BNSF Posts 14% Revenue Boost in 2Q22

Written by Carolina Worrell, Senior Editor
Total revenues for BNSF's second quarter and first six months of 2022 increased 14% and 12% in each period compared with the same periods in 2021, reflecting lower volumes of 6% in the second quarter and 4% in the first six months.

Total revenues for BNSF's second quarter and first six months of 2022 increased 14% and 12% in each period compared with the same periods in 2021, reflecting lower volumes of 6% in the second quarter and 4% in the first six months.

For second-quarter 2022, BNSF revenue came in at $6.640 billion, up 14% from the prior year period, reflecting lower volumes of 6%, the Class I railroad reported.

Operating income for the second quarter and first six months of 2022 was $2.4 billion and $4.4 billion, respectively, increases of $161 million (7%) and $313 million (8%) compared to the same periods in 2021, according to BNSF, which released its second-quarter 2022 earnings statement on Aug. 9. Operating ratios were 63.2% and 63.9% for the second quarter and first six months, respectively, increases of 2.8% and 1.9% compared to the same periods in 2021.

Total revenues for the second quarter and first six months of 2022 increased 14% and 12% in each period compared with the same periods in 2021, reflecting lower volumes of 6% in the second quarter and 4% in the first six months. The average revenue per car/unit increased 22% for the second quarter and increased 18% for the first six months of 2022 when compared to the corresponding periods in 2021 resulting from higher fuel surcharge revenue driven by higher fuel prices along with increased rates per car.

 Source: Amounts derived from the GAAP results in the Burlington Northern Santa Fe, LLC Forms 10-Q for the period ended June 30, 2022. 
(a) Operating ratio excludes impacts of BNSF Logistics. 

Other second-quarter 2022 highlights:

  • Consumer Products volumes decreased 7% and 8%, respectively, for the second quarter and first six months of 2022 compared with the same periods in 2021 primarily due to lower international intermodal shipments resulting from supply chain challenges, partially offset by an increase in domestic intermodal volume and higher automotive shipments.
  • Agricultural Products volumes decreased 3% and 4%, respectively, for the second quarter and first six months of 2022 compared with the same periods in 2021 primarily due to lower grain exports, partially offset by higher volumes of renewable diesel and oil feedstocks.
  • Industrial Products volumes decreased 4% and 2%, respectively, for the second quarter and first six months of 2022 compared with the same periods in 2021. The volume decreases in the second quarter and first six months were primarily due to a decrease in petroleum related to lower demand for shipments of crude by rail, with the decrease in the first six months partially offset by increased volumes in other product categories.
  • Coal volumes decreased 3% and increased 5%, respectively, for the second quarter and first six months of 2022 compared with the same periods in 2021. The volume decrease in the second quarter was primarily due to network challenges, while the volume increase for the first six months of 2022 was due to increased electricity generation, higher natural gas prices and improved export demand.

Listed above are details by business units, including revenues, volumes and average revenue per car/unit.
Source: Amounts derived from the GAAP results in the Burlington Northern Santa Fe, LLC Form 10-Q for the period ended June 30, 2022 and March 31, 2022. Second-quarter volumes are calculated as the difference between YTD June and YTD March amounts. 

Operating expenses for the second quarter and first six months of 2022 increased 19% and 15%, respectively, compared with the same periods in 2021. The increase in expenses, BNSF says, reflected increased fuel and compensation and benefits expenses, including the following changes in expenses:

  • Fuel expense increased 84% and 72% in the second quarter and first six months of 2022, respectively, compared to the same periods in 2021. The increases were primarily due to higher average fuel prices, partially offset by lower volumes. Locomotive fuel price per gallon increased 89% and 75% in the second quarter and first six months of 2022, respectively, compared to the same periods in 2021.
  • Compensation and benefits expense increased 6% and 5% in the second quarter and first six months of 2022, respectively, compared to the same periods in 2021. The increases were primarily due to wage inflation, health and welfare costs, and lower productivity.
  • There were no significant changes in purchased services, depreciation and amortization, equipment rents, materials and other or interest expense.
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