JANUARY 31, 2019– America’s biggest container barge driver will get back at bigger. Kirby Corporation (NYSE: KEX) today introduced that it has actually authorized a conclusive arrangement to get the Cenac Marine Services, L.L.C. fleet for about $244 million in cash money, to be funded with extra loanings.
Cenac’s fleet includes 63 30,000-barrel inland container barges with about 1.9 million barrels of ability, 34 inland towboats, as well as 2 overseas tugboats. Closing of the purchase is anticipated to happen late in the initial quarter of 2019 as well as goes through popular closing problems, consisting of governing authorizations.
Kirby likewise reported a 4th quarter 2018 loss of $24.4 million, compared to revenues of $231.3 million for the 2017 4th quarter, after taking single $1.16 per share problems costs mostly connected to older seaside vessels that need ballast water therapy systems
David Grzebinski, Kirby’s President as well as Chief Executive Officer, commented, “While our quarter’s financial results were negatively impacted by one-time impairment charges in our coastal and Osprey barge businesses, the underlying results from operations were solid. Excluding the non-cash impairment charges, our earnings per share of $0.75 compares to our guidance range of $0.55 to $0.75.”
“The acquisition of Cenac’s young fleet of well-maintained inland tank barges and modern boats is an ideal complement to Kirby’s operations,” claimedGrzebinski “Cenac has a strong history of operational excellence, and is well respected by the industry and its customers. Cenac’s inland fleet of 30,000-barrel tank barges, of which approximately 80% are clean and 20% are heated black oil vessels, has an average age of only four years. Similarly, Cenac’s fleet of modern inland towboats and offshore tugboats has an average age of only six years. The addition of these vessels to Kirby’s fleet will not only further reduce our average age profile, but will also further enable us to avoid significant capital outlays for new vessels in the future.”