January 23, 2019 7:23 pm
Updated: January 23, 2019 7:25 pm

CP Rail’s 4th-quarter revenues surge amid high demand for oil, grain

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Canadian Pacific Railway Ltd. says freight sales drove a 17 per cent leap in revenues to $1.96 billion in the fourth quarter, fuelled by oil, grain and other commodities.

Net income for the country’s second-biggest rail company plunged 45 per cent to $545 million in the three months ended Dec. 31 compared to the same period in 2017.

Year-over-year diluted earnings per share dropped to $3.84 from $6.77, falling below analyst expectations of $4.22.

READ MORE: Canadian railways ration space as congestion problems worsen

Quarterly revenues for energy, chemicals and plastics jumped 49 per cent to $369 million amid surging demand from Asian markets. Grain revenues, which have broken company records recently, rose seven per cent to $453 million, while coal leaped 22 per cent to $187 million

Canadian Pacific Railway locomotives are shuffled around a marshalling yard in Calgary on May 16, 2012. Canadian Pacific Railway Ltd. says freight sales drove a 17 per cent leap in revenues to $1.96 billion last quarter, fuelled by oil, grain and other commodities. Net income for the country’s second-biggest rail company plunged 45 per cent to $545 million in the three months ended Dec. 31 compared to the same period in 2017.

THE CANADIAN PRESS/Jeff McIntosh

The Calgary-based company’s fuel costs for the quarter rose 25 per cent year-over-year to $247 million.

READ MORE: Record amount of Canadian oil exported by rail raises safety concerns

The operating ratio, a key industry metric, improved by 370 basis points to more than 56 per cent.

© 2019 The Canadian Press

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