Update: Algoma Central at Record High as It Releases Preliminary Third-Quarter Results

05:02 PM EDT, 10/20/2026 (MT Newswires) -- (Add convertible debenture financing in paragraphs seven through 12 and closes shares.) Algoma Central (ALC.TO) trading at a record high on last look, on Tuesday said that preliminary third-quarter net earnings are expected to jump to CA$1.34 per share, from CA$0.97 per share, in the prior-year period. Net earnings include a one-time gain from the sale of two older vessels, a statement said. Revenue is expected to increase 26% over the same period to CA$288 million, the marine-shipping company said. The increase was due to higher freight rates, larger domestic dry-bulk fleet and higher grain and construction volumes. "Algoma is expecting strong third quarter results, reflecting continued strength in customer demand and freight rates in addition to the benefits of the strategic investments we made across our fleets," said Algoma Chief Executive Gregg Ruhl. "Our diversified business continues to achieve profitable growth despite the impact of global tariffs and geopolitical uncertainty due to the strength of our unique operating platform," Ruhl added. Algoma will report its third-quarter results on Nov. 6. Separately, the company said after the market close said it agreed to raise CA$50 million through a bought-deal offering of 6.20% convertible unsecured subordinated debentures. The company will issue the debentures at CA$1,000 each. Algoma also granted the underwriters a 30-day option to purchase up to an additional CA$7.5 million in debentures at the same price. Additionally, Algoma agreed to issue CA$12.5 million in debentures to E-L Financial through a concurrent non-brokered private placement on the same terms. The debentures will mature on Dec. 31, 2031, and carry an annual interest rate of 6.20%, payable semi-annually starting June 30, 2027. Holders may convert the debentures into common shares at CA$46.95 per share, subject to certain adjustments. Algoma expects to use the net proceeds to fund newbuild investments, mergers and acquisitions, and for general corporate purposes Shares of the company closed up CA$1.70 at CA$31.30 on Toronto Stock Exchange on Tuesday.