A strong month for shipyards helped lead the WorkBoat Composite Index to a 96-point gain in February. The strong 5.5% gain helped offset January’s weak start to the year when the Index lost 47 points. For the month, winners topped losers by a 4-1 ratio. The Index also topped the Dow and S&P in February.
The Philadelphia Oil Service Sector Index recouped almost all of its 2014 losses last month, erasing most of January’s 6% loss.
Trinity Industries was up over 23% in February. The Dallas-based manufacturer of rail cars and barges has been benefitting from the pickup in petroleum transportation.
“The energy renaissance in the U.S. and Canada has created strong demand for many of our storage and transportation products,” Timothy R. Wallace, the company’s chief executive said during February’s earnings call with analysts. “During the past few years, our customers have ordered railcars and barges to transport crude oil, as well as storage tanks to hold various forms of gas products. We anticipate there will be demand for storage and transportation of products supporting the production of chemicals and petrochemicals. Our companies are in a strong position to serve this demand.”
Wallace discussed the strong performance from its barge division. “I’m pleased with the way our Inland Barge Group maintained consistent margins on a lower revenue run rate during the fourth quarter. The group illustrated its operational flexibility in 2013 by successfully converting a portion of its manufacturing capacity from dry cargo barges to tank barges. This conversion was a significant accomplishment.”
Trinity closed at $71.81 on Feb. 28, just shy of its 52-week high.
— David Krapf
