Wed 27 May 2009, 08:01 GMT

WFS eyes new acquisition opportunities - source


CEO says the company is looking at "opportunities to buy" in the marine, aviation and land fuel segments.



The Chief Executive of US-based fuels specialist World Fuel Services (WFS) is reported to have said that the company will continue to expand through acquisitions and that it is currently looking at new investment opportunities in the marine, aviation and land fuel segments.

In an interview with Dow Jones, WFS CEO Paul H. Stebbins [pictured] is quoted as saying "We certainly believe that in today's market, there are opportunities to buy."

The news follows the company's recent acquisition of UK-based marine and land based fuels provider Henty Oil last month.

Henty, based in Liverpool, with 2008 marine volume of over 250,000 metric tons, services the Irish Sea ports of Liverpool, Holyhead and Heysham. Henty's land segment, with 2008 volume of approximately 10 million gallons, provides fuel and gas oil to a broad range of customers throughout the United Kingdom.

Last month WFS also completed the acquisition of TGS Petroleum, Inc., a Chicago-based firm with 2008 volume of over 100 million gallons, which distributes gasoline and diesel fuel under long-term contracts to over 160 retail petroleum operators in the US.

Commenting on the bunker fuel segment, Stebbins is reported to have said that the fear of counterparty risks has made suppliers and buyers of marine fuel more "focused on who they are putting their business through than ever before," and that the company's small drop in sales volumes against industry expectations of between 20%-25% would indicate that WFS has increased its market share as a consequence.

"Counterparty risk is going to be an absolutely critical part of business strategy in the future. The days of easy liquidity, easy credit, easy leverage are gone," added Stebbins.

In regard to capital, Stebbins said WFS was currently sitting on around $400 million in cash and approximately $950 million in liquidity.

The company was reported earlier this month to have already granted between GBP30 million ($45 million) and GBP 40 million ($60 million) to Henty Oil in order to develop the business further.

"We will be looking to create small oil terminals around the UK, especially in Scotland and Ireland,” said Company President Paul Henty.


Ardmore Shipping logo. Ardmore Shipping posts 14% fleet emissions reduction in 2025 sustainability report  

Ardmore Shipping’s annual sustainability report highlights emissions cuts, safety gains and governance rankings across its tanker fleet.

Peter Keller, SEA-LNG. SEA-LNG mid-year review points to continued growth across methane pathway as coalition marks tenth anniversary  

LNG orders, bunkering volumes and biomethane production all rise as SEA-LNG gains IMO consultative status.

Heinz vessel. Econowind receives DNV type approval for VentoFoil 3-Series wind propulsion wing  

DNV certification set to streamline integration of VentoFoils on classed vessels worldwide.

Wärtsilä ammonia engine Wärtsilä to supply ammonia engines and propulsion systems for two Navigator Amon gas carriers  

Mid-size LPG/liquid ammonia carriers will be equipped with Wärtsilä’s ammonia-fuelled auxiliary engines.

Phil Sharp and Toon Muhlheim. Genevos and Koedood Marine Group sign LOI to explore hydrogen fuel cell deployment  

Two companies to collaborate on the use of hydrogen fuel cell systems for inland and coastal maritime transport.

Samskip SeaShuttle vessel render. Samskip brings SeaShuttle project into European HyShip initiative to develop liquid hydrogen infrastructure  

Two hydrogen-powered container vessels will operate between Rotterdam and Oslo from 2027.

Antwerpen vessel. Korea Register and HD Hyundai team up to advance ammonia-fuel shipping in South Korea  

Two organisations are cooperating on eco-friendliness verification for ammonia dual-fuel vessels.

Fabio Cococcetta, WinGD. Green ammonia could become the first commercially viable zero-emission marine fuel, WinGD study suggests  

Joint report by WinGD and Envision Energy sets out the economic case for green ammonia.

Rasul Shirinov, Oilmar. Oilmar appoints junior marine fuels trader at Dubai trading desk  

UAE-headquartered bunker firm hires Rasul Shirinov, with a background in the agricultural sector.

Antonia Maersk vessel. Maersk bunkers large dual-fuel vessel with 100% ethanol in Barcelona  

Ocean carrier scales up ethanol bunkering in bid to broaden its low-emission fuel strategy.