Mon 31 Jul 2017 10:23

World Fuel Services' share price plummets 13.2 percent


New 52-week trading range following Friday's slump.



World Fuel Services' stock value took a hammering on Friday following the announcement of the company's results after the close of trading the previous day.

The US firm's share price on the New York Stock Exchange decreased $5.22, or 13.2 percent, to end the week at $34.32.

At the close of trading on Friday, World Fuel Services' market capitalization was $2.37 billion, with a price-earnings (PE) ratio of 22.61 for the trailing twelve months (TTM).

The new 52-week trading range following Friday's slump is now $34.25 - $47.49.

As previously reported, H1 net income decreased by $20.2 million, or 24.8 percent, to $61.4 million in the company's latest financial results, while Q2 net income was $30.0 million - the same as the figure achieved during the corresponding period last year.

Marine gross profit in Q2, meanwhile, was lower by $6.8 million, or 17 percent, at $32.9 million. H1 gross profit fell $12.2 million, or 15.5 percent, to $66.6 million.

Explaining the reason for the marine gross profit decline, Michael Kasbar, chairman and chief executive officer, said it was principally driven by reduced volume in Asia and a further decline in profits from the sale of price risk management products.

"We do not anticipate a meaningful improvement in the macroeconomic or low fuel price environment any time soon, therefore we are not expecting any material improvement in marine results over the balance of the year," Ira Birns, executive vice president and chief financial officer, remarked.


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