Press release from the NSB Group The NSB Group with record results
NSB had its best result ever in 2013. – Passenger rail and real estate are the most significant contributors to the good results, says CEO Geir Isaksen in NSB.
The operating profit for the NSB Group is 1 457 million NOK, compared to 1 166 million NOK in 2012. Profit before tax in 2013 is 1 281 million NOK, compared to 871 million NOK in 2012.
– This is very gratifying. That we strengthen our ability to deliver and our financial results is important to society and the environment, says CEO Geir Isaksen.
Environmental Contributions
More and more people choose to travel by NSB’s trains. The total growth in 2013 was as much as 7.3 % – or approximately 4.1 million more journeys.
– The most important contribution from NSB, with respect to the environment, is to get more people to travel by public transport. Calculations show that the increase in the number of train passengers saved the environment of 5 500 tonnes of CO2, says Isaksen.
For individual lines, such as Oslo-Skien, the increase has been even greater, with as much as 23.2 % in 2013.
– We also see that the increase continues. In January 2014 the increase in number of passengers for the intercity lines was a total of 9.2 % compared to January 2013, says Isaksen.
In total there were 60.5 million journeys by NSBs trains during 2013.
Nettbuss also had an increase in number of passengers. In 2013 137 million journeys where registered, compared to 133 million journeys the year before.
Investments in new trains
The economic results are important to ensure our customers a good service in the future. In 2013 NSB used 1.2 billion NOK to purchase new trains. This year a similar amount will be used.
The improved result for the passenger trains is mainly due to an increase in number of passengers. The real estate operations also deliver strong results. This is due to sale of property and unrealised fair value changes on investment property.
– The bus operations deliver a weak operating result. This is mainly due to reduced profitability for certain tenders and reduced number of travels for express bus. The freight operations also have weak results. This is due to CargoNet transporting less freight as well as there being problems with the infrastructure, amongst others on the Dovre line, says Isaksen.
The results from the train maintenance are stable and good.
The NSB Group’s earnings are good. After an overall assessment the Board has resolved to propose a dividend to the owner of 393 million NOK. This amounts to 50 % of the profit of the year excluding unrealised value changes on investment property.
Press contact:
Mai-Bente Paulsen, Head of public relations and communication, NSB Group
Tel: 0047 472 85 656
About the business areas
Passenger train operations
Revenues for the passenger train operations for 2013 where 6 577 million NOK (6 152 million NOK), an increase of 6.9 % compared to last year. Operating profit for the passenger train operations was 624 million NOK (378 million NOK), an improvement of 246 million NOK compared to last year.
A significant part of the growth was due to an increase in the number of passengers and increased public purchase of passenger rail services. The number of journeys has increased by 7.3 % to 60.5 million. The bulk of the growth has come as a result of the schedule change and improved service for the Eastern part of Norway.
– I look forward to Jernbaneverket (the infrastructure owner) completing their work on the infrastructure for the Eastern part of Norway so that the service provided may be increased further, says Isaksen.
Bus operations
The bus operations consist of the parent company Nettbuss AS with additional 45 wholly owned subsidiaries in Norway, Sweden and Denmark and 9 associated companies.
Total revenues for 2013 are 6 046 million NOK (5 598 million NOK), an increase of 8 % from the year before. The operating profit for the operation is 64 million NOK (-5 million NOK).
The increase in revenue is mainly due to new tender contracts. The change in operating profit is partly due to weak profitability in a number of existing contracts and partly capital gains.
During 2013 the bus operations transported a total of 137 (133) million passengers divided between fixed routes and express bus, and drove 198 (192) million kilometres.
– We have lost money on some tenders for Nettbuss, and have implemented measures to improve operational efficiency, says Isaksen.
Freight operations
The operating revenue for CargoNet is 1 070 million NOK (1 094 million NOK), and operating profit -88 million NOK (-70 million NOK). The Swedish operations show profit after significant restructuring.
The operations in Norway are influenced by the closure of certain lines for longer periods and increased competition from road transport and other providers of freight by rail. The decrease in volume and high maintenance and repair cost contribute to the poor results.
Problems with the infrastructure also effected the operations in 2013. A total of 335 freight trains had to be cancelled due to unforeseen problems with the infrastructure.
– The results for CargoNet must improve considerably and several measures are to be put in place to increase profitability. We are however dependent on a more stable infrastructure if we are to retain the customers, says Isaksen.
Train maintenance
The train maintenance is performed by Mantena AS, which is the largest provider of maintenance services to train operators in Norway.
Operating income is 1 584 million NOK (1 498 million NOK). Operating profit is 49 million NOK (43 million NOK). – A long term strategy has meant that Mantena has established itself as a reliable supplier of train maintenance both in Sweden and Norway, and the company aims to maintain this position, says Isaksen.
Real estate operations
Rom Eiendom has through a number of years sought to develop good and environmentally friendly public transportation hubs. This is an important focus area and the property company will continue with hub development in the years to come.
Rom Eiendom also comprise of an area of approx. 730 000 square meters to let and a development area of approx. 2 million square meters. Rom Eiendom had an operating profit of 928 million NOK in 2013 (835 million NOK). The increase was mainly due to a reclassification of development property to investment property.
– Hub development will continue to be a priority for Rom Eiendom. It means a lot to the overall development of the NSB Group to establish good public transportation hubs with jobs, homes, shopping and service industry in a way that makes it easy to use public transport, says Isaksen.