Post-hurricanes demand increases Kirby revenues by 25 per cent

Strong demand after the devastating US hurricanes have helped increase revenues for one of North America’s largest towing companies, Kirby Corp, by 25 per cent since July.

Kirby reported revenues of US$541.3 million between July and September this year, compared with US$434.7 million in Q3 2016.

Kirby president and chief executive David Grzebinski said there was a rebound in volume demand after the hurricanes that have devastated parts of southern US states this year.

“Inland utilisation increased following Hurricane Harvey, as pent-up demand and a stronger pricing environment for our customers’ products led to more liquid barge moves,” he said. 

“Although this increase in utilisation may be temporary, it has remained firm into Q4.” 

He also said there was strength in its distribution and services segment, including Stewart & Stevenson, which Kirby acquired earlier this year.

Kirby’s revenues from the marine transportation division were US$318.8 million and operating income was US$36 million in Q3 2017. The inland barge utilisation ranged from 85 per cent to 90 per cent.