Interest in Offshore Partnership
HOUSTON, March 2 /PRNewswire-FirstCall/ -- Kirby Corporation (NYSE: KEX)
("Kirby") announced today that its wholly owned subsidiary, Dixie Offshore
Transportation Company, has purchased from Progress Fuels Corporation ("PFC")
the remaining 65% interest in Dixie Fuels Limited ("Dixie Fuels"), a general
partnership, for $15.6 million in cash. Prior to the purchase, Dixie Fuels,
formed in 1977, was 65% owned by PFC and 35% owned by Kirby. The final
purchase price will be determined based on post-closing working capital
adjustments and drydocking expenditures. Dixie Fuels operates a fleet of four
offshore dry-bulk barge and tugboat units operating under long-term contracts
with Progress Energy Florida, Inc. ("Progress"), an affiliate of PFC, and
Holcim (US) Inc. ("Holcim"). Dixie Fuels primarily transports coal from the
lower Mississippi River to Progress' power generation facility at Crystal
River, Florida. Dixie Fuels' contract with Holcim is a backhaul of limestone
rock from Crystal River, Florida to Holcim's Theodore, Alabama cement
manufacturing plant. Financing of the acquisition was through a combination
of cash and borrowings from Kirby's existing credit facility.
Joe Pyne, Kirby's President and Chief Executive Officer, commented, "Kirby
subsidiaries have served as the managing partner of Dixie Fuels since the
partnership's inception in 1977, accounting for our 35% interest under the
equity method of accounting. For the 2005 year, Dixie Fuels' revenues were
$26 million. The acquisition will not have a material impact on Kirby's
earnings in 2006 due to large scheduled maintenance requirements."
Kirby Corporation, based in Houston, Texas, operates inland tank barges
and towing vessels transporting petrochemicals, black oil products, refined
petroleum products and agricultural chemicals throughout the United States'
inland waterway system. Kirby also operates four ocean-going barge and tug
units transporting dry-bulk commodities in United States coastwise trade.
Through the diesel engine services segment, Kirby provides after-market
service for large medium-speed and high-speed diesel engines and reduction
gears used in marine, power generation and railroad applications.
Statements contained in the press release with respect to the future are
forward-looking statements. These statements reflect management's reasonable
judgement 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 the timing,
magnitude and the number of acquisitions made by Kirby. 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, 2004, filed with the Securities and Exchange Commission.
SOURCE Kirby Corporation
Steve Holcomb of Kirby Corporation, +1-713-435-1135
-0- Mar/02/2006 23:58 GMT
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