Americas News
World Fuel Services 2015 Bunker Sales Volume Up 27%
World Fuel Services Thursday reported its 2015 full year bunker sales were up almost 27 percent year-on-year, but bottom line earnings were hit by tough operating conditions.
Total sales for the year ended December 31, 2015 were 32.6 million metric tonnes (mt), compared to 25.7 million mt for the year ended December 31, 2014.
Despite the improved performance, and as Michael J. Kasbar, chairman and chief executive officer noted, came in a "year in which bunker prices plummeted by nearly 50 percent," gross profit for the company's marine segment fell 8 percent year-over-year to $189.6 million, a decrease of $16.0 million over 2014.
For the company as a whole, full year net income for 2015 came in at $186.9 million, from revenues of $30,379.7 million, compared to a 2014 performance of $221.1 million and $43,386.4 million in net income and revenues respectively.
"Many sectors of the shipping and offshore markets are struggling with lower freight rates and cancellations of projects, a byproduct of the steep decline in commodity and energy prices,", Kasbar noted during the company earnings call.
"While no one is immune from these powerful macroeconomic forces, World Fuel's business model and financial strength have afforded us the opportunity to demonstrate our continued commitment to the shipping community as evidenced by the 27 percent year-over-year volume growth."
World Fuel Services' fourth quarter for marine was noted as having particularly unusual year-on-year contrast due to the 2014 collapse of OW Bunker.
"[In the fourth quarter] the marine segment generated gross profit of $45 million, down $14 million or 24 percent year over year," said Kasbar.
"The main driver of the variance was the extraordinary market conditions in the fourth quarter of last year partially associated with the bankruptcy of a large competitor, material volatility, and a sharp spike in demand."
In April of 2015 Ship & Bunker reported that analyst opinion that World Fuel Services was "well positioned for growth."
