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Mar 31, 2023
Kirby Q1 2023 Earnings Report
Kirby's Q1 2023 earnings were announced, revealing increased revenue and operating income across both segments, despite weather-related delays in marine transportation and supply chain disruptions in distribution and services.
Key Takeaways
Kirby Corporation reported a solid start to 2023 with improved revenue and operating income in both segments. The company's performance was driven by strong market conditions in inland marine and distribution and services, despite challenges from weather-related delays and supply chain disruptions. The company anticipates meaningful quarterly earnings progression for the remainder of the year.
First quarter 2023 earnings per share of $0.68.
Inland marine experienced strong market conditions with utilization in the low to mid-90% range and sequential increases in spot market prices.
Marine transportation was impacted by poor navigation conditions with a 31% increase in delay days year-over-year.
Strong oil and gas demand boosted distribution and services results sequentially despite continued supply chain constraints.
Kirby
Kirby
Kirby Revenue by Segment
Revenue by Segment
Marine Transportation Revenue
CapyFin.comDistribution and Services Revenue
CapyFin.com Forward Guidance
Kirby anticipates improved results in marine as the year progresses. In distribution and services, demand for products and services is growing, and new orders are being received in manufacturing. Overall, the businesses are expected to deliver improved financial results in the coming quarters.
Positive Outlook
- Favorable market conditions have contributed to Kirby’s strong barge utilization in inland marine.
- Continued growth in customer demand and steady volumes from refinery and petrochemical plants are expected.
- Modest net new barge construction in the industry is anticipated.
- Further improvements in the spot market are expected, with term contracts continuing to reset higher.
- Favorable oilfield fundamentals and steady demand in commercial and industrial are expected to continue throughout 2023.
Challenges Ahead
- Results were materially challenged by bad weather in marine transportation in Q1.
- Supply chain issues and long lead times are expected to persist in the near-term, contributing to some volatility.
- Revenues and operating margins in coastal are expected to be impacted by an approximate doubling of planned shipyard maintenance days.
- Meaningful rate gains in coastal marine remain challenged by underutilized barge capacity across the industry.
- Mindful of challenges related to an economic slowdown and associated headwinds from higher interest rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income