Americas News
Barge Operator Reports Record Profits in 2013
U.S. barge operator Kirby Corp. [NYSE:KEX] (Kirby) reports it achieved record net earnings for the fourth quarter of 2013, driven by strong marine fuel sales.
The company reported net earnings of $64.3 million on revenues of $568.4 million in the fourth quarter of 2013, up from profits of $57.9 million and revenues of $512.6 million one year earlier.
Kirby also reported record-setting net earnings for the full year, totaling $253.1 million on revenues of $2.24 billion.
"Our inland and coastal tank barge fleets continued to maintain high equipment utilization levels and favorable pricing trends during the fourth quarter, but our results were somewhat affected by high delay days associated with winter weather conditions," said Chairman and CEO Joe Pyne.
"Our land-based diesel engine services business remained challenged as excess pressure pumping horsepower continued to impact that market."
Over the year, the company invested $253.2 million in capital projects, including new inland tank barge and towboat construction and payments on construction of two offshore dry-bulk barges completed in Q2.
Looking into 2014, the company said it is watching the coastal marine transportation market's pricing trends and equipment utilisation, but it expects good results from marine transport in general.
"Our 2014 guidance assumes continued strong demand across all marine transportation markets with equipment utilization levels remaining in the 90% to 95% range with continued favorable pricing trends," Pyne said.
Kirby also reported record profits in the third quarter of 2013, citing demand and prices for marine transportation, as well as the August sale of its loss-making New York Harbour bunkering fleet.
