K-Sea reports improved results
K-Sea Transportation Partners L.P., headquartered in East Brunswick, N.J., reported improved revenue and earning in the third quarter and first nine months of its fiscal year.
The nation’s largest coastwise tank barge operator said the better results reflected expansion of its fleet, including purchase of a company on the West Coast.
K-Sea had third quarter net income of $4 million, compared to $1.2 million in the year-earlier period. Revenue improved to $55.6 million from $46.1 million.
For the nine months, the company's net income jumped to $12 million from $2.8 million, on revenue of $166.6 million, up from $130.6 million for the prior year period.
The increases came “primarily from the expansion of the company’s barrel-carrying capacity, including the acquisition of Sea Coast Transportation LLC in October 2005 and the addition of six newbuild tank barges since January 2006, partially offset by increases of $5.1 million in depreciation and amortization and $2.7 million in general and administrative expenses in support of the Company’s growth,” K-Sea said. Of the $2.7 million increase in general and administrative expenses, $1.4 million related to the acquisition of Seattle-based Sea Coast and another small operation in Philadelphia in the fall of 2006.
Timothy Casey, chief executive officer, noted the company is continuing to expand, taking delivery of a 28,000-barrel tank barge in January and a 100,000-barrel tank barge in March. It also purchased two tugs in April, in addition to three purchased earlier in the fiscal year. The company has seven additional tank barges under construction, which are scheduled for delivery at intervals of every few months through the end of calendar 2008.
K-Sea has a fleet of 62 tank barges, two tankers and 46 tugboats.