BNSF reports higher revenue, lower income in 2022

BNSF Railway Co. yesterday reported operating income in fourth-quarter and full-year 2022 was $2.1 billion and $8.6 billion, respectively, a 15% and 2% decrease compared to the same periods in 2021.

The Class I logged operating ratios (OR) of 67.8% and 65.9% for Q4 and the full year, respectively, BNSF officials said in a financial performance summary. The railroad's OR previously stood at 60% in Q4 2021 and 60.9% in 2021.

Total revenue for the quarter climbed 5% to $6.6 billion, and full-year revenue rose 11% to nearly $26 billion compared with the same periods in 2021. The increases were primarily due to an increase in average revenue per car unit resulting from higher fuel surcharge revenue driven by higher fuel prices. Those increases were partially offset by lower volumes of 9% in Q4 and 6% for the full year.

Revenue changes also resulted from the following:

• Consumer products volumes fell 10% and 8% for Q4 and the full year, respectively, due to lower intermodal shipments resulting from supply chain challenges and lower West Coast imports in the second half of the year.
• Industrial products volumes fell 11% and 5% for Q4 and the full year, respectively. The full-year decrease was caused by a decrease in petroleum related to lower demand for crude-by-rail shipments, lower building products shipments and lower steel and taconite shipments. The Q4 decrease was primarily due to lower chemical, steel and taconite shipments.
• Agricultural products volumes were down 4% and 2% in Q4 and the full year, respectively. The decreases were caused primarily by lower grain exports and fertilizer shipments, partially offset by higher volumes of domestic grains, renewable diesel and feedstocks.
• Coal volumes fell 8% in Q4 primarily due to network service challenges. Coal volumes were flat for the full year.