K-Sea Transportation Partners, L.P.
K-Sea Transportation Partners, L.P. is
the newest publicly traded partnership to enter the market, although its
predecessor, K-Sea Transportation LLC, has been in business since 1959. The partnership was formed in July 2003,
and on January 14, 2004, the predecessor contributed substantially all its
assets and liabilities to K-Sea Transportation Partners in connection with the
initial public offering of 3.6 million common partnership units. An additional 665,000 units were sold on
January 21.
Based in Staten Island, New York,
K-Sea Transportation Partners is a leading provider of refined petroleum
product marine transportation, distribution, and logistics services in the
northeastern United States. It owns and
operates a fleet of 36 tank barges, 3 tankers, and 19 tugboats with a capacity
of over two million barrels. K-Sea
believes that it has the third largest ocean-going tank barge fleet in the
United States as measured by barrel-carrying capacity.
K-Sea earns revenue by charging
customers for the transportation and distribution of their products on its tank
vessels and tugboats. Customers include
major oil companies, oil traders, and refiners. Demand for K-Sea’s services is driven by demand for refined
petroleum products in the East Coast and Gulf Coast regions.
Services
are provided under four basic contractual relationships: time charters, contracts to charter a
vessel for a fixed time, generally a year or more, at a set daily rate; contracts
of affreightment, contracts to provide transportation over a specific
trade, generally for one or more years, at a negotiated per-barrel rate; voyage
charters, charters for shorter intervals, usually one round trip, made on a
current market rate or advance contractual basis; and bareboat charters,
longer-term agreements in which a customer operates a K-Sea vessel using its
own operating staff.
K-Sea’s
revenues, operating income, and net income are based on the revenue from
voyages and bareboat charters offset by voyage expenses—those unique to each
voyage, such as fuel costs, port charges, and canal tolls-- and vessel
operating expenses such as crew salaries, maintenance, and insurance. As with other businesses, general and
administrative expenses and depreciation and amortization of assets are also
factored in.
K-Sea trades on the New York Stock
Exchange under the symbol KSP. For
additional information, contact
John J. Nicola
Chief Financial Officer
K-Sea Transportation Partners, L.P.
3245 Richmond Terrace
Staten Island, NY 10303
718-720-9306 (phone), 718-815-6276
(fax)
or
visit K-Sea’s website at http://www.k-sea.com.
(in thousands, except per
unit data)
|
|
Three months ending March 31, |
Nine Months Ending March 31, |
||
|
|
2004 |
2003 |
2004 |
2003 |
|
Market capital(1) |
$102,460 |
---- |
$102,460 |
---- |
|
Total revenues |
$26,028 |
$26,049 |
$70,530 |
$67,411 |
|
Operating income |
$
4,809 |
$
6,302 |
$10,701 |
$11,155 |
|
Net income |
$18,355(2) |
$
3,890 |
$19,865(2) |
$
4,178 |
|
Net income per unit |
$2.13 |
---- |
$2.13 |
---- |
|
Distributions |
$0.43(3) |
---- |
$0.43(3) |
---- |
|
High price |
$30.00 |
---- |
$30.00 |
---- |
|
Low price |
$26.55 |
---- |
$26.55 |
---- |
|
(1) As of May 7, 2004. (2) Includes a noncash
tax benefit of $17,561 solely attributable to reduction in deferred taxes
resulting from change in income tax status of the predecessor’s assets and
liabilities that were transferred to the partnership on January 14, 2004 in
connection with the initial public offering. (3) Declared April 28, 2004 and payable May 14,
2004; prorated from January 14. |
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