Øresundsbro Konsortiet I/S

04/28/2022 | Press release | Distributed by Public on 04/28/2022 01:26

Øresund Bridge delivers a profit increase and eight out of ten customers return

Øresund Bridge delivers a profit increase and eight out of ten customers return

Press | 2022-04-28

The Øresund Bridge exited Q1 with a profit of DKK 204 million before value adjustment - and road traffic overall has doubled compared to the same period last year. Profits for the first three months of the year are thus DKK 73 million up on last year, but DKK 67 million lower than the corresponding period in 2019 - which was not affected by travel restrictions.

Road revenue on the Øresund Bridge increased by DKK 105 million to DKK 260 million in the first quarter of the year compared to the same period last year.

"Eight out of ten customers from 2019 have returned. Freight customers are now our largest customer group as business, commuter and leisure traffic has not yet returned to normal levels. Higher fuel prices, more working from home, foreign exchange differences and fewer flights are some of the reasons," says Linus Eriksson, CEO of the Øresund Bridge.

Freight traffic across the Øresund Bridge remains at record high levels and increased by 11.5 per cent in Q1 compared to the same period in 2019. However, commuter and business traffic fell by 20.7 and 39.1 per cent during the period under review, which is partly due to the fact that Covid restrictions were in force until 9 February.

Since mid-February - in conjunction with the February half-term holiday and the lifting of restrictions - Danish leisure traffic has been at pre-pandemic levels while Swedish leisure customers contributed to a decline in overall leisure traffic of 24.2 per cent in Q1 compared to the same period in 2019. By comparison, leisure traffic at the start of the year was 40 per cent lower than in 2019

"We expect an upswing in leisure traffic during the summer as the many attractions are only one bridge away and Covid restrictions have been lifted. During the February half-term holiday, we clearly noted a growing interest in crossing the bridge as leisure traffic increased substantially. This will now be reinforced by the fact that journeys to and from Copenhagen Airport are picking up," says Linus Eriksson.

The Consortium's interest expenses rose by DKK 40 million as a result of higher inflation, which has a direct impact on the Consortium's real interest rate debt. Operating expenses fell by DKK 8 million compared to the same period last year.

Annual profits before value adjustment are still projected to be slightly higher than 2021. The Consortium estimates that profits will be at the upper end of the DKK 1,000-DKK 1,250 range.

"Covid restrictions have finally been lifted, but the border controls remain in force. Moreover, a bill for ID checks of travellers to Sweden has been put forward even though it has been put on hold for the time being. This strikes a blow against the creation of a streamlined existence on both sides of the bridge while the unpredictability impacts recovery and travel habits," says Linus Eriksson.

Main items over the period (DKK million)

Jan-March 2022

Jan-March 2021

Development

Revenue road

260

155

105

Revenue railway

135

130

5

Other income

4

6

-2

Total income

399

291

108

Operating expenses

-56

-64

8

Other operating expenses

-2

-

-2

Depreciation

-69

-68

-1

Operating profit

272

159

113

Financial items

-68

-28

-40

Profit before value adjustments

204

131

73

Value adjustment, fair value effect, net*

501

330

Value adjustment, foreign exchange effect, net*

9

23

Profit for the period

714

484

*Value adjustment is an accounting principle whereby financial assets and liabilities are stated on an ongoing basis at fair value. The value adjustment appears in the financial statements under financial items. The fair value adjustment has no effect on the company's ability to repay its debt.

Road traffic development in 2022

Traffic
per day

2022
Jan-Mar

Traffic
per day 2021

Jan-Mar

Traffic develop-ment
(%)

Traffic develop-ment

(number)

Traffic
per day

2019
Jan-Mar

Traffic develop-ment
(%)

Traffic develop-
ment (number)

Passenger cars

11,784

5,016

134.9 %

6,769

15,420

-23.6 %

-3,636

BroPas Leisure

3,821

955

300.1 %

2,865

5,039

-24.2 %

-1,218

BroPas Business

1,715

733

134.0 %

982

2,817

-39.1 %

-1,102

BroPas Commuter

4,506

2,947

52.9 %

1,559

5,685

-20.7 %

-1,179

Cash

1,742

381

357.2 %

1,363

1,879

-7.3 %

-137

Freight traffic**

1,797

1,647

9.1 %

150

1,611

11.5 %

186

Lorries > 9m

1,603

1,466

9.3 %

137

1,397

14.7 %

206

Vans 6-9m

194

181

7.2 %

13

214

-9.3 %

-20

Coaches

61

21

190.5 %

40

117

-47.9 %

-56

Total

13,642

6,684

104.1 %

6,959

17,148

-20.4 %

-3,506

* Passenger cars include cars with trailers and motorbikes.

** Freight traffic includes all freight transport 6m and above because since 2019, the toll station has allowed for more comprehensive vehicle categorisation.