Kirby’s new inland towboat Bowling Green, delivered from C&C Marine (source: /Kelly Fuller)
Market conditions for US coastal and inland waterways transport have improved this year due to rising demand for bulk cargo, especially coal shipments
Kirby Corp, one of the largest owners of US coastal and inland transport assets, has reported improved revenues and earnings due to higher rates. It expects increased demand in marine transport, distribution and services to continue in the second half of 2022, based on strengthened markets in Q2 2022.
Consolidated revenues for Q2 2022 were US$698M compared with US$560M for Q2 2021. Kirby’s net earnings in Q2 2022 were US$29M versus US$10M in the same period of 2021.
“Both of our segments continued to improve during the quarter, delivering higher revenue and operating income sequentially and year-on-year,” said Kirby’s president and chief executive David Grzebinski.
“In the inland marine transport market, pricing on spot and term contracts continued to move higher,” he said. “We anticipate continued gradual upward movement in pricing in H2 2022 with Q4 2022 contract renewals setting up for a strong 2023.”
Kirby’s marine transport revenues for Q2 2022 were US$406M compared with US$333M for the same period in 2021.
“In our coastal marine business, overall market conditions steadily improved during Q2 2022,” said Mr Grzebinski.
“Utilisation rates remained in the low 90% range with modest improvements late in the quarter. These trends, combined with previously announced cost saving actions, and higher coal shipments, contributed to coastal marine achieving positive operating margins.”
Operating income from Kirby’s marine transport in Q2 2022 was US$31M, compared with US$19M for Q2 2021.
Revenues in the inland market increased 25% compared with Q2 2021, primarily due to increased volumes, barge utilisation, pricing and fuel rebills.
In the coastal market, revenues were 12% higher compared with Q2 2021 and represented 22% of segment revenues.
