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.


Seatransport 73m SLV Lloyd’s Register grants approval for hybrid nuclear power design for amphibious vessels  

Classification society approves Seatransport’s concept integrating micro modular reactors with diesel-electric systems.

Everllence ME-LGIE engine. Everllence and Vale partner on ethanol-powered marine engine development  

Brazilian mining company to develop dual-fuel ethanol engines based on ME-LGI platform.

India flag. Emvolon highlights biomethanol as a solution to unlock India’s biogas potential  

Company says distributed biogas-to-biomethanol production could bridge rural feedstock with maritime fuel demand.

Grande Svezia vessel. Grimaldi's Grande Svezia makes inaugural Le Havre call with ammonia-ready design  

Second of 10 new-generation PCTCs features 5 MWh battery system and cold ironing capability.

Cable lay vessel (CLV) render. Kongsberg Maritime to supply integrated systems for LS Marine Solution cable lay vessel  

Norwegian technology provider wins contract for ultra-large vessel being built at Tersan Shipyard in Türkiye.

Maersk Finisterre vessel. Synergy Marine takes on management of methanol dual-fuel container vessel  

The 5,915-teu Maersk Finisterre joins Synergy's fleet under technical management from Synergy Pacific.

Pristine ABP Port Office. Verde Marine Energy appoints Steve Taylor as UK director  

Taylor will be based on the River Humber, working with Vertom Group businesses.

Ammonia Fuel Supply System (AFSS). Mitsubishi Shipbuilding delivers first ammonia fuel supply systems for marine engines  

Systems shipped to Japan Engine Corporation for integration with an ammonia-fuelled marine engine.

Power2X and HyCC logos. Power2X acquires HyCC to expand green hydrogen portfolio in the Netherlands and Germany  

Deal consolidates clean molecules sector as projects transition from development to large-scale delivery phase.

Person signing a document. RFOcean signs binding e-methanol supply deal with ETFuels from 2030  

European shipping company secures fixed-price green fuel ahead of escalating EU maritime emissions penalties.





 Recommended