Statements contained in this presentation with respect to the future are forward-looking statements. These statements reflect management's reasonable judgment with respect to future events. Forward- looking statements involve risks and uncertainties. Actual results could differ materially from those anticipated as a result of various factors, including cyclical or other downturns in demand, significant pricing competition, unanticipated additions to industry capacity, changes in the Jones Act or in U.S. maritime policy and practice, fuel costs, interest rates, weather conditions and timing, magnitude and number of acquisitions made by Kirby, and the impact of the COVID-19 pandemic and the related response of governments on global and regional market conditions. Forward-looking statements are based on currently available information and Kirby assumes no obligation to update any such statements. A list of additional risk factors can be found in Kirby's annual report on Form 10-K for the year ended December 31, 2021.
Kirby reports its financial results in accordance with generally accepted accounting principles (GAAP). However, Kirby believes that certain Non-GAAP financial measures are useful in managing Kirby's businesses and evaluating Kirby's performance. This presentation contains Non-GAAP financial measures including: Adjusted EBITDA; operating income, excluding one-time items; earnings before taxes on income, excluding one-time items; net earnings attributable to Kirby, excluding one-time items; and diluted earnings per share, excluding one-time items, and free cash flow. Please see the Appendix for a reconciliation of GAAP to Non-GAAP financial measures.
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Topics for Discussion
Oil prices have been under some moderate pressure lately
Long term demand trends remain favorable
U.S. petrochemical and refineries in very strong position globally
Leading U.S. Shale production has cemented USGC's cost advantage in global markets
EV impact on fuels is more than offset by continued growth in other areas
Size and speed of shift to electrification
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Imbalances in Global Oil Market Create Opportunities for Kirby
"Revenge of the old economy"
Energy is outperforming in 2022
Why? Favorable market fundamentals:
Underinvestment thesis
Ukraine/Russia War; EU ban on Russian oil
Low inventories
OPEC+ cuts
Additional supply and demand uncertainties:
Recessionary fears
Inflation pressures
Historic SPR releases
Incremental growth from U.S. shale; Capital discipline is the new normal
China COVID lockdowns (eventually will end...)
Energy Transition
Favorable market fundamentals → Improved pricing
Potential for triple digit oil prices in 2023
Continued high refinery and chemical plant utilization levels
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U.S. Well-Positioned in Global Petrochemical Arena
MARINE TRANSPORTATION and DISTRIBUTION & SERVICES
U.S. Feedstock Advantage
EIA U.S. Production ForecastGlobal Chemical Demand
MMBpd
Quadrillion Btu
DISTRIBUTION & SERVICES
MARINE TRANSPORTATION
INDUSTRIAL
EQUIPMENT
OIL FIELD
PETROCHEMICALS
REFINERS
DOMESTIC
EXPORT
Source: Exxon: Outlook for Energy, EIA
Globally Competitive Products
Onshoring only multiplies this impact
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Kirby Corporation published this content on 01 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 December 2022 14:13:07 UTC.
Kirby Corporation is a domestic tank barge operator. The Company transports bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, and coastwise along all three United States coasts. The Company, through its marine transportation segment (KMT), transports petrochemicals, black oil, refined petroleum products, and agricultural chemicals by tank barge. It also participates in the transportation of dry-bulk commodities in the United States coastwise trade. Through its distribution and services segment (KDS), it sells after-market service and genuine replacement parts for engines, transmissions, reduction gears and power generation equipment used in oil and gas and commercial and industrial applications. It also rents a variety of power generation and industrial equipment, manufactures and remanufactures oilfield service equipment, including pressure pumping units, and manufactures electric power generation equipment for oilfield service customers.