K-Sea Transportation pays big dividend, reports earnings

http://ir.k-sea.com/

K-Sea Transportation KSP has announced their results for the 4th quarter and the continued payout of the 77¢ quarterly distribution. Revenues and earnings continue to fall for this U.S. based barge shipper of petroleum products.  Cash for distribution was only 85% of the amount to be paid out this quarter. For the entire year K-Sea had a 92% cash flow coverage of the distribution.

Investors holding this stock for the income should be nervous. Company management contends they will continue the distribution rate through the end of 2009. We shall see.

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