Øresundsbro Konsortiet’s revenue continues to rise. Profits for Q1 totalled DKK 259 million before value adjustment, which is an increase of DKK 10 million compared to the same period last year. At the Annual General Meeting in April, the owners approved the financial targets and the dividend policy.
In Q1 2018, traffic across the Øresund Bridge increased for all categories except commuting, which declined during the period under review. This is due in part to Easter falling in April last year whereas this year, it was mainly in March. The Easter holidays, which mean less commuter traffic, occurred in Q1 this year. Another factor is that carrier responsibility – which means that train operators conduct identity checks of passengers crossing the border – was still in force in Q1 2017. This had an impact on commuter traffic.
Decision on dividend policy
In the 1991 government agreement on the fixed link across Øresund between Sweden and Denmark, it was decided that the landworks (the motorway and railway that adjoin the link) on both sides of the Øresund waterway should be funded from fees from motor and rail traffic. In practice, this means that Øresundsbro Konsortiet pays dividend to its owners, SVEDAB AB and A/S Øresund, the companies that have financed the landworks. The dividend has been accounted for in the project’s repayment period forecasts, which are regularly published by the Consortium.
In the Consortium’s Annual Report 2017, the repayment period was calculated as 2033 based on current dividend forecasts. According to previous forecasts, the entire link, including the landworks on the Swedish and Danish sides, would be repaid by 2050.
However, at the Consortium’s Annual General Meeting on 26 April 2018, the owners decided to increase the annual dividend payment, which means that the Consortium’s debt is now expected to be repaid in 2050. At the same time, this means that A/S Øresund and SVEDAB AB’s debt will be less than previously expected and that the debt in these companies can be repaid more quickly.
The overall economics of the Øresund project is not affected by the above in that the investments in the fixed link and in the adjoining facilities will be paid from revenue from the Øresund Bridge. The decision only impacts the respective companies’ repayment periods
The charges for crossing the bridge will not be affected either because these are set by the Consortium on a commercial basis and to ensure repayment.
Main items for the period (DKK million)
| Jan – Mar 2018 | Jan – Mar 2017 | Development | |
| Revenue, road | 277 | 267 | 10 |
| Revenue, railway | 126 | 126 | - |
| Other income | 5 | 5 | - |
| Total revenue | 408 | 398 | 10 |
| Operating expenses | - 58 | - 59 | 1 |
| Depreciation | -69 | -69 | - |
| Operating profit | 281 | 270 | 11 |
| Financial income and expenses | -22 | -61 | 39 |
| Profit before value adjustments | 259 | 209 | 50 |
| Value adjustment, fair value effect, net* | 149 | 181 | |
| Value adjustment, exchange rate effect net* | 40 | -6 | |
| Profit for the period | 448 | 384 |
* The value adjustment is an accounting principle whereby financial assets and liabilities are determined at their market value. The value adjustment is disclosed under Financial Income and Expenses. The value adjustment has no effect on the company’s ability to repay its debt.
Traffic development for the period January-March
| Traffic per day 2018 | Traffic per day 2017 | Development in traffic | |
| Leisure | 5,102 | 4,726 | 7.9% |
| Commuter | 5,749 | 6,346 | -9.4% |
| Business | 3,079 | 3,008 | 2.4% |
| Cash, etc. | 2,107 | 2,052 | 2.7% |
| Passenger cars, total* | 16,038 | 16,132 | -0.6% |
| Lorries | 1,355 | 1,290 | 5.1% |
| Coaches | 98 | 88 | 11.2% |
| Total | 17,492 | 17,510 | -0.1% |
* The category also comprises passenger cars with a trailer as well as vans and motorcycles.