Canadian Pacific Railway (CP) has reported net income of $765m in the second quarter of 2022, compared with $1.25bn during the same period last year.

This decrease was mainly the result of a termination fee secured in the second quarter of 2021 for scrapping a merger.

The firm’s diluted earnings per share in the three-month-period ended 30 June 2022 were $0.82, as against $1.86 in the prior year.

However, its total revenues rose 7% to $2.2bn from $2.05bn during this period, driven by higher freight revenue per revenue tonne mile (RTM).

Freight revenues contributed $2.15bn to the total revenue amount while non-freight revenues contributed $48m.

Operating income rose 6% to $868m from $820m, benefitting from reduced acquisition-related expenses and higher freight rates.

Adjusted operating income fell 3% to $887m, due to inflation and lower freight volumes as measured by RTMs, among others.

Total operating expenses increased 8% year-on-year to $1.33bn, mainly due to higher fuel prices.

The railroad’s operating ratio (OR) grew by 50 basis points (bps) to 60.6% compared with 60.1% in the second quarter of 2021. Its adjusted OR grew by 440 bps to 59.7% from 55.3%.

CP president and CEO Keith Creel said: “After a challenging first quarter of the year, I’m proud of the resiliency and discipline the CP team demonstrated to deliver these results.

“They continue to display the grit and tenacity it takes to run a world-class North American railroad and deliver for our customers.

“The strong demand environment for North American goods and commodities, coupled with our own unique growth initiatives and the promising upcoming Canadian grain crop, gives me confidence that we will continue to see momentum build into the back half of 2022 and beyond.”