Americas News
WFS Shares Dip Following Lac-Megantic Train Explosion
The stock price of World Fuel Services [NYSE:INT] (WFS) fell Tuesday after it acknowledged the train involved in Saturday's deadly explosion in Quebec, Canada was carrying oil sold by one of its units, Reuters reports.
"The railcars involved in the incident were carrying crude oil sold by one of our subsidiary companies and destined for Irving Oil in Saint John, New Brunswick," WFS said in a statement.
The runaway freight train carrying crude oil derailed and exploded in Lac-Megantic, Quebec early Saturday morning, with at least 15 people killed and as many as 50 still missing, according to the news site Canada.com.
After trading at more than $41 per share early Monday, the stock hit a low of $37.37 Tuesday morning but rose later in the day to close at $38.82.
This morning the price further recovered and was trading at over $39.
WFS said the drop in its stock on Monday happened before the company's connection to the incident was clear.
"I don't know that World Fuel's name was associated with the Quebec incident before the market closed yesterday," Jason Bewley, WFS vice president of investor relations, was quoted as saying.
"I don't know how that connection could have been made."
WFS does not typically handle the transportation of oil directly, and Bewley was said to have declined to comment on whether WFS had leased the railcars involved in the crash.
The train was carrying oil from the Bakken shale field in the U.S. state of North Dakota to an Irving Oil refinery in New Brunswick, Canada.
WFS has a joint venture with Dakota Plains Holdings, which owns the Bakken rail-loading facilities where the train was filled.
Ship & Bunker reported in May that WFS is the fastest growing company in the Fortune 500, outpacing technology giant Apple Inc.
