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Houston-headquartered Kirby Corporation (NYSE: KEX) as we speak reported third quarter outcomes that beat analysts’ expectations. Net earnings had been $39.1 million or $0.65 per share. Total revenues had been $745.8 million, up 25% in comparison with the 2021 third quarter with regular beneficial properties in each marine transportation and distribution and companies.
Inland marine outcomes included a 35% year-over-year enhance in revenues with working margins within the low double digits
“I am pleased with Kirby’s third quarter results and the improvement in both of our segments, said President and CEO David Grzebinski. “During the third quarter, our inland marine transportation business delivered strong results with significant sequential and year-over-year improvement in profitability. Tight market conditions in inland led to sequential increases in spot market rates in the high single digits, and term contract pricing that continued to push higher. Overall, higher demand and pricing improvements helped to improve inland operating margins into the low double digits during the quarter.”
“Coastal marine transportation also delivered improved financial performance with steady gains in revenue and operating income,” Grzebinski continued. “Market conditions were favorable in the quarter, with our barge utilization in the low to mid-90% range and modest increases in spot prices. These factors coupled with continued cost discipline resulted in further improvement in operating income for our coastal business during the third quarter.”
“In our distribution and services segment, lingering supply chain constraints continued to impact our ability to deliver new equipment during the third quarter. Despite these headwinds, we were able to show both sequential and year-over-year improvements in revenues and operating income. Strong demand and pricing improvements contributed to increased profitability with operating margins improving to the high single digits,” Grzebinski concluded.
MARINE TRANSPORTATION
Marine transportation revenues for the 2022 third quarter had been $433.0 million in contrast with $338.5 million for the 2021 third quarter. Operating revenue for the 2022 third quarter was $41.7 million in contrast with $16.9 million for the 2021 third quarter. Segment working margin for the 2022 third quarter was 9.6% in contrast with 5.0% for the 2021 third quarter.
In the inland market, common 2022 third quarter barge utilization was within the low 90% vary in comparison with the low 80% vary within the 2021 third quarter. Operating situations had been favorable with fewer climate and lock delays contributing to a 16% lower in delay days versus the year-ago interval. During the quarter, common spot market charges elevated within the excessive single digits sequentially and within the mid 20% vary in comparison with the 2021 third quarter. Term contracts that renewed within the third quarter elevated within the low-teens vary on common in comparison with the year-ago interval. Revenues within the inland market elevated 35% in comparison with the 2021 third quarter primarily attributable to elevated volumes, barge utilization, pricing, and gas rebills. Inland’s working margin improved into the low double digits regardless of ongoing headwinds from excessive gas prices and inflationary pressures. The inland market represented 80% of phase revenues within the third quarter of 2022.
In coastal, market situations continued to enhance modestly in the course of the quarter, with Kirby’s barge utilization within the low to mid-90% vary. Pricing within the spot market elevated within the high-single digits sequentially and time period contract renewals elevated within the 20% vary year-over-year. Revenues within the coastal market had been 6% greater in comparison with the 2021 third quarter and represented 20% of phase revenues. The coastal enterprise continued to indicate enchancment in working margins with margins within the low-to-mid single digits in the course of the quarter.
FOURTH QUARTER OUTLOOK
In his remarks on the 2022 fourth quarter outlook, Grzebinski mentioned, “We had an excellent quarter with each companies performing nicely. Refinery exercise stays at excessive ranges, our barge utilization is powerful in each inland and coastal, and charges are steadily rising. While we count on some near-term headwinds associated to document low water situations on the Mississippi River, rising delay days attributable to regular seasonal climate situations, and excessive ranges of shipyard exercise in coastal, our outlook within the marine market stays robust.
CAPITAL SPENDING
Kirby expects 2022 capital spending of between $170 to $190 million. Approximately $5 million is related to the development of recent inland towboats, and roughly $145 million to $155 million is related to marine upkeep capital and enhancements to present inland and coastal marine gear and facility enhancements. The steadiness of roughly $20 to $30 million largely pertains to new equipment and gear and facility enhancements in distribution and companies, in addition to data expertise initiatives in company.
