Count Kirby as the latest company kicking the tyres on US offshore wind.
According to Jefferies analyst Randy Giveans, the Houston barge owner said during a series of client meetings that the country's burgeoning offshore wind industry could be a target for expansion.
"Management identified opportunities in the offshore wind turbine industry, including installation vessel equipment as well as for support and maintenance," Giveans said in a note published on Tuesday.
"Kirby said there were opportunities to partner with international offshore wind players and that getting longer contract coverage would be key to reduce residual risk."
Giveans reiterated his hold rating with a price target of $58.
With President Joe Biden targeting 30 gigawatts of offshore wind production by 2030 — potentially enough to power 10m homes — there has been a push by US companies to join with partners abroad in an effort to comply with the Jones Act while bringing on board foreign expertise.
Already, Crowley Marine Services has joined with Danish shipowner Esvagt to own and operate US-flagged special operations vessels (SOVs) and Seattle-based Foss Maritime is working with DEME Offshore US on a wind project offshore Massachusetts.
That project will see Foss barges supply a foreign-flagged DEME wind turbine installation vessel (WTIV) with parts.
Experts have said the US will need between 18 and 30 SOVs and between six and eight WTIVs vessels to meet Biden's goal.
Already, Virginia's Dominion Energy has a Jones Act complaint WTIV under construction at Kepel AmFELS shipyard in Texas for $450m, while Scorpio Group-backed Eneti intends to construct one of their own.
Kirby's outlook
Giveans echoed Kirby's long-held take that the rest of 2021 would show improvement as oil demand comes back with Covid-19 winding down in the US.
He said the company believes its inland barge business will tick up as international shipments rise, requiring transportation to tank farms, though it will take a year or more before higher rates are fully reflected.
For its coastal barges, Giveans said Kirby believes the business will remain near breakeven levels.
In April, alongside its first quarter earnings, Kirby said the second three month period in 2021 would see the company return to profitability.
For the first three months of the year, Kirby posted a $3.4m loss.
