The tank barge operator posted net earnings attributable to shareholders of $38.1 million on revenues of $458.7 million, year-over-year drops of 37.6 percent and 21.9 percent, respectively.
Houston, Texas-based tank barge operator Kirby Corporation saw net earnings attributable to shareholders tumble 37.6 percent year-over-year for the first quarter of 2016 to $38.1 million, according to the company’s most recent unaudited financial statements.
Basic and diluted earnings per share for the quarter totaled $0.71 per share, compared to $1.09 per share for the first quarter of 2015.
Kirby’s consolidated revenues plummeted 21.9 percent year-over-year during the quarter to $458.7 million.
The company’s marine transportation segment posted revenues of $378.3 million and an operating income of $69.8 million, year-over-year declines of 9.9 percent and 27.5 percent, respectively.
Kirby’s inland barge transportation market had a tank barge utilization range between 90-95 percent during the quarter. “Demand for inland barge transportation of petrochemicals and refined petroleum products was stable, while demand for black oil was weaker on both a year-over-year and sequential basis,” Kirby said.
Meanwhile, Kirby’s coastal marine transportation market maintained a utilization rate between the high 80 percent to low 90 percent range. “In the coastal marine transportation market, demand for the transportation of refined petroleum products, black oil, and petrochemicals was stable, although distillate demand in the Northeast was relatively weak due to warmer than average winter temperatures,” the company said.
The diesel engine services segment’s revenues for the quarter fell 52.1 percent year-over-year to $80.4 million. In addition, the segment posted an operating loss of $0.8 million, a 109.1 percent decline from the $8.8 million operating profit for the first quarter of 2015. Kirby attributed the diesel engine services segment’s operating loss and lower revenues primarily to a lack of pressure pumping unit manufacturing, service and remanufacturing, along with weaker than anticipated sales of engines, transmissions and parts in the land-based diesel engine services market. The segment’s sluggish results were also due to customer deferrals of major maintenance projects in the marine diesel engine services market, along with a continued weak Gulf of Mexico oilfield services market.
Looking ahead at the second quarter of 2016, Kirby closed the acquisition of SEACOR Holdings Inc.’s inland tank barge fleet April 15 for $88 million in cash. The purchase consisted of 27 inland 30,000 barrel tank barges, 13 inland towboats, one 30,000 tank barge, and one towboat currently under construction. “The cost of the vessels under construction is included in the purchase price and the vessels are expected to be delivered prior to the end of the 2016 second quarter,” Kirby said.
Also included in the agreement was the transfer of a Florida-based ship docking tugboat to SEACOR.
“Our earnings guidance for the 2016 second quarter is $0.65 to $0.75 per share compared with $1.04 per share in the 2015 second quarter,” Kirby President and CEO David Grzebinski said in a statement. “We are narrowing and lowering our full year 2016 guidance to $2.80 to $3.20 per share.”
Kirby transports bulk and liquid products through the Mississippi River, the Gulf Intracoastal Waterway, along all three U.S. coasts, and in Hawaii and Alaska. The company also operates offshore dry-bulk barge and tugboat units, which are responsible for transporting dry-bulk cargo through the U.S. coastal trade. In addition, Kirby’s Diesel Engine Services segment provides after-market service for medium and high speed diesel engines and reduction gears.
Kirby Corp.’s Q1 profits tumble
