WFS: Record Q1 Bunker Volumes "Totally Unrelated" to OW Bunker Collapse

Michael Kasbar, chairman and chief executive officer of WFS, said the record Q1 volume was "totally unrelated" to OW Bunker's collapse. 

World Fuel Services Corp. (WFS) reports that in the first quarter of 2015 it achieved a record marine segment sales volume of almost 7.7 million metric tonnes, a jump of 7 percent compared to the previous quarter and up 27 percent year-over-year.

In comments that came during last week's earnings call, Michael Kasbar, chairman and chief executive officer of WFS, remarked that although volume activity was "given a little bit of a pop" by the company helping suppliers and customers following the collapse of major supplier OW Bunker, he said the growth was "totally unrelated" to the bunker player's exit form the market.

"The OW impact I think is then pretty drastically exaggerated to a certain extent," said Kasbar, who also noted WFS also had a "significantly strong quarter in the fourth quarter."

The firm's marine segment posted a gross profit of $54-million in Q1 2015, a decrease of $6 million or 9 percent sequentially but an increase of $6 million or 13 percent year-over-year.

After downplaying OW's impact on volume during the question and answer period, Kasbar was asked if customers were wanting to partner with WFS due to its strong balance sheet, oil's volatility and disruptions amongst competitors.

Kasbar replied, "We certainly benefited from that and from a supply perspective….. suppliers want to buy and sell fuel oil and energy products and whether it's the marine side, the land side, aviation natural gas power, we represent that strong counter party. But, events like OW certainly underscore that, and it's a great opportunity for us to promote that aspect of our company."

The Q1 results come on the heels of market analysts praising WFS as being "very well positioned to grow" in the fuel and lubricants supply industry.