Houston-headquartered tank barge big Kirby Corporation (NYSE: KEX) yesterday reported third and fourth quarter 2022 outcomes that noticed earnings for the quarter attain $37.3 million, in contrast with $11.0 million within the prior 12 months similar quarter. For the 2022 full 12 months, Kirby reported internet earnings of $122.3 million or $2.03 per share, in contrast with a internet lack of $247 million in 2021.
Kirby President and CEO David Grzebinski commented, “Kirby’s fourth quarter earnings confirmed vital progress year-over-year pushed by improved fundamentals in each companies. Looking ahead into 2023, the outlook for marine transportation and distribution and providers could be very favorable, and we anticipate continued progress in earnings in the course of the 12 months.
“In inland marine, we experienced steady market conditions with barge utilization rates in the 90% range and pricing increases on term contract renewals in the low teens year-over-year. As anticipated, the efficiency of our operations declined in the fourth quarter due to low water conditions on the Mississippi River and the onset of winter weather conditions, which contributed to a 147% increase in delay days as compared to the third quarter. Despite these headwinds, inland marine showed continued improvement in margins with operating margin improving into the low teens.”
“In our coastal marine business, overall market conditions remained steady during the fourth quarter with low to mid-90% utilization in barges and continued improvement in spot market and term contract pricing. These trends were partially offset by unfavorable weather conditions and planned maintenance leading to a slight sequential decrease in operating margins into the low single digits.”
Looking forward to 2023, Grzebinski mentioned, “We exited 2022 with solid strength in our businesses. The marine market remains healthy and we expect favorable market conditions in 2023. Our barge utilization is strong in both inland and coastal, and rates are steadily increasing.”
INLAND MARINE
In inland marine, Kirby’s 2023 outlook anticipates favorable market circumstances with continued progress in buyer demand, regular volumes from refinery and petrochemical crops, and modest internet new barge building within the {industry}. These elements are anticipated to end in barge utilization charges within the low to mid-90% vary all year long. Overall, inland revenues are anticipated to develop by low double digits on a full 12 months foundation. Barring additional price inflation and rising gasoline prices, the corporate expects working margins to be within the mid-teens on common for the total 12 months with enchancment because the 12 months progresses.
COASTAL MARINE
In coastal marine, Kirby expects modestly improved buyer demand by the steadiness of the 12 months with barge utilization within the low to mid-90% vary. Rates are anticipated to proceed slowly bettering, although significant good points stay challenged by underutilized barge capability throughout the {industry}. Revenues and working margins are anticipated to be impacted by an approximate doubling of deliberate shipyard upkeep days with ballast water therapy installations on sure vessels. For the total 12 months, coastal revenues are anticipated to be flat in comparison with 2022. Coastal working margins are anticipated to close break-even to low single digits on a full 12 months foundation.”
You can learn Grzebinski’s full remarks and get all of the numbers HERE
BARGE ORDERING “ANEMIC”
You can even, courtesy of Seeking Alpha, learn a transcript of Kirby’s convention name with monetary analysts. Among the fascinating snippets to emerge from that’s Grzebinski’s feedback on an analyst’s comment that there have been simply 22 tank barges constructed final 12 months industry-wide.
“Yes, that’s about right,” mentioned Grzebinski. “The order book from what we hear is anemic and we don’t see anybody building. Now there could be some people that tied up some barges during the pandemic and there may be some of those coming back. But again, I think you see a net decline in barges in 2023.”
Read the convention name transcript HERE
