CN reports C$13.8bn in revenues for the full year 2020

CN reports C$13.8bn in revenues for the full year 2020, showing a 7% decrease Y-o-Y, while operating income decreased by 15%, to C$4.8bn.

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Canadian National (CN) has reported its financial and operating results for its forth quarter and the full year ended December 31, 2020.

Overall revenue for the full year showed a decrease of 7% Y-o-Y, or C$*1.1bn, to C$13.8bn. Meanwhile revenues for Q4 2020 stood at C$3.7bn, showing an increase of 2% Y-o-Y. Operating income for Q4 increased by 16% to C$1.4bn, while operating income for the full year decreased by 15%, to C$4.8bn.

The increase in revenues for Q4 was mainly attributable to record shipments of Canadian grain, increased shipments of US grain, higher international container traffic via the Port of Vancouver and freight rate increases; partly offset by lower applicable fuel surcharge rates and lower volumes of petroleum crude. RTMs, measuring the weight and distance of freight transported by CN, increased by 10%. Freight revenue per RTM decreased by 6%, mainly driven by an increase in the average length of haul, changes in business mix and lower applicable fuel surcharge rates; partly offset by freight rate increases.

The decrease in revenues for the full year was mainly attributable to lower volumes across most commodity groups, primarily in the second and third quarter, caused by the ongoing effects of the COVID-19 pandemic and lower applicable fuel surcharge rates, partly offset by freight rate increases as well as record shipments of Canadian grain. RTMs declined by 5%. Freight revenue per RTM decreased by 2%, mainly driven by lower applicable fuel surcharge rates, partly offset by freight rate increases.

Sub-division revenues for the full year

  • Petroleum and chemicals: C$2.6bn, decrease of 14%,
  • Metals and minerals: C$1.4bn, decrease of 14%,
  • Forest products: C$1.7bn, decrease of 6%,
  • Coal: C$527m, decrease of 20%,
  • Grain and fertilisers: C$2.6bn, increase of 9%,
  • Intermodal: C$3.8bn, decrease of 1%,
  • Automotive: C$591m, decrease of 31%.

JJ Ruest, President and Chief Executive Officer, CN, said, “2020 was a year like no other and thanks to our colleagues, who are essential workers, we got through it together and kept the economy moving while setting impressive new volume records in key markets. Our operations remained very nimble in the fourth quarter as we right-sized to meet the increased demand while we maintained industry leading fuel efficiency. We continue to actively implement our long-term strategy, focusing on sustainable growth and deploying advanced technology to generate value for all of our stakeholders.”

Source: Canada National

*C$ = $0.78/€0.65

 

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