Vy 2023: The customers are back

Operating revenues for 2023 amounted to NOK 19.1 billion, an increase of NOK 1.4 billion from the previous year. Operating profit was NOK 378 million in 2023 (NOK 407 million in 2022). In 2022, the result was positively impacted by the reversal of previous loss provisions on contracts. Adjusted for this effect, operating profit has improved by NOK 509 million in 2023. Growth in the number of bus and train journeys, index adjustment of contracts and own improvement measures contribute to improved results.

Continued growth in rail traffic

Vy tog is responsible for local and regional train traffic in Eastern Norway, on the Bergen and Vossa Line and between Oslo and Gothenburg. The Norwegian Railway Directorate awarded the two ten-year train contracts in Eastern Norway to Vy in June, and we started them at the annual train route change on 10 December. In addition, Vy has four train contracts in Sweden.

The overall punctuality of Vy's trains in Norway ended at 88 percent, slightly better than the previous year, but lower than the target of 90 percent. There were 62 million train journeys with Vy in Norway in 2023, an increase of 18 per cent compared to 2022 and on par with 2019.

– We have been curious to see how new travel patterns will affect rail traffic. The figures show that customers are back on the trains, and although many work from home from time to time, passenger numbers on trains through Oslo has increased during rush hour traffic, says Bakstad.

The operating profit for passenger train operations was NOK 275 million (NOK 576 million in 2022). In 2022, provisions for losses on contracts amounting to NOK 530 million were reversed. Adjusted for this effect, the operating profit of Vy tog improved by NOK 229 million compared to the previous year.

Good development in bus operations

Vy buss runs buses on tender for county municipalities in Norway and Sweden and commercial tour and express buses in Norway and Sweden. For commercial bus traffic, growth continues and our offer is adopted to demand.

– We know our customers and the market well, and in 2023 we extended the bus route between Kristiansand and Stavanger all the way to Bergen. We also started our largest electric bus contract in Kongsberg and Vikersund with over 100 electric buses, says Bakstad.

Ensuring adequate staffing remains a challenge for bus operations, and targeted efforts are being made to increase the recruitment of new drivers.

Operating profit in Vy bus ended at NOK 303 million in 2023 (NOK 25 million in 2022). This improvement in results is mainly due to travel and revenue growth as well as index adjustment of compensation for tender contracts.

Storms and operational problems affect freight customers

CargoNet's freight volumes were reduced by 3 per cent in 2023, and operating profit ended at NOK -79 million (19 million in 2022).

– 2023 has been a tough year for CargoNet. The combination of extreme weather called Hans and the destruction of the Randklev bridge in August, as well as other challenges with the infrastructure and rolling stock, has reduced the quality of our deliveries. We are sorry for this, and we are doing everything we can to improve the situation, says Bakstad.

– Although lower economic growth has reduced the demand for freight transport somewhat over the past year, we are experiencing increased interest in environmentally friendly freight transport by rail. This gives us reason to be optimistic. However, improved and predictable framework conditions are essential for long-term profitability and opportunities to make the necessary reinvestments in rolling stock, continues Bakstad.

Public transport tours are popular

For Vy's tourism activities, customers are well on their way back after two years in which this business has been severely affected by the corona pandemic.

– We see a significant improvement in demand for public transport-based round trips with fjord, mountain and cultural experiences, especially from Europeans and Americans. The number of journeys on the Flåm Railway increased by 40 per cent compared to last year, and we are now looking forward to a summer with even more Norwegian and international tourists, concludes Bakstad. 

The 2023 Annual and Sustainability Report, as well as the 2023 Annual Report Presentation will be available before February 23rd.