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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."


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