Barge operator K-Sea's shares drop on stock float

18 August 2008 19:15  [Source: ICIS news]

HOUSTON (ICIS news)--Shares of barge operator K-Sea Transportation Partners fell on Monday following the firm's announcement that it would issue stock to pay off debt and build new vessels.

The New Jersey-based frim said on Friday it would hold a public offering of 2m additional shares of common stock to pay off debt and fund building of new vessels.

K-Sea operates 73 tank barges, 59 tugboats and 1 tanker for major oil companies, refiners and traders in the US, according to the company.

The NYSE-listed stock closed Friday at $24.97 (€16.98) per share and hit a new 52-week low of $24.20 on Monday before rising to $24.63 in morning trading. It has ranged from $24.20 to $42.98 over the past year.

K-Sea's stock has been hitting new yearly lows since it reported fourth-quarter earnings last week that were substantially less than analysts expected.

On 12 August the firm reported earnings of $6.3m, or 45 cents per share, for the quarter ended 30 June, compared with $3.7m, or 37 cents per share, in the year-ago quarter.

Analysts were expecting a profit of 56 cents per share, according to a poll by Thomson Reuters.

For the full fiscal year, K-Sea earned $25.3m, or $1.95 per share, compared with $15.5m, or $1.55 per share, in the prior-year period.

($1 = €0.68)

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Author: Lane Kelley
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