World News
Analysts: World Fuel Services "Very Well Positioned" for Growth
Market analysts this week have poured praise on World Fuel Services Corp. (WFS) and assessed the firm is "very well positioned to grow" in the fuel and lubricants supply industry, the Miami Herald reports.
WFS's share price has climbed since October last year, with some of that effect attributed to the demise of major rival OW Bunker in early November.
However analyst Jonathan Chappell for investment firm Evercore Partners said the OW Bunker effect may be short lived, rating WFS shares as "hold," even though the company was said to be likely to grow in the market as it is now.
"The stock has just gone from the high $30s to the mid-$50s in a very short period of time," he said, adding "it's a great company, a great balance sheet, great business model, great management team."
"They are very well positioned in the market to continue to grow."
Discussing how WFS positions its business, CEO Michael Kasbar explained that the company aims to keep a broad customer base to offer services as well as fuels and lubricants, adding that risk management is key to its success.
"We operate in this rich crossroads of energy, logistics, transportation and industrial growth," said Kasbar.
"Any type of change is fundamentally good for us, and we thrive on it, whether it's new sources of supply, new regulations, changing prices, geopolitics, anything."
"We're basically one big risk-management company."
OW Bunker collapsed in November, in part due to losses said to have stemmed from failures of risk management.
In February, Kasbar said its marine segment profits were back to "peak levels" in the fourth quarter of 2014.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 553.50 | 0.00 | 673.00 | 0.00 |
| Rotterdam | 514.50 | 0.00 | 651.00 | 0.00 |
| Houston | 545.00 | 0.00 | 671.00 | 0.00 |
| Fujairah | 543.00 | 0.00 | 747.00 | 0.00 |
| Global 20 Ports Average | 574.00 | 0.00 | 748.00 | 0.00 |
| Global 4 Ports Average | 539.00 | 0.00 | 685.50 | 0.00 |
| Global Average Bunker Price | 627.00 | 0.50 | 799.50 | 1.00 |
Popular Now More
-
Dec 24The 9,500 DWT heavy lift vessel Ursa Major sustained an engine room explosion in the Strait of Gibraltar at about 12:30 PM local time on Monday. -
Dec 23Since its launch in late June, the company's first 100 deliveries have primarily focused on LSMGO supply by barge to container ships and tankers in New York Harbor, CEO John Barbarise tells Ship & Bunker. -
Dec 23The company carried out worldwide marine fuel trading from offices in Singapore.