This is a legacy page. Please click here to view the latest version.
Fri 27 Apr 2018, 00:13 GMT

World Fuel Services posts net income - and marine gross profit - of $31.2m


Overall net earnings virtually level with last year; marine division's profit dips 7 percent.


Image credit: World Fuel Services
World Fuel Services Corporation posted a net income of $31.2 million for the first quarter (Q1) of 2018 - achieving almost exactly the same result as last year's $31.3m.

Revenue during the January-March period increased year-on-year (YoY) by $987m, or 12.0 percent, to $9,181.3m, whilst gross profit grew by $12m, or 5.2 percent, to $243.4m.

The company's marine segment generated a gross profit of $31.2m, which was a YoY decrease of 7 percent. This was said to be mainly due to "the continued challenges in the maritime industry and our strategy to reduce business in certain regions where we were not generating satisfactory returns on capital".

The marine division sold 5.8m tonnes of fuel in Q1 - a YoY decline of 1m tonnes, or 14.7 percent.

Marine revenue dipped YoY by $65.8m, or 3.1 percent, to $2,027.7m.

The US firm's other two divisions, aviation and land, generated a gross profit of $110.0m and $102.2m respectively. Aviation's result was a 10 percent YoY improvement, whilst land recorded a growth of 4 percent.

Commenting on the results, Michael Kasbar, chairman and chief executive officer, said: "We are off to a good start in 2018, benefiting from seasonal increases in our land business and solid performance by our aviation and marine segments.

"While we are pleased with our first quarter results, we remain focused on increasing levels of profitability and returns by continuing to sharpen our portfolio and drive greater cost efficiencies."

Ira M. Birns, executive vice president and chief financial officer, commented: "Our continued cost savings initiatives contributed to year-over-year growth in adjusted operating income in all three operating segments in the first quarter.

"We believe that our commitment to a higher standard of operational excellence will allow us to drive further efficiencies in our business model and result in greater operating leverage in the next 12 to 24 months, accelerating EBITDA growth."


MAmmoSS graphic. Mitsubishi Shipbuilding receives order for ammonia fuel handling system  

MAmmoSS system will support shop testing of ammonia marine engines from two licensors.

Neoliner Origin vessel. Kongsberg Maritime to lead EU Horizon project targeting wind-assisted propulsion at scale  

A 15-partner European consortium will use two full-scale vessel demonstrators to validate wind propulsion technology.

Petrobras logo. Petrobras warns of extended MGO and VLSFO supply suspension at Port of Itaqui  

Fuel distributor announces pipeline maintenance shutdowns affecting both MGO and VLSFO supply.

Richard Berkling, PowerCell Group. PowerCell secures SEK 50m marine fuel cell order for two liquid hydrogen cargo ships  

Swedish fuel cell maker wins contract to power two North Sea hydrogen vessels by 2028.

Wärtsilä hydrogen engine. MatH2 consortium launched to tackle hydrogen materials barriers  

New Finnish-led alliance targets materials compatibility challenges holding back hydrogen adoption.

CMA CGM Berenice vessel. CMA CGM takes delivery of fifth methanol dual-fuel boxship in series from Jiangnan Shipyard  

15,000-teu vessel is the penultimate ship in a six-vessel series due for completion in September.

VeriSphere logo. VPS launches VeriSphere Webshop in push to digitise marine fuel services  

Veritas Petroleum Services unveils self-service digital platform giving customers direct access to fuel data tools.

Titus vessel. ExxonMobil and Wallenius Wilhelmsen complete first trial of biofuel blend made from FAME distillation residue  

Vehicle carrier bunkered in Zeebrugge with B30 VLSFO blend.

Chimbusco and Shenergy green methanol agreement signing. 'China’s largest single-order green methanol procurement deal' announced  

Chimbusco and Shenergy seal agreement for 6,000 tonnes of methanol.

Moriond vessel. Exmar takes delivery of third dual-fuel LPG midsize gas carrier in newbuild programme  

Belgian shipping group Exmar takes delivery of the 41,000-cbm LPG carrier Moriond.


↑  Back to Top