Joe PyneOkay, thank you Steve. Late yesterday, we announced record setting net earnings for the 2011 fourth quarter of a dollar per share reflecting a 69% improvement over the $0.59 per share reported for the 2010 fourth quarter. For the year, we announced record earnings of $3.33 per share, a 55% increase compared to $2.15 per share for 2010. Our record fourth quarter and year earnings were the result of strong demand for inland tank barge service, modest earnings contribution from our coastal marine tank barge business, strong earnings from our land-based diesel engine service business and improved earnings from our heritage marine diesel engine service business. I will speak briefly about K-Sea’s results, our coastal tank barge operation. And I am going to turn the call over to Greg Binion who will update you on our inland marine transportation and diesel engine service markets. With respect to K-Sea, K-Sea’s operating results were as expected for both fourth quarter and the year. Fourth quarter is generally a more difficult quarter for coastal business due to some seasonality in the cargos, we carry principally the refined products and either the closure or a reduction in demand in Alaska and on the Great Lakes, as poor weather conditions affect those operations. In addition, the fourth quarter included a $1,250,000 severance charge associated with integrating K-Sea’s back office into Kirby’s. For the fourth quarter, K-Sea’s equipment utilization was approximately 75% to 80% with respect to pricing. Contracts in this market that renewed during the fourth quarter were basically flat and spot contracts improved in the low-to-mid single digit range year-over-year. During the fourth quarter, approximately 60% of K-Sea’s revenues were under term contract and 40% were in the spot market. Time charters in this coastal business represent approximately 90% of the revenues under term contracts for the quarter. With refined product demand tying K-Sea more to the US economy than our inland operation, K-Sea’s equipment utilization levels and pricing environment remains below our inland transportation business.
As we continue to fine tune K-Sea’s cost structure, the US economy improves and industry capacity is removed from service, coastwise utilization rates should improve as well as K-Sea’s profitability. I will come back at the end of this call and talk about the full and first quarter outlook for 2012 and let me turn the call now over to Greg.Greg Binion Thank you, Joe and good morning to all. During the fourth quarter, our inland marine transportation sector continued its strong performance with utilization rates and favorable pricing trends. Low price natural gas continue to positively impact the global competitiveness of the US petrochemical industry. The feedstock advantage provided continued strong volumes of domestically produced petrochemicals for domestic consumption and exportation. Kirby’s black oil fleet continues to see strong demand driven by stable refinery output and the movement of crude from the Midwest of the Gulf Coast and also out of South Texas. Our refined products demand remain positive benefitting from the Midwest to Gulf Coast movements of ethanol and our agricultural demand was also brisk benefitting both from domestic lead produced and imported ag products. Consequently during the 2011 fourth quarter Kirby’s petrochemical and black oil inland fleets achieved utilization rates in the low to mid 90% range. Revenue from our long-term contracts that is one year in duration or longer remained at 75% and the mix of time charter and our freight business continued at about 55% and 45% respectively Read the rest of this transcript for free on seekingalpha.com