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Sep 30, 2023
Kirby Q3 2023 Earnings Report
Kirby's Q3 2023 earnings increased due to strong performance in both segments despite temporary challenges.
Key Takeaways
Kirby Corporation reported a strong third quarter in 2023, with net earnings attributable to Kirby of $63.0 million, or $1.05 per share. Consolidated revenues for the quarter were $764.8 million. Both the marine transportation and distribution and services segments performed well, contributing to the overall increase in earnings.
Third quarter earnings per share increased 62% year-over-year and 11% sequentially.
Inland marine experienced strong market conditions despite the Illinois River closure, with a sequential increase in spot market prices and high-teens operating margins.
Distribution and services operating income improved 49% year-over-year and 11% sequentially.
Kirby repurchased 290,255 shares at an average price of $80.31 for $23.3 million.
Revenue by Segment
Forward Guidance
Kirby expects improved financial results in 2024. While mindful of challenges related to a slowing global economy and higher interest rates, the company remains positive and expects to drive strong cash flow from operations.
Positive Outlook
- Favorable conditions are expected to continue in inland marine, driven by high refinery and petrochemical plant utilization and minimal new barge construction.
- Further improvements in spot market prices are expected in inland marine.
- Term contracts are expected to continue to reset higher in inland marine.
- Steady demand in commercial and industrial and favorable oilfield fundamentals are expected to continue.
- Demand for environmentally friendly pressure pumping and e-frac power generation equipment is expected to remain strong.
Challenges Ahead
- Near-term issues are expected in the fourth quarter related to low water conditions on the Mississippi River.
- Increasing delay days are expected due to normal seasonal weather conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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