VANCOUVER - BC Ferries says it has sailed much smoother waters when it comes to its earnings this year compared to 2011.

The corporation has released its first-quarter financial statements covering the period between March and June, showing net earnings of $3.3 million.

It lost $3.5 million over the same period last year.

BC Ferries also says revenues jumped just under $11 million to $197.6 million in the first quarter.

According to the corporation, $4.9-million of that boost came from increased fuel surcharges levied to offset skyrocketing gas prices.

About $3.6 million was spent to cover those higher fuel costs.

Release of the first quarter results comes as BC Ferries holds its annual general meeting in Vancouver.