BNSF Q1 coal revenues, volumes decline on lower utility demand

Houston — BNSF Railway reported a decrease in coal volumes and revenue in the first quarter of 2021, due to lower utility demand in the early part of the quarter, along with severe winter weather, which impacted deliveries.

The Fort Worth, Texas-based railroad reported Q1 coal volumes of 339,000 carloads, down from 368,000 carloads in the prior quarter and 384,000 carloads in the year-ago quarter, according to its first-quarter earnings report filed May 3 with the US Securities and Exchange Commission. It was the lowest coal volume in a first quarter in over 12 years.

Of the total 2.45 million carloads reported in Q1, coal volumes represented 13.8%, down from 14.1% in Q4 and 16.4% in the year-ago quarter.

In the first quarter, coal revenue totaled $686 million, compared with $697 million in Q4 and $766 million in the year-ago quarter.

However, coal's average revenue per unit (RPU) totaled a one-year high $2,024/car in Q1, up from $1,894/car in Q4 and $1,995/car in the year-ago quarter. It was the highest RPU in a quarter since $2,084/car in Q4 2019.

BNSF reported total operating Q1 revenues of $5.4 billion, down from $5.42 billion in the year-ago quarter, while total RPU was at $2,087, down from $2,200 a year ago. However, net income rose to $1.25 billion in Q1, up from $1.19 billion in the year-ago quarter.

The railroad, which is privately-held by investor Warren Buffett's Berkshire Hathaway holding company, transports the most coal in the US, primarily from the Powder River Basin. In 2020, the railroad delivered 1.4 million carloads of coal, while generating $2.66 billion in coal revenue, down 22% and 29%, respectively, on the year.