Thu 29 Oct 2015 14:25

World Fuel Services sells 8.6 million tonnes in Q3


Q3 bunker sales were up 2.1 million tonnes year-on-year, reports marine, aviation and land fuel specialist.



World Fuel Services Corporation (WFS) reports that sales of marine fuel increased by 2.1 million tonnes, or 33 percent, during the third quarter compared to last year.

Bunker sales were 8.6 million tonnes during the third quarter, up from 6.5 million tonnes the previous year.

Details of the sales performance of the company's marine segment were revealed during the latest earnings call, held on October 28.

According to CFO Ira Birns [pictured], broker business activity for the quarter was approximately 12 percent of total marine volume as compared to 8 percent during the same period last year.

The company's marine segment generated a gross profit of $48.6 million during the third quarter - a decrease of $0.8 million or 2 percent year-on-year.

Birns explained that margins declined due to lower market prices and a reduction in offshore activity, which was offset by a 33 percent year-on-year increase in volume.

"Based upon activity and volatility levels quarter-to-date, we expect our marine business to deliver a similar result in the fourth quarter," said Birns.

During the earnings call, Michael Kasbar, chairman and CEO, said: "We had an annual run rate of more than 34 million metric tonnes, we continue to maintain the largest independent market share in the industry. As we mentioned on last quarter's call, an uptick in volatility during the beginning of the third quarter contributed to gains in our derivative sales business."

"Volatility clearly increased a bit in the third quarter, especially in the early part of the quarter, which helped us stabilize margins and improve the profit contribution," Birns added.


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