The Houston-based tank barge operator’s net earnings fell 27.8 percent year-over-year in the first quarter of 2017 to $27.5 million.
Tank barge operator Kirby Corp. reported net earnings of $27.5 million, or $0.51 per share, on revenues of $491.7 million during the first quarter of 2017.
These numbers compare with first quarter 2016 net earnings of $38.1 million, or $0.71 per share, on revenues of $458.7 million.
Broken down by segment, marine transport’s revenues totaled $343.7 million, down $34.3 million from the first quarter of 2016, while diesel engine services’ revenues reached $148.1 million, up $67.7 million year-over-year.
The decrease in net revenues is mainly due to a drop in inland marine pricing and lower coastal marine equipment utilization, Kirby said. Measures have been taken in coastal market to cut costs, including releasing chartered tugboats, idling owned boats and barges, and reducing headcount until market conditions improve, the company explained.
In regards to the marine transport segment, the company made notice of stable volumes for agricultural chemicals, inland petrochemical, coastal black oil, and petrochemical and dry products. Seasonal weakness and warm weather in the Northeast and Alaska reflected in lower volumes for refined petroleum products, while spot pricing and spot contracts were flat or at lower levels compared to 2016. The operating margin for the segment was posted at 10.3 percent for the first quarter of 2017 compared with 18.4 percent for the first quarter of 2016.
Diesel engine services such as pressure pumping remanufacturing and transmission overhauls were strong during the first quarter, Kirby said. However, marine diesel engine services and new engine demand remained weak. The oil service supply vessel market for the Gulf of Mexico remained at depressed levels as well. The segment’s operating margin was posted at 9.3 percent for the first quarter of 2017, compared with 1 percent for the first quarter of 2016.
Kirby Corp. sees net earnings take a dip in Q1
