By Sarah Scully
Kirby Corp., a Houston-based barge shipping company, is growing its business on shore. Since hydraulic fracturing took off, Kirby has found a growing market for its diesel engine services division.
The engines power hydraulic fracturing pumps, and demand has been rising in recent years.
In third quarter earnings released Wednesday, the company reported $76.7 million in net earnings, or $1.34 per share, compared to $69.1, or $1.21 per share, in the same period last year. Revenue was $680 million, including $232 million in diesel engine services, a figure that doubled from the third quarter 2013.
“In our land-based diesel engine services market, we continued to see a pickup in demand for parts and services across our portfolio of oilfield equipment, including the manufacturing and remanufacturing of pressure pumping units,” said CEO David Grzebinski.
Kirby is the largest tank barge operator in U.S. inland and coastal waters, carrying primarily oil and petroleum products. Its diesel engine services business provides assembly, maintenance and remanufacturing of diesel engines that power oil and natural gas pumps, on and off shore.
In an earnings call Thursday morning, Grzebinski said, “we’ve seen strong demand and this oil price volatility really hasn’t impacted anything.” He noted that many shale operations break even at prices between $60 and $70 per barrel. “If it gets below $60, that’s a different story,” he said.
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