Providence and Worcester Railroad Company announced its results of operations for the year ended December 31, 2005. Net income for the year increased to $1.3 million from $1.0 million in 2004.

Diluted income per share increased to $.28 in 2005 from $.23 in 2004.

Operating revenues for 2005 were $26.7 million, an increase of $1.8 million (7.2%) from $24.9 million in 2004. These higher revenues are attributable to increases in the average revenue received per conventional carloading and intermodal container. These increases result from increased freight rates, including diesel fuel surcharges, as well as a shift in the mix of freight hauled toward higher rated commodities.

Operating expenses for 2005 increased by $1.2 million (4.8%) to $26.0 million from $24.8 million in 2004. The most significant item was a $666,000 increase in the cost of diesel fuel resulting from significantly higher prices paid for petroleum products.