Øresundsbrons result for Q3

Bridge traffic improves – but still a significant decline

Road traffic across the Øresund Bridge improved during the summer following a significant decline in the second quarter owing to the corona pandemic. Much more traffic is needed before there is a return to normal levels.

In the first nine months of the year, traffic fell by 37.8 per cent compared to the same period last year. The third quarter saw a fall of 35 per cent.

Øresundsbro Konsortiet’s profits before value adjustment totalled DKK 631 million for the January-September period – a fall of DKK 373 million compared to the same period last year.

Road traffic has been strongly affected by the corona crisis, particularly owing to the entry restrictions, increased home-working and almost non-existent leisure trips. Denmark reopened its borders to Sweden on 30th July and Sweden lifted its recommendation against non-essential travel to Denmark at the same time.

"Traffic levels gradually increased over the course of a few weeks during the summer concurrently with the reopening of the border. The recovery was reflected in leisure traffic, particularly from Denmark. But on the basis of the sharp decline, which was around 70 per cent in the first weeks, the entire year’s revenue and traffic will be greatly affected,” says Kaj V. Holm, Acting CEO.

Road traffic revenue fell by DKK 381 million to DKK 782 million in the first nine months of the year compared to the same period last year. Railway revenue is not affected by traffic volume as this is index-linked on an annual basis. This means that revenue increased by DKK 2 million to DKK 386 million over the period.

"We now assess that annual profits before value adjustment will be DKK 500-550 million down on last year, when profits totalled DKK 1,281 million. However, there is considerable uncertainty attached to this and depends on the rate of infection and entry restrictions,” says Kaj V. Holm.

Operating expenses fell from DKK 191 million to DKK 173 million while interest expenses fell by DKK 48 million to DKK 101 million. The Consortium’s depreciation rose by DKK 59 million to DKK 279 million owing to a revised depreciation plan for part of the link. The operating result amounted to a profit of DKK 732 million, which is a fall of DKK 421 million.

Coach traffic saw a significant decline of 64.9 per cent between January-September this year, and commuter, leisure and business traffic were severely affected. Commuter traffic fell by 25.5 per cent, leisure traffic by 41.7 per cent and business traffic by 46.3 per cent compared to the same period last year.

Freight traffic across the bridge, which showed a slight decline of 2.6 per cent, was more or less at the same level as last year. The number of vans and lorries under 20m fell marginally while longer combination vehicles - lorries over 20m - continued to rise.

"The upturn came to a slight halt in the third quarter. Since the end of August and until the start of October, there was a fall of 20-25 per cent in traffic overall compared to last year’s figure,” says Kaj V. Holm.

Main items for the period (DKK million)

	Jan-Sept 2020	Jan-Sept 2019	Development
Revenue, road	782	1,163	-381
Revenue, railway	386	384	2
Other revenue	17	18	-1
Total revenue	1,185	1,565	-380
Operating expenses	-173	-191	18
Other operating expenses	-1	-1	-
Depreciation	-279	-220	-59
Operating profit	732	1,153	-421
Financial items	-101	-149	48
Profit before value adjustments Value adjustmenter	631	1,004	-373
Value adjustment, fair value effect net*	-216	-783
Value adjustment, exchange rate effect, net*	14	61
Profit for the period	429	282

* The value adjustment is an accounting principle where financial assets and liabilities are determined at their market value. The value adjustment appears under financial items. The value adjustment has no effect on the company’s ability to repay its debt.

Road traffic development for January-September 2020:

	Traffic per day 2020	Traffic per day 2019	Traffic development trafik (%)
Passenger cars	11,445	19,282	-40.6
BroPas Fritid (Leisure)	4,046	6,939	-41.7
BroPas Business	1,488	2,985	-46.3
BroPas Pendler (Commuter)	4,089	5,489	-25.5
Cash	1,821	3,869	-52.9
Freight traffic**	1,628	1,672	-2.6
Lorries > 9 m.	1,377	1,415	-2.7
Vans 6-9 m.	252	257	-2.2
Coaches	60	171	-64.9
Total	13,134	21,125	-37.8

* Passenger cars include vehicles with trailers and motorcycles.
** Freight traffic includes all freight transport exceeding 6 metres as since 2019, the toll station has been able to provide a more comprehensive categorisation of vehicles.