other purposes.For more information,please see the discussion of risks and uncertainties in the Companys Annual Information Form for the year ended December31,2024,which outlines in detail,certain key factors that may affe

195、ct the Companys future results.The Annual Information Form can be found on the Companys website at and on SEDARs website at www.sedarplus.ca.Ocean Self-Unloaders Algoma participates in the worlds largest Pool of ocean-going self-unloaders(the Pool).The segments commercial results reflect a pro-rata

196、share of Pool revenue and voyage costs(in operating expenses)for the Companys eight 100%owned ships.Earnings from the partially owned ship operating in this sector are included in the Companys joint venture,Marbulk.Algoma does not incur selling expenses on ocean self-unloader business,but instead pa

197、ys a commercial fee to the Pool manager,which is reflected as an operating expense.Joint Ventures Joint venture revenues from the Product Tankers,Ocean Self-Unloaders,Global Short Sea Shipping,and Corporate segments are not included in the consolidated revenue figure.The Companys share of net earnin

198、gs,adjusted for amortization arising from vessel purchase price allocation and intangibles,is included in net earnings from joint ventures in the Companys consolidated earnings.Non-GAAP MeasuresThis MD&A uses several financial measures to assess its performance including earnings before interest,inc

199、ome taxes,depreciation,and amortization(EBITDA),free cash flow,return on equity,adjusted profit margin,and adjusted performance measures.Some of these measures are not calculated in accordance with Generally Accepted Accounting Principles(GAAP),which are based on IFRS Accounting Standards as issued

200、by the International Accounting Standards Board(IASB),are not defined by GAAP,and do not have standardized meanings that would ensure consistency and comparability among companies using these measures.From Managements perspective,these non-GAAP measures are useful measures of performance as they pro

201、vide readers with a better understanding of how Management assesses performance.The non-GAAP measures that are used throughout this report are defined below and can also be referred to in the sections entitled EBITDA,Free Cash Flow,Return on Equity,Adjusted Performance Measures,Profit Margin,Adjuste

202、d Profit Margin,and Select Financial and Operational Performance.EBITDA EBITDA is not intended to represent cash flow from operations,and it should not be considered as an alternative to net earnings,cash flow from operations,or any other measure of performance prescribed by IFRS Accounting Standard

203、s.Management considers EBITDA to be a meaningful measure to assess its operating performance in addition to other IFRS measures.It is included because Management believes it can be useful in measuring its ability to service debt,fund capital expenditures,expand its business,and is a similar metric u

204、sed by credit providers in the financial covenants of the Companys senior secured long-term debt.ALGOMA CENTRAL CORPORATION 2024 MANAGEMENTS DISCUSSION&ANALYSIS I 2Free Cash Flow Management believes that free cash flow is a useful measure of liquidity as it demonstrates the Companys ability to gener

205、ate cash for debt obligations and for discretionary uses such as payments of dividends,investing activities,and additions of property,plant,and equipment.The Company defines its free cash flow as cash from operating activities less debt service and capital required for maintenance of existing assets

206、.Return on EquityReturn on equity is a profitability measure that presents the net earnings as a percent of average shareholders equity.Profit Margin Profit margin is a financial metric that measures the ability to generate earnings relative to revenue and is a measure of net earnings as a percentag

207、e of net revenue.Adjusted Performance Measures Management assesses results on a reported and adjusted basis and considers both as useful measures of performance.Adjusted results remove items of note from reported results and are used to calculate the adjusted measures.Items of note include certain i

208、tems of significance that arise from time-to-time which Management believes are not reflective of underlying business performance.Management believes that adjusted measures provide the reader with a better understanding of how we assess underlying business performance and facilitate a more informed

209、analysis of trends.Adjusted Return on Equity is calculated by dividing adjusted net earnings by unadjusted shareholders equity.Adjusted profit margin is a measure of adjusted net earnings as a percentage of net revenue.Select Financial and Operational Performance Statistical operating data are unaud

210、ited and based on data available at such time and are subject to change as more complete information becomes available.Definitions of each measure are included within the Companys Managements Discussion&Analysis.Select Financial and Operational HighlightsFinancial HighlightsFavourable/(Unfavourable)

211、For the years ended December 312024202320222024 vs 20232023 vs 2022Reported revenue$703,444$721,220$677,942$(17,776)$43,278 Freight revenue(1)848,965 860,730 814,864(11,765)45,866 Operating earnings 75,145 74,532 102,297 613(27,765)Net earnings91,638 82,870 119,966 8,768(37,096)Basic earnings per sh

212、are2.29 2.15 3.17 0.14(1.02)Diluted earnings per share2.29 2.00 2.89 0.29(0.89)EBITDA(2)200,494 186,112 204,961 14,382(18,849)Free Cash Flow(3)77,097 66,067 99,192 11,030(33,125)Dividends declared per share(4)0.76 0.72 2.03 0.04(1.31)Return on Equity(ROE)(5)10.92%11.02%17.56%(0.1pp)(6.6pp)December 3

213、1December 31As at 202420232024 vs 2023Common shares outstanding40,567,816 38,649,996 1,917,820 Total assets$1,523,953$1,344,156$179,797 Total long-term financial liabilities$334,084$377,021$(42,937)(1)Freight revenue from each segment includes our proportionate share of freight revenue from our resp

214、ective joint ventures and excludes revenue from non-marine activities of the Company.(2)See the section entitled Important Information About This MD&A-EBITDA for an explanation of this non-GAAP measure.(3)See the section entitled Important Information About This MD&A-Free Cash Flow for an explanatio

215、n of this non-GAAP measure.(4)A special dividend of$1.35 was declared in 2022.Not including the special dividend,dividends of$0.68 were declared in 2022.(5)See the section entitled Important Information About This MD&A-Return on Equity for an explanation of this non-GAAP measure.3 I ALGOMA CENTRAL C

216、ORPORATION 2024 MANAGEMENTS DISCUSSION&ANALYSIS Operational Highlights The following table lists key measures of the Companys operating performance for the purpose of measuring the efficiency and effectiveness of our operations.The operational highlights below relate only to our Domestic Dry-Bulk,Pr

217、oduct Tankers,and Ocean Self-Unloaders segments,and do not include the fleets in which we participate through joint ventures.For the years ended December 31202420232022Number of shipboard employees1,519 1,551 1,492 Total distance travelled by vessels(nautical miles)1,308,307 1,325,305 1,237,899 Tota

218、l cargo carried(metric tonnes in thousands)(1)41,699 44,872 43,565 Tonne-kilometres travelled(in millions)(2)40,654 41,803 45,699 Deadweight tonnage(metric tonnes in thousands)(3)1,306 1,297 1,290 Number of vessels in total shipping fleet35 34 34 Number of vessel port calls2,844 3,021 2,836 Operatin

219、g days(4)10,472 10,760 10,177 Vessel productivity(5)Domestic Dry-Bulk 95%96%95%Product Tankers 97%95%96%Ocean Self-Unloaders 99%98%99%Vessel capacity utilization(6)Domestic Dry-Bulk 90%98%88%Product Tankers 100%100%92%Ocean Self-Unloaders 100%100%100%(1)Total quantity of cargo in metric tonnes trans

220、ported during the reporting period.(2)Total cargo tonne-kilometres travelled in the reporting period.Calculated as cargo quantity multiplied by the distance in kilometres that the cargo quantity was transported.(3)Deadweight tonnage is the sum,for the Companys vessels as noted above,of the differenc

221、e in displacement in deadweight tonnes between the light displacement and the actual loaded displacement.(4)Operating days are calculated as the number of available days in the reporting period minus the aggregate number of days that the vessels are off-hire due to unforeseen circumstances.(5)Total

222、number of days that vessels earned revenue expressed as a percentage of available operating days.(6)Total number of operating days expressed as a percentage of the total number of days the vessels were available for use.EBITDAThe Company uses EBITDA as a measure of the cash-generating capacity of it

223、s businesses.The following table provides a reconciliation of net earnings in accordance with GAAP to the non-GAAP EBITDA measure for the years ended December31,2024,2023,and 2022 and presented herein:For the years ended December 31202420232022Net earnings$91,638$82,870$119,966 Adjustments to net ea

224、rnings,excluding joint ventures:Depreciation and amortization 73,780 66,680 66,038 Impairment reversal(14,891)(14,759)Interest expense,net17,507 16,249 18,714 Gain on sale of assets(1,404)(9,286)(13,913)Foreign exchange loss(gain)2,278(3,044)(3,892)Investment gain on distribution (669)Income tax exp

225、ense 2,886 11,360 16,917 Joint venture adjustments:Interest expense,net5,306 4,134 3,350 Foreign exchange loss(gain)447(43)566 Depreciation and amortization20,455 17,152 19,385 Income tax expense2,823 599 1,072 Gain on sale of assets(331)(559)(7,814)EBITDA(1)$200,494$186,112$204,961(1)Please refer t

226、o the section entitled Important Information About This MD&A for an explanation of this non-GAAP measure.ALGOMA CENTRAL CORPORATION 2024 MANAGEMENTS DISCUSSION&ANALYSIS I 4RevenuesFavourable/(Unfavourable)For the years ended December 312024202320222024 vs 20232023 vs 2022Reported Revenue$703,444$721

227、,220$677,942$(17,776)$43,278 Freight revenue(1)Domestic Dry-Bulk$374,100$407,083$359,141$(32,983)$47,942 Product Tankers160,284 132,166 118,686 28,118 13,480 Ocean Self-Unloaders180,385 182,468 197,951(2,083)(15,483)Global Short Sea Shipping134,196 139,013 139,086(4,817)(73)Total freight revenue$848

228、,965$860,730$814,864$(11,765)$45,866(1)Freight revenue from each segment includes our proportionate share of freight revenue from our respective joint ventures and excludes revenue from non-marine activities of the Company.Stock Market HighlightsCommon Shares The common shares of the Company are lis

229、ted on The Toronto Stock Exchange under the symbol of ALC.The price ranges and volume of common shares of the Company traded on the TSX on a monthly basis for 2024 were as follows:MonthHighLowNumber of TradesVolume Traded(000s)Value Traded(000s)January$15.37$14.72 1,402 339$5,065 February$15.58$14.8

230、5 941 203$3,072 March$15.04$14.26 774 279$4,124 April$15.08$14.45 657 199$2,940 May$14.83$14.10 1,045 312$4,501 June$14.37$14.08 917 329$4,662 July$15.20$14.07 888 185$2,655 August$15.03$14.10 937 208$3,021 September$14.95$14.03 629 122$1,756 October$15.60$14.74 953 219$3,322 November$15.50$14.80 86

231、3 203$3,059 December$15.14$14.25 861 199$2,943 5 I ALGOMA CENTRAL CORPORATION 2024 MANAGEMENTS DISCUSSION&ANALYSIS Adjusted Performance Measures Management assesses results on a reported and adjusted basis and considers both as useful measures of performance.Adjusted results remove items of note fro

232、m reported results and are used to calculate the adjusted measures noted below.Items of note include certain items of significance that arise from time to time which Management believes are not reflective of underlying business performance.We believe that adjusted measures provide the reader with a

233、better understanding of how Management assesses underlying business performance and facilitates a more informed analysis of trends.Adjusted net earnings below is net of income tax.These measures do not have any standardized meaning prescribed by GAAP and therefore may not be comparable to similar me

234、asures presented by other companies.The following table provides a reconciliation of net earnings,return on equity,and basic and diluted earnings per share in accordance with GAAP as reported for the years ended December31,2024,2023,and 2022,to the adjusted non-GAAP performance measures presented he

235、rein:For the years ended December 31202420232022Net earnings$91,638$82,870$119,966 Adjustments:Impairment reversal,net(13,015)(10,848)Gains on sale of properties (10,187)Adjusted net earnings$78,623$82,870$98,931 Return on equity 10.92%11.02%17.56%Adjusted return on equity(1)9.37%11.02%14.48%Basic e

236、arnings per share$2.29$2.15$3.17 Impact of adjustments per share(0.32)(0.56)Adjusted basic earnings per share$1.97$2.15$2.61 Diluted earnings per share$2.29$2.00$2.89 Impact of adjustments per share(0.32)(0.49)Adjusted diluted earnings per share$1.97$2.00$2.40(1)Adjusted return on equity is calculat

237、ed by dividing adjusted net earnings by unadjusted average shareholders equity.The$13,015 adjustment during the year ended December31,2024 relates to an impairment reversal,net of related amortization,within the Companys investment in the Global Short Sea Shipping segment.The$10,848 adjustment durin

238、g the year ended December 31,2022 relates to an impairment reversal within the Companys investment in the Domestic Dry-Bulk segment.The$10,187 adjustment during the year ended December 31,2022 relates to the sale of Station Mall in Sault Ste.Marie.The following table provides a reconciliation of ope

239、rating earnings in accordance with GAAP as reported for the years ended December31,2024,2023,and 2022,to the adjusted non-GAAP performance measures presented herein:For the years ended December 31202420232022Revenue$703,444$721,220$677,942 Operating earnings$75,145$74,532$102,297 Adjustments:Impairm

240、ent reversal (14,759)Adjusted operating earnings$75,145$74,532$87,538 Profit margin 10.68%10.33%15.09%Impact of adjustments on profit margin%(2.18)%Adjusted profit margin(2)10.68%10.33%12.91%(2)Adjusted profit margin is a measure of adjusted operating profit as a percentage of revenues.ALGOMA CENTRA

241、L CORPORATION 2024 MANAGEMENTS DISCUSSION&ANALYSIS I 6Domestic Dry-Bulk Segment Financial Performance Favourable/(Unfavourable)For the years ended December 312024202320222024 vs 20232023 vs 2022Revenue$375,159$408,170$360,139$(33,011)$48,031 Operating expenses(290,696)(308,132)(271,233)17,436(36,899

242、)Selling,general and administrative(14,320)(14,997)(11,919)677(3,078)Other operating item 14,395 (14,395)Depreciation and amortization(27,465)(25,662)(26,009)(1,803)347 Operating earnings 42,678 59,379 65,373(16,701)(5,994)Gain on sale of vessel438 438 Income tax expense(11,420)(15,760)(17,396)4,340

243、 1,636 Net earnings$31,696$43,619$47,977$(11,923)$(4,358)Operational Performance Favourable/(Unfavourable)For the years ended December 312024202320222024 vs 20232023 vs 2022Volumes(metric tonnes in thousands)Power Generation20 75 99(55)(24)Iron and steel 8,243 7,975 7,684 268 291 Construction 2,780

244、3,867 3,379(1,087)488 Agriculture 4,023 4,032 3,256(9)776 Salt 3,179 4,749 4,970(1,570)(221)Total volumes 18,245 20,698 19,388(2,453)1,310 Revenue Days4,852 5,480 4,814(628)666 Operating Days 5,115 5,688 5,058(573)630 EBITDAThe following table provides a reconciliation of net earnings in accordance

245、with GAAP to the non-GAAP EBITDA measure,as reported for the years ended December31,2024,2023,and 2022,and presented herein:For the years ended December 31202420232022Net earnings$31,696$43,619$47,977 Adjustments to net earnings:Depreciation and amortization 27,465 25,662 26,009 Income tax expense 1

246、1,420 15,760 17,396 Impairment reversal (14,759)Gain on sale of vessel(438)EBITDA(1)$70,143$85,041$76,623(1)Please refer to the section entitled Important Information About This MD&A for an explanation of this non-GAAP measure.2024 Compared to 2023The decrease in revenue was mainly driven by a 12%re

247、duction in overall volumes,leading to a 12%decline in revenue days.The decrease was partially offset by improved freight rates as a result of inflation-related pricing adjustments.Cargo volumes declined primarily due to reduced demand for de-icing salt and construction materials.As a result,three sh

248、ips remained in layup during the first half of the year.Salt volumes dropped significantly after several mild winters,including an exceptionally warm 2023,leading to full depots of road salt and production cuts by a key customer throughout 2024.A downturn in the construction market led to reduced ag

249、gregate shipments.With new spot business in iron ore and strong seasonal demand for grain shipments,all fleet vessels were eventually activated to return to service during the third quarter.Operating days were 10%lower year-over-year due to the reduced demand,driving lower costs.Operating days were

250、also impacted by increased vessel out-of-service time on three vessels,as a result of incidents experienced during the year.Lower operating costs were partially offset by higher layup costs,particularly as a result of hull repairs coupled with the higher price of replacement steel and the dry-dockin

251、g of the Algoma Compass.Supplies,repair,and crew costs were also higher reflecting inflationary increases to food,equipment,shore services,and wages.7 I ALGOMA CENTRAL CORPORATION 2024 MANAGEMENTS DISCUSSION&ANALYSIS In the second quarter of 2024,the Algoma Bear joined the fleet,replacing the Algoma

252、 Transport which was retired and sold for recycling in January,2024.The Algoma Bear,a self-unloader,is the eleventh Equinox Class vessel to be delivered.In the fourth quarter of 2024,a new refund guarantee was put in place for the Algoma Endeavour,another new self-unloader,and the twelfth Equinox Cl

253、ass vessel,currently under construction in Croatia.OutlookIn 2025,fleet utilization is expected to be much higher with the addition of significant new domestic steel industry business and more typical winter conditions driving an anticipated recovery in salt volumes.Shipments in the agriculture sect

254、or are expected to be strong,while the construction market is likely to remain flat.The new Algoma Endeavour is expected to begin service in early April,serving a variety of market sectors and driving improvements in fleet efficiency and environmental sustainability.Product Tankers Segment Financial

255、 Performance Favourable/(Unfavourable)For the years ended December 312024202320222024 vs 20232023 vs 2022Revenue$148,347$132,166$118,686$16,181$13,480 Operating expenses(116,993)(104,038)(86,825)(12,955)(17,213)Selling,general and administrative(5,986)(5,306)(4,739)(680)(567)Depreciation and amortiz

256、ation (15,962)(14,593)(14,013)(1,369)(580)Operating earnings 9,406 8,229 13,109 1,177 (4,880)Gain on sale of vessels 966 9,092 (8,126)9,092 Income tax expense(1,900)(3,377)(2,696)1,477 (681)Net earnings from investment in joint venture 3,186 1,238 1,948 1,238 Net earnings$11,658$15,182$10,413$(3,524

257、)$4,769 Operational Performance(1)Favourable/(Unfavourable)For the years ended December 312024202320222024 vs 20232023 vs 2022Volume(metric tonnes in thousands)Petroleum products 3,492 2,729 2,399 763 330 Total volume 3,492 2,729 2,399 763 330 Revenue days 2,545 2,366 2,175 179 191 Operating days 2,

258、629 2,502 2,274 127 228 Outside charter days 6 (6)(1)The vessels which operate under international joint ventures and bareboat arrangements are excluded from operational performance.EBITDAThe following table provides a reconciliation of net earnings in accordance with GAAP to the non-GAAP EBITDA mea

259、sure,as reported for the years ended December31,2024,2023,and 2022,and presented herein:For the years ended December 31202420232022Net earnings$11,658$15,182$10,413 Adjustments to net earnings:Depreciation and amortization 15,962 14,593 14,013 Income tax expense 1,900 3,377 2,696 Gain on sale of ves

260、sels(966)(9,092)Joint venture:Interest,net 1,851 Depreciation and amortization 1,453 Foreign exchange gain(78)Income tax expense 4$EBITDA(1)$31,784$24,060$27,122(1)Please refer to the section entitled Important Information About This MD&A for an explanation of this non-GAAP measure.2024 Compared to

261、2023The revenue increase was driven by improved rates and 8%higher revenue days,supported by a larger domestic fleet size this year with the addition of ALGOMA CENTRAL CORPORATION 2024 MANAGEMENTS DISCUSSION&ANALYSIS I 8the Algosolis in August,2024,following an international bareboat charter.In Janu

262、ary,the Company acquired two 2009-built,16,600 dwt product tankers from Norways Knutsen OAS Shipping.With the completion of their bareboat charters and dry-dockings,the first vessel,renamed Algosolis,joined the Companys Canadian fleet in early August,2024.In late August,the second vessel renamed Fur

263、e Spear,began trading in Northern Europe in FureBears joint venture,joining the Fure Skagen in that fleet.Operating costs were higher this quarter due to a 5%increase in operating days,driven by the larger fleet and higher layup spending.In 2024,three vessels underwent dry-docking,compared to two in

264、 2023.Supply costs,including those related to dry-dockings,have risen due to inflation.Additionally,crew expenses increased due to higher onboarding and training costs for new vessels.Inflation-related wage adjustments further contributed to the rise in operating costs during the year.Joint venture

265、earnings increased due to the addition of four vessels during the year,the Fure Vanguard,Fure Viken,Fure Viskr,and Fure Vyl,operating under FureBear.The Fure Vanguard joined the fleet in the first quarter of 2024,followed by the Fure Viken in the third quarter,then the Fure Viskr and Fure Vyl in the

266、 fourth quarter.These vessels are the first four of ten newbuild product tankers set to enter operations.Additionally,joint venture earnings benefited from having the Fure Spear and Fure Skagen operating in an international pool.The$966 gain on sale of vessels relates to the sale of the Liv Knutsen,

267、during the 2024 third quarter,to FureBears joint venture where it has been renamed the Fure Spear.During 2023,the Algoma Hansa,the Algonorth,and the Algosea were sold,resulting in a$9,092 gain.The sale of the Algonorth,now named the Fure Skagen,was to FureBears joint venture.OutlookWe expect custome

268、r demand in the segment to remain steady in 2025 and for fuel distribution patterns within Canada to support strong vessel utilization for the vessels trading under Canadian flag.The fleet is expected to be in full deployment with all eight Canadian vessels in operation.With the delivery of the firs

269、t four FureBear newbuilds in 2024,six new tankers remain on order for the joint venture,with delivery expected between early 2025 and 2026.The Company is anticipating a continued steady rate environment for these tankers.Two additional product tankers will also enter service in early 2025 for our do

270、mestic fleet,with the first expected in April followed by the second in May.These vessels will be entered on long-term charters to Irving Oil under Canadian flag,servicing the companys refinery in Saint John,New Brunswick.Ocean Self-Unloaders SegmentFinancial PerformanceFavourable/(Unfavourable)For

271、the years ended December 312024202320222024 vs 20232023 vs 2022Average foreign exchange rate(USD/CAD)1.3700 1.3495 1.3017 0.0205 0.0478 Revenue$177,185$178,031$193,730$(846)$(15,699)Operating expenses(109,506)(125,840)(128,044)16,334 2,204 Selling,general and administrative(1,873)(2,207)(1,394)334(8

272、13)Depreciation and amortization(26,315)(24,261)(23,850)(2,054)(411)Operating earnings39,491 25,723 40,442 13,768(14,719)Net earnings from investment in joint venture288 1,241 3,783(953)(2,542)Net earnings$39,779$26,964$44,225$12,815$(17,261)Operational Performance Favourable/(Unfavourable)For the y

273、ears ended December 312024202320222024 vs 20232023 vs 2022Pool Volumes(metric tonnes in thousands)(1)Gypsum3,743 3,903 3,801(160)102 Aggregates8,252 9,152 9,174(900)(22)Coal7,338 7,633 7,739(295)(106)Other629 757 1,064(128)(307)Total volumes 19,962 21,445 21,778(1,483)(333)Algoma Vessels Revenue day

274、s2,707 2,509 2,806 198(297)Operating days 2,728 2,570 2,845 158(275)Off-hire days for dry-docking 142 392 74 250(318)(1)Pool volumes exclude volumes carried on vessels that were under time charter arrangements and under joint venture in the year.9 I ALGOMA CENTRAL CORPORATION 2024 MANAGEMENTS DISCUS

275、SION&ANALYSIS EBITDAThe following table provides a reconciliation of net earnings in accordance with GAAP to the non-GAAP EBITDA measure,as reported for the years ended December31,2024,2023,and 2022,and presented herein:For the years ended December 31202420232022Net earnings$39,779$26,964$44,225 Adj

276、ustments to net earnings:Depreciation and amortization 26,315 24,261 23,850 Joint venture:Depreciation and amortization 280 169 589 Interest income(48)(14)Investment gain on distribution (669)Foreign exchange loss(gain)(1)2 1 EBITDA(1)$66,325$51,382$67,996(1)Please refer to the section entitled Impo

277、rtant Information About This MD&A for an explanation of this non-GAAP measure.2024 Compared to 2023The Ocean Self-Unloaders segment experienced strong earnings this year,driven by full fleet utilization as a result of significantly fewer dry-dockings as only two vessels underwent dry-dock in 2024 co

278、mpared to four in 2023.Reduced operating costs in 2024 were mainly attributable to lower dry-dock spending resulting from the reduced number of vessels undergoing a dry-dock this year and reduced fuel expenditures.The decrease was partially offset by a 6%increase in operating days driven by the high

279、er on-hire days.In December 2024,the keel for the first of three ocean self-unloaders currently on order was laid at the Jiangsu Yangzi-Mitsui Shipbuilding Co.,Ltd in China.These new ships will replace the Pools oldest vessels and become the model for its next generation of ocean self-unloaders.Outl

280、ookFive vessels in the Algoma fleet are scheduled for dry-docking throughout 2025,which is expected to have a significant impact on available days.Demand for aggregate,gypsum,and salt is expected to increase,while coal shipments are projected to decline.Steel cutting for the hull of the second of th

281、ree newbuild ocean self-unloaders took place in January,2025.The first vessel in this series is expected to be delivered in the third quarter of 2025.Global Short Sea Shipping SegmentFinancial PerformanceFavourable/(Unfavourable)For the years ended December 312024202320222024 vs 20232023 vs 2022Aver

282、age foreign exchange rate(USD/CAD)1.3700 1.3495 1.3017 0.0205 0.0478 Revenue$268,391$278,026$278,172$(9,635)$(146)Operating expenses(172,707)(184,113)(172,258)11,406 (11,855)Selling,general and administrative(7,421)(7,134)(6,569)(287)(565)Depreciation and amortization (37,079)(33,825)(37,593)(3,254)

283、3,768 Operating earnings 51,184 52,954 61,752 (1,770)(8,798)Gain on sale of vessels 662 1,089 15,628 (427)(14,539)Interest expense (7,018)(8,304)(6,701)1,286 (1,603)Foreign exchange gain(loss)(1,105)89 (1,130)(1,194)1,219 Earnings before undernoted 43,723 45,828 69,549 (2,105)(23,721)Income tax expe

284、nse(4,758)(1,293)(2,144)(3,465)851 Net earnings of joint ventures 4,329 4,609 5,827 (280)(1,218)Net earnings attributable to non-controlling interest(2,587)(5,340)(8,591)2,753 3,251 Net earnings$40,707$43,804$64,641$(3,097)$(20,837)Company share of net earnings above$20,354$21,902$32,321$(1,548)$(10

285、,419)Impairment reversal of investment in joint venture 14,891 14,891 Amortization of vessel purchase price allocation and intangibles(2,423)(631)(609)(1,792)(22)Company share included in net earnings from investments in joint ventures$32,822$21,271$31,712$11,551$(10,441)ALGOMA CENTRAL CORPORATION 2

286、024 MANAGEMENTS DISCUSSION&ANALYSIS I 10EBITDAThe following table provides a reconciliation of net earnings in accordance with GAAP to the non-GAAP EBITDA measure,as reported for the years ended December31,2024,2023,and 2022,and presented herein:For the years ended December 31202420232022Company sha

287、re of net earnings from investments in joint ventures$20,354$21,902$32,321 Adjustments to net earnings(companys share):Depreciation and amortization 18,540 16,913 18,796 Interest expense 3,509 4,152 3,350 Income tax expense 2,379 647 1,072 Foreign exchange loss(gain)553 (45)565 Gain on sale of vesse

288、l(331)(545)(7,814)Company share of EBITDA(1)$45,004$43,024$48,290(1)Please refer to the section entitled Important Information About This MD&A for an explanation of this non-GAAP measure.2024 Compared to 2023Revenues in this segment,which consist of our NACC(cement),NASC(mini-bulker)and NABH(handy-s

289、ize)joint ventures,were down in 2024,primarily due to lower freight rates in the mini-bulker and handy-size fleets compared to the previous year as both are exposed to market conditions to varying degrees.The cement fleet,largely employed on longer term time charter contracts,saw its revenues increa

290、se versus the prior year due to improved contract terms across the fleet and the addition of one vessel over the course of the year.In the mini-bulker fleet,rates remained steady for the smaller 8K deadweight tonne(dwt)vessels;however,lower rates for the larger mini-grabber vessels drove the reduced

291、 revenue.The handy-size fleet was impacted by lower market rates and a vessel undergoing dry-docking at the start of the year.Operating expenses decreased mainly as a result of increased vessel off-hire due to dry-dockings on three vessels within the mini-bulker fleet,while costs in the handy-size f

292、leet remained flat year-over-year.The lower expenditures were partially offset by higher operating costs in the cement fleet which included an additional vessel.Depreciation was higher in 2024 mainly due to the increase in the size of the cement fleet and the delivery of a fourth newbuild asset in t

293、he mini-bulker fleet.In September 2024,a newbuild contract became effective for a 38,000 dwt methanol-ready pneumatic cement vessel.The vessel will be the worlds largest pneumatic cement carrier,the first cement carrier with a methanol-ready designation,and is scheduled to be delivered in the first

294、quarter of 2027.In accordance with our policies,the Company performs periodic reviews of its investments in joint ventures.During the review period,it was noted that positive earnings for NASC had been sustained over the five years since an impairment was recorded in 2019.The review indicated that t

295、he recoverable amount of the net investment subsequently increased and new-build vessels contracts were entered into in 2024 due to sustained economic performance of the venture over time.As a result of the review,the Company determined that the carrying value of its investment in NASC warranted an

296、impairment reversal and recognized a reversal of$14,891 in net earnings from investments in joint ventures.The impairment reversal was calculated as the amount by which the estimated net recoverable value exceeded the carrying value.OutlookIn 2025,we anticipate steady earnings from the cement fleet,

297、with most assets committed to long-term time charter contracts.The handy-size segment,together with the mini-bulk segment are expected to perform at levels similar to 2024.The two newbuild 8k dwt mini-bulkers are expected to be delivered in late 2025 and early 2026.These vessels will bring the newbu

298、ilds added to the mini-bulk fleet to six since 2020.11 I ALGOMA CENTRAL CORPORATION 2024 MANAGEMENTS DISCUSSION&ANALYSIS Corporate SegmentFinancial PerformanceFavourable/(Unfavourable)For the years ended December 312024202320222024 vs 20232023 vs 2022Revenue$2,753$2,853$5,387$(100)$(2,534)Operating

299、expenses(895)(1,079)(3,942)184 2,863 Selling,general and administrative (16,673)(19,040)(16,515)2,367 (2,525)Depreciation (1,615)(1,533)(1,557)(82)24 Operating loss(16,430)(18,799)(16,627)2,369 (2,172)Gain on sale of property 194 13,913 (194)(13,719)Foreign exchange gain(loss)(2,278)3,044 3,892 (5,3

300、22)(848)Interest expense,net(17,507)(16,249)(18,714)(1,258)2,465 Income tax recovery 10,434 7,777 3,175 2,657 4,602 Net earnings(loss)from investment in joint venture 1,464 (133)1,597 (133)Net loss$(24,317)$(24,166)$(14,361)$(151)$(9,805)The Corporate segment consists of revenue from management serv

301、ices provided to third parties,head office expenditures,other administrative expenses of the Company,and earnings from a joint venture in a mechanical,machining,and fabrication shop called Allied Marine&Industrial(AMI).The Company purchased a 49%interest in AMI in the third quarter of 2023 and also

302、purchased the land and buildings occupied by AMI.The land and buildings generate rental income for the Corporate segment.AMIs primary business supports the Canadian marine industry and is therefore impacted by that industrys seasonality,generating its earnings predominantly in the first half of the

303、year.Revenues in the segment are also generated from rental income provided by third-party tenants in the Companys head office building.Operating expenses include the operating costs of that office building.On June 30,2022,the Company finalized the sale of a shopping centre located in Sault Ste.Mari

304、e,Ontario.Proceeds of the sale included a vendor take-back mortgage for$18,000,secured by a first lien against the shopping centre.The principal repayment was due June 30,2024 and is now in default.The Company commenced legal action to collect the principal amount on the secured mortgage.A court ord

305、er imposed a deadline of January 16,2025 for the full mortgage amount,including accrued interest,to be paid.The repayment deadline was not met and the court has ordered commencement of receivership proceedings to recoup the mortgage.Consolidated Interest Expense Favourable/(Unfavourable)For the year

306、s ended December 312024202320222024 vs 20232023 vs 2022Interest expense on borrowings$21,374$18,297$18,127$(3,077)$(170)Amortization of financing costs 984 1,707 1,632 723 (75)Interest on employee future benefits,net 236 260 1,011 24 751 Capitalized interest(2,522)(1,160)(320)1,362 840$20,072$19,104

307、$20,450$(968)$1,346 ALGOMA CENTRAL CORPORATION 2024 MANAGEMENTS DISCUSSION&ANALYSIS I 12Income Taxes Favourable/(Unfavourable)For the years ended December 312024202320222024 vs 20232023 vs 2022Combined federal and provincial statutory income tax rate 26.5%26.5%26.5%Net earnings before income tax and

308、 net earnings from investments in joint ventures$56,764$70,613$101,388$(13,849)$(30,775)Expected income tax expense$(15,042)$(18,712)$(26,868)$3,670$8,156 Tax effects resulting from:Foreign tax rates different from Canadian statutory rate 11,417 7,104 10,957 4,313 (3,853)Effect of items that are non

309、-taxable 538 166 (132)372 298 Non-recoverable withholding taxes(367)(362)(387)(5)25 Deferred tax items recognized 263 856 (116)(593)972 Adjustments to prior period provision 490 (42)(697)532 655 Other(185)(370)326 185 (696)Actual tax expense$(2,886)$(11,360)$(16,917)$8,474$5,557 Effective tax rate e

310、xcluding net earnings from investments in joint ventures 5.1%16.1%16.7%(11.0)%(.6)%Earnings from the Companys foreign subsidiaries are taxed in jurisdictions which have nil income tax rates.Any variation in the effective income tax rate from the statutory income tax rate is due mainly to the lower i

311、ncome tax rates applicable to foreign subsidiaries,the effect of taxable and non-taxable items that may or may not be included in earnings and changes to income tax provisions related to prior periods.The Company is not subject to OECD Pillar Two taxes as its consolidated revenues fall below levels

312、at which such taxes apply.Summary of Quarterly Financial Results2024 Quarters2023 QuartersFourthThirdSecondFirstFourthThirdSecondFirstRevenues$208,618$204,644$180,968$109,214$201,322$205,888$202,406$111,604 Operating earnings(loss)44,602 43,172 15,924 (28,553)31,970 38,702 36,199 (32,339)Net earning

313、s(loss)51,513 39,914 17,464 (17,253)33,621 35,745 33,144 (19,640)Basic earnings(loss)per share 1.27 0.98 0.44 (0.44)0.87 0.93 0.86 (0.51)Diluted earnings(loss)per share 1.27 0.98 0.44 (0.44)0.80 0.85 0.79 (0.51)Dividends per share 0.19 0.19 0.19 0.19 0.18 0.18 0.18 0.18 Revenues generated by the Com

314、pany during the year are influenced by seasonal weather patterns,general economic conditions,cyclical demand for marine transportation and competition in the transportation sector.Operating expenses reflect the impact of customer demand,fuel prices,and repair and labour costs.Fluctuations in the Can

315、adian dollar relative to the U.S.dollar have also affected the conversion of the Companys U.S.dollar-denominated revenues and expenses and resulted in fluctuations in net earnings in the eight quarters presented above.Contingencies For information on contingencies,please refer to Note 29 of the Cons

316、olidated Financial Statements for the years ending December 31,2024 and 2023.There have been no significant changes in the items presented since December 31,2024.Capital Resources The Company has cash on hand of$3,545 at December31,2024.Available credit facilities along with projected cash from oper

317、ations for 2025 are expected to be sufficient to meet the Companys planned operating and capital requirements and other contractual obligations for the year.The Company maintains credit facilities that are reviewed periodically to determine if sufficient capital is available to meet current and anti

318、cipated needs.The Companys bank credit facility(the Facility)comprises a$125 million Canadian dollar and a$75 million U.S.dollar senior secured revolving bank credit maturing October 11,2027.The Facility bears interest at rates that are based on the Companys ratio of net senior debt,as defined,to ea

319、rnings before interest,taxes,depreciation and amortization and ranges from 170 to 325 basis points above adjusted SOFR,CORRA,or EURIBOR rates.The Company has granted a general security agreement in favour of the senior secured lenders and has granted specific collateral mortgages covering the majori

320、ty of its wholly owned vessels.As of December31,2024,$78,267 had been withdrawn from the Facility.The Company is subject to certain covenants under the terms of the Facility and the senior secured notes,including ones with respect to maintaining defined financial ratios and other conditions.As at De

321、cember31,2024,the Company was in compliance with all of its covenants.Transactions with Related Parties The Companys ultimate controlling party is The Honourable Henry N.R.Jackman,together with a trust created in 1969 by his father,Henry R.Jackman.There were no transactions with these related partie

322、s for the year ended December31,2024.13 I ALGOMA CENTRAL CORPORATION 2024 MANAGEMENTS DISCUSSION&ANALYSIS Financial Condition,Liquidity and Capital Resources Cash Flows Favourable/(Unfavourable)For the years ended December 312024202320222024 vs 20232023 vs 2022Net cash generated from operating activ

323、ities$155,389$124,207$133,130$31,182$(8,923)Net cash used in investing activities(183,752)(127,779)(65,872)(55,973)(61,907)Net cash used in financing activities(5,550)(105,757)(42,368)100,207 (63,389)Net change in cash(33,913)(109,329)24,890 75,416 (134,219)Effects of exchange rate changes on cash h

324、eld in foreign currencies 4,627 192 8,136 4,435 (7,944)Cash,beginning of year 32,831 141,968 108,942 (109,137)33,026 Cash,end of year$3,545$32,831$141,968$(29,286)$(109,137)Operating Activities Higher net cash from operating activities in 2024 primarily relates to timing of working capital cash flow

325、s.Investing Activities Higher net cash used in investing activities in 2024 reflects the significant investments in new tankers,vessels under construction,and investment in joint ventures.Financing Activities Changes in cash used in financing activities in 2024 reflects borrowing used for investment

326、 purposes,net redemption of convertible debentures.Free Cash FlowThe following table provides a reconciliation of net cash generated from operating activities in accordance with GAAP to the non-GAAP free cash flow,as reported for the years ended December31,2024,2023,and 2022,and presented herein:Fav

327、ourable/(Unfavourable)For the years ended December 312024202320222024 vs 20232023 vs 2022Net cash generated from operating activities$155,389$124,207$133,130$31,182$(8,923)Net debt service repayments (54,525)(23,087)(18,103)(31,438)(4,984)Capital required for maintenance of existing assets (23,767)(

328、35,053)(15,835)11,286 (19,218)Free cash flow(1)$77,097$66,067$99,192$11,030$(33,125)(1)Please refer to the section entitled Important Information About This MD&A-Free Cash Flow for an explanation of this non-GAAP measure.Free cash flow for 2024 reflects typical winter maintenance and dry-dock expend

329、itures.During 2023,the Company made significant environmental investments in fleet upgrades such as carbon reducing fuel efficiency technology,ballast water treatment system installations,and closed-loop exhaust gas scrubber upgrades.Normal Course Issuer Bid Effective March 21,2024,the Company renew

330、ed its normal course issuer bid(the 2024 NCIB)to purchase up to 1,975,857 of its common shares(Shares),representing approximately 5%of the 39,517,144 Shares issued and outstanding as of the close of business on March 7,2024.Under the 2024 NCIB,the Company may purchase up to 2,201 Shares per day,repr

331、esenting 25%of the average daily trading volume for the previous six months.The Company may buy back Shares anytime during the twelve-month period beginning on March 21,2024 and ending on March 20,2025.The stated capital of$1.41 per share equals the approximate paid-up capital amount of the Shares f

332、or purposes of the Income Tax Act.Under the 2024 NCIB,no Shares were purchased and cancelled for the period ended December31,2024.Under the previous NCIB,which began on March 21,2023 and concluded on March 20,2024,the Company purchased and cancelled 568,267 Shares,including 52,806 Shares purchased a

333、nd cancelled during the first three months of 2024.The Company intends to renew its normal course issuer bid upon receipt of the required approvals from regulatory authorities.ALGOMA CENTRAL CORPORATION 2024 MANAGEMENTS DISCUSSION&ANALYSIS I 14Commitments The table below provides aggregate information about the Companys contractual obligations as at December31,2024 that affect the Companys liquidi