K-Sea purchase boosts Kirby results

   The inland and coastal barge operator Kirby Corp. reported a profit of $52.7 million in the third quarter of 2011 ended Sept. 30, compared to $30.7 million in the same quarter last year
   Consolidated revenues for the 2011 third quarter were $563.6 million compared with $281.3 million reported for the 2010 third quarter.
   Joe Pyne, Kirby’s chairman and chief executive officer said “our record third quarter results were a reflection of strong United States petrochemical production levels, stable refinery production levels, and a continued strong exportation market, all leading to high inland tank barge utilization levels and favorable term and spot contract pricing.”
   He also noted that K-Sea Transportation Partners, which Kirby acquired on July 1, 2011, “was accretive to our third quarter operating results but, as anticipated, K-Sea’s operating results were offset by acquisition related expenditures, and higher interest expense and common shares outstanding associated with the acquisition.”
   Kirby has two main businesses, marine transportation and diesel engine services.
   The company said marine transportation revenues for the 2011 third quarter were $351.2 million, a 51 percent increase compared with the 2010 third quarter, and operating income was $78.1 million, a 52 percent increase compared with the third quarter of 2010. About 20 percent of that came from K-Sea.
   Kirby said volumes from United States petrochemical producers for both domestic and foreign destinations increased. Low natural gas prices made U.S. producers more competitive globally.
   “As a result, Kirby’s inland petrochemical fleet was close to fully utilized, operating in the low to mid 90% utilization levels. Kirby’s black oil products fleet also operated at close to full utilization levels, benefiting from stable United States refinery production levels, the exportation of heavy fuel oils and demand for the transportation of crude oil principally from the Eagle Ford shale formations in South Texas and from the Midwest to the Gulf Coast. The strong utilization levels in both the petrochemical and black oil products fleets led to higher term and spot contract pricing during the quarter.”