Decline in oil transport brings down BNSF Q4

The Burlington Northern Santa Fe (BNSF) railway company has reported lower revenues for the fourth quarter of 2016, primarily because of lower oil transport needs. Fourth quarter and full year 2016 operating income were $1.8bn and $6.7bn, respectively, a decrease of $159m (8%) and $1bn (13%), respectively, compared to the same periods in 2015.

BNSF said in a statement: “Our lower earnings for the fourth quarter and full year 2016 were primarily a result of continued decline in demand, in particular in coal and crude oil businesses.

“This is a result of a flat unit volume for the fourth quarter and a decrease in full year 2016 unit volume of 5%, respectively, compared with the same periods in 2015, as well as business mix changes and the impact of lower fuel prices on our fuel surcharge revenues.

Industrial Products volumes decreased by 9% and 8% for the fourth quarter and full year 2016, respectively, compared with the same periods in 2015, primarily due to lower petroleum products, reflecting pipeline displacement of US crude rail traffic and lower US oil production. In addition, there was lower demand for steel and taconite. The full year volume decrease was partially offset by increased plastics products volume.”

For more information visit www.bnsf.com

7th March 2017