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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.
Kirby
Kirby
Kirby Revenue by Segment
Revenue by Segment
Marine Transportation Revenue
CapyFin.comDistribution and Services Revenue
CapyFin.com 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.
- High levels of shipyard activity are expected in coastal.
- Ongoing supply chain constraints and delays are expected to persist.
- Volatility in commodity prices and rig counts in the oil and gas market.
Revenue & Expenses
Visualization of income flow from segment revenue to net income