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K-Sea Transportation Partners L.P. has announced a rise in net income for the fourth fiscal quarter and year ended 30th June 2008 due to higher voyage and charter revenue.

Net income for the fourth quarter increased by 68 percent to $6.4 million, or $0.45 per fully diluted limited partner unit, from $3.8 million, or $0.37 per unit, in the same period a year ago.

Revenue jumped by 50 percent to $90.1 million, from $60 million in the year-ago quarter.

Voyage revenue jumped to $85.7 million, from $57.4 million in the prior-year quarter. Sales from charter contracts and other items increased to $4.4 million, from $2.6 million in the fiscal fourth quarter of 2007.

Analysts were expecting a profit of 56 cents per share on revenue of $83.3 million, according to a poll by Thomson Reuters.

For the full fiscal year, net income was $25.7 million, or $1.95 per fully diluted limited partner unit, compared to net income of $15.8 million, or $1.55 per fully diluted limited partner unit, for the year ended June 30th 2007.

Revenue leaped to $326.3 million from $226.6 million in 2007.

Operating income for the fourth quarter of 2008 was $11.8 million, compared to $7.8 million for the three months ended June 30th 2007. Operating income for 2008 was $45.6 million, compared to $30.7 million for the previous fiscal year.

Speaking about the company's financial results, President and CEO Timothy J. Casey said "Despite some weakness in demand in certain local markets, overall vessel utilization remains solid, primarily due to our significant proportion of long-term charter contracts. These contracts have an average remaining duration of approximately 2.5 years. Our fleetwide vessel utilization was 85% for the fourth quarter and 84% for the full year."

In reference to the company's vessel expansion programme, Casey said "During the fourth quarter of fiscal 2008, we took delivery of a new 80,000 barrel tank barge, which immediately began work under a three-year contract for a major customer on the west coast. We have eight additional units under construction, two of which are expected to be delivered by November of this year and which are also under contract with customers.

"In June 2008, we acquired eight tugboats from Roehrig Maritime for approximately $41.5 million in cash. These tugboats will initially reduce our outside towing costs, and will ultimately ensure that we have sufficient tugboats to power our remaining new barges when they are delivered during calendar years 2009 and 2010."