CALGARY — Canadian Pacific Railway Ltd. saw profits shoot up last quarter as crude-by-rail revenues increased and fuel costs declined.
The Calgary-based company says its net income rose 25 per cent to $434 million in the quarter ended March 31, compared to $348 million in the same period in 2018.
Quarterly revenues jumped to $1.77 billion, up six per cent from $1.66 billion last year.
On an adjusted basis, year-over-year diluted earnings per share rose three per cent to $2.79 from $2.70, far short of analyst expectations of $3.01, according to Thomson Reuters Eikon.
Revenues for energy, chemicals and plastics jumped 18 per cent to $315 million amid surging demand from Asian markets in the first quarter.
Grain revenues, which have broken company records recently, rose six per cent to $380 million, and container traffic and coal nudged up three per cent and four per cent to $380 million and $158 million, respectively.
CP Rail’s operating ratio, a key industry metric, improved by 180 basis points to 69.3 per cent.
Companies in this story: (TSX:CP)
The Canadian Press