Fri 28 Apr 2017, 07:08 GMT

World Fuel Services posts drop in Q1 net income


Marine segment records 39% rise in revenue and 27.2% decline in income.



World Fuel Services Corporation has reported a drop in first-quarter net income of $20.5 million, or 39.6 percent, as income from marine operations fell by 27.2 percent year-on-year.

Net income for the first three months of this year was $31.3 million, compared to 51.8 million during the corresponding period last year.

Excluding the impact of certain one-time items, adjusted first quarter net income was $34.6 million, or $0.50 adjusted diluted earnings per share. In the first quarter of 2016, net income as adjusted for one-time items was $53.0 million, or $0.76 adjusted diluted earnings per share.

Non-GAAP net income and diluted earnings per share for the first quarter of 2017, excluding share-based compensation, amortization of acquired intangible assets and other one-time items were $44.5 million and $0.64, respectively, compared to $62.5 million and $0.90 in 2016.

Revenue rose by $3.0 billion, or 57.9 percent, to $8.194 billion, up from $5.191 billion during the corresponding period last year. Gross profit was $231.4 million compared to $221.5 million a year ago.

Marine

In total, 1.804 billion gallons, or 6.8 million tonnes, was sold by the marine division during the first quarter, which was a decline of 219.3 million gallons (approx. 800,000 tonnes), or 10.8 percent, compared to last year's figure of 2.023 billion gallons (7.66 million tonnes).

Despite the fall in sales volume, marine segment revenue rose by $817 million, or 39 percent, to $2.094 billion, up from $1.277 billion a year ago.

Marine gross profit, meanwhile, fell by $5.5 million, or 14.2 percent, to $33.6 million.

Income from marine operations was $8.3 million - a decline of $3.1 million, or 27.2 percent.

In a statement, Michael J. Kasbar, chairman and chief executive officer of World Fuel Services, said that during the first quarter the company was "focused on integrating and streamlining overall operations in order to reduce operating costs and gain identified efficiencies".

"We remain focused on executing our strategy of building a ubiquitous global energy management, fulfilment and payments business, while driving improved levels of profitability as the year progresses".

"We generated $137 million of cash flow from operations, further strengthening our balance sheet, increasing the total cash generated over the past five years to $1.3 billion," remarked Ira M. Birns, executive vice president and chief financial officer.


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