Kirby Corporation (NYSE:KEX) Q3 2023 Earnings Call Transcript

Greg Wasikowski: Understood. Okay. And then can you talk a little bit more about your power generation fleet in Q3 and Q4 so far. I’m just curious how demand compared to last year relative to the severity and the frequency of storms of last year versus this year? Maybe remind us operationally, do customers essentially have standing annual rental agreements regardless of what the storm activity really is? Or would increased storm activity drive demand higher real time within the quarter?

David Grzebinski: Yes. It’s usually a — every customer is a little different, Greg. It’s usually a standby fee during hurricane season. And then if we deploy, the rates go up a lot. It was a mild hurricane season this year, thank goodness because that impacts our Marine business. But we kept pretty busy with the rental fee because everybody has gotten smart about putting stuff on standby and paying us for it. But as we exit the hurricane season, that tapers off a bit, as you would expect. I would just tell you that the general theme is this. Every company knows they need power 24/7, and they’ve gotten smarter and smarter and smarter about having backup power options. We do also sell backup power all over the place. We sell backup power generation equipment to data centers.

We sell it to banks and financial institutions. We sell it to hospitals. And that’s part of what’s helping KDS do better is our Power Generation business and manufacturing or assembling that kind of equipment and delivering it to institutions that really don’t want to take a chance with not having power.

Greg Wasikowski: Yes. Got it. Okay. I hope you’re doing well with your [indiscernible].

David Grzebinski: Well, you know the answer to that question. But at least it’s another Texas team that’s in, yes.

Greg Wasikowski: That’s right. That’s right.

Operator: [Operator Instructions]. As there is no further questions, this concludes our question-and-answer session. I would now like to turn the conference back over to Mr. Kurt Niemietz for any closing remarks.

Kurt Niemietz: Thank you, Corey, and thank you, everyone, for joining us on the call today. If there’s any follow-up questions, please reach out to me any time today.

Operator: Thank you. The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.