Americas News
U.S. Tank Barge Operator Boosts Q2 Profits
Houston, Texas based tank barge operator Kirby Corporation (Kirby) [NYSE:KEX] has announced second quarter 2012 net earnings were up a little over 14% to $47.6 million or $0.85 per share compared with $41.7 million or $0.77 per share for the same period in 2011.
Consolidated net earnings for the first six months of 2012 were $98.5 million or $1.76 per share, compared with $74.1 million or $1.38 per share in the first half of 2011.
"During the second quarter, we experienced overall continued strong inland tank barge utilisation and improved rates as United States petrochemical production remained strong," commented Chairman and CEO Joe Pyne.
Kirby, who is also a diesel engine service provider, said revenues for its marine transportation segment rose over 28% quarter-on-quarter to $342.2 million from $266.6 million in 2011.
Approximately 20% of that revenue was generated by Kirby Offshore Marine, the coastal tank barge fleet acquired in July of 2011.
Operating margins for the segment were 21.0% compared to 21.9% in the same period last year, and operating income was $71.7 million compared with $58.4 million for Q2, 2011.
During the quarter, the company said high U.S. production levels at petrochemical plants, stable refinery output and favourable demand for the movement of crude oil resulted in strong inland transportation demand with fleet utilisation "in the 90% to 95% range" as well as favourable pricing trends.
Kirby noted revenues were negatively impacted by excess capacity in the New York Harbour, as well as low water levels on the Mississippi River System which led to light loading of tank barges.
Diesel Engine Services revenues slipped to $169.7 million compared with $170.7 million for the 2011 period with operating income in the unit down to $15.1 million compared to $17.6 million for the same quarter in 2011.
The operating margin in the segment was 8.9% for the quarter compared with 13% for Q2 2011.
In providing third quarter guidance, Mr. Pyne said "Our earnings guidance for the 2012 third quarter is $0.87 to $0.97 per share compared with $0.94 reported in the same period of 2011. Our guidance reflects a continued strong inland marine transportation petrochemical and black oil products markets, favourable term and spot contract pricing and favourable marine and power generation diesel engine services markets. It also reflects the continuation of low water conditions throughout the Mississippi River System during the third quarter."
