Wednesday, April 24, 2013

"Kirby Corporation Announces 2013 First Quarter Results" ($CNRD)

Kirby first quarter earnings released today:

  • "We were pleased with our overall first quarter performance, the continued strength of our inland tank barge markets and particularly the improvement in our coastal tank barge markets where we are experiencing consistently improving equipment utilization and pricing."
  • Marine transportation revenues for the 2013 first quarter were $418.5 million compared with $336.0 million for the 2012 first quarter, and operating income for the 2013 first quarter was $89.3 million compared with $68.5 million for the 2012 first quarter.
  • Inland marine transportation continued its strong performance with tank barge utilization consistently in the 90% to 95% range and favorable pricing trends.  The demand for the transportation of petrochemicals, black oil, including crude oil, refined petroleum products and agricultural chemicals on the inland waterways remained strong and consistent with 2012. 
  • Coastal marine transportation continued to improve with tank barge utilization in the 90% range, a significant improvement over the 75% range reported in the 2012 first quarter, and a continued improvement over the 85% to 90% range reported for the 2012 fourth quarter, all leading to higher term and spot contract pricing.  Coastal revenues represented 32% of the marine transportation 2013 first quarter revenues. 
  • Inland fleet utilization is projected to remain in the 90% to 95% range, leading to continued favorable term and spot contract pricing.  For our coastal fleet, second quarter utilization is projected to remain in the 90% range with continued favorable term and spot contract pricing.
  • Our 2013 capital spending guidance range remains in the $190 to $200 million range, including approximately $115 million for the construction of 55 inland tank barges and three inland towboats, and approximately $10 million in progress payments on the construction of two new offshore integrated dry-bulk barge and tugboat units.
Still looks bullish. It's nice for Conrad that they even have exposure to other types of work besides barges - for when the barge cycle inevitably turns - like the GOM energy related repair business.

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