World News
Dip in Q3 Bunker Volumes, Marine Profits for World Fuel Services
World Fuel Services Corporation (WFS) [NYSE:INT] Thursday released its 3Q 2016 financials, showing a dip in both bunker sales volumes for the period and associated gross profit for company's marine segment.
For the three months to September 30, 2016, marine fuel sales amounted to 7.8 million metric tonnes (mt), compared to 8.6 million mt for the period in 2015.
The company's marine segment generated gross profit of $37.2 million, down $11.4 million or 23.4 percent year-over-year.
In comments made during a period of prepared statements in its earnings call Thursday, WFS said "growing concerns in the marine sector has tightened our credit appetite, negatively impacting volumes and profitability."
The company's aviation and land segments faired better, which generated gross profit of $111.7 million, an increase of $4.8 million / 4.5 percent year-over-year, and gross profit of $87.8 million, an increase of $16.5 million / 23.2 percent year-over-year, respectively.
Overall World Fuel Services reported third quarter net income of $42.7 million.
"Our aviation segment posted record results in the third quarter driven by seasonally strong core resale operations in North America, Europe and Asia as well as continued strength in government-related fueling activities, illustrating the strength of our diversified portfolio as it served to offset continued weakness in the marine markets," stated Michael J. Kasbar, chairman and chief executive officer of World Fuel Services Corporation.
"As we continue to develop and integrate our broad-based global energy management, fulfillment and payment platforms, our focus on increasing operating efficiency and expanding our value-added service offerings will serve us well as we look to execute on our long-term growth initiatives."
Also Thursday, WFS announced it has successfully amended its credit facility, which has been increased by approximately $500 million to $2.1 billion.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.50 | 2.00 | 778.50 | 8.50 |
| Rotterdam | 602.00 | 0.50 | 748.00 | 6.00 |
| Houston | 624.00 | 5.00 | 792.00 | 3.50 |
| Fujairah | 649.50 | 2.00 | 898.00 | 3.00 |
| Global 20 Ports Average | 662.00 | 2.00 | 855.00 | 1.50 |
| Global 4 Ports Average | 631.00 | 1.00 | 804.00 | 0.50 |
| Global Average Bunker Price | 717.50 | 0.50 | 913.50 | 1.00 |
Popular Now More
-
Apr 24Non-compete clauses have not always been used in a fair and reasonable way in the bunker industry, Maritime Recruitment Company Ltd's Vernon Jayanathan tells Ship & Bunker. -
Apr 25Government investigating after test results altered 'to make the fuel consumption data look better'. -
Apr 26The company is looking for candidates with bunker trading professional certifications and at least six years of experience in a similar role.