Canada National (CN) has reported its financial and operating results for the fourth quarter and the full year ended December 31, 2019.
Revenues for the full year 2019 increased by 4% to C$14.9bn, when compared to 2018. Revenues increased for petroleum and chemicals by 15% to C$1.6bn, coal marginally to C$0.7bn, grain and fertilizers by 1% to C$2.4bn, intermodal by 9% to C$3.8bn, and automotive by 3% to C$0.9bn. On the other hand, revenues decreased for metals and minerals by 3% to C$1.6bn, forest products by 4% to C$1.8bn, and other revenues by 7% to C$0.7bn.
The increase in revenues was mainly attributable to freight rate increases, the inclusion of TransX in the intermodal commodity group within the domestic market, the positive translation impact of a weaker Canadian dollar and higher volumes of petroleum crude, natural gas liquids and refined petroleum products in the first nine months. These factors were partly offset by lower volumes of a broad range of forest products, reduced US thermal coal exports via the Gulf Coast and lower shipments of frac sand.
Operating margin for the full year stood at 37.5%, a decrease of 0.9 points compared to 2018. Operating expenses increased by 6% to C$9.3bn, mainly due to increased purchased services and material expense due to the inclusion of TransX, higher depreciation expense and the negative translation impact of a weaker Canadian dollar; partly offset by lower fuel prices.
JJ Ruest, President and Chief Executive Officer of CN, commented: “Over the past two years, CN invested C$7.4bn in capital expenditures to increase capacity, efficiency and resiliency of the network. In 2020, our capital program will decrease to C$3.0bn, generating higher free cash flow. CN’s strong balance sheet provides us with the financial flexibility and resiliency required in the current turbulent economic environment.”
Source: CN
*C$ 1.5 = € / C$ 1.3 =$
