Record Q4 Results at WFS, Marine Profits Back to "Peak Levels"

Marine profits back to peak 2008 levels, said Kasbar

World Fuels Services Corp. (WFS) Thursday reported "record" 2014 profitability, including a 39 percent jump in fourth quarter (Q4) profitability for its marine fuels segment.

In Q4, WFS posted gross profit for the marine sector of $60 million, up 21 percent sequentially and 39 percent compared to Q4 in 2013.

The strong Q4 results were aided by increased sales volumes, which were up 11 percent on Q3 2014, and 14 percent year-on-year, to 7.1 million metric tonnes (mt).

Full year sales volumes were down nearly 1 million mt to 25.7 million mt.

"For the full year, our marine segment contributed $206 million in gross profit, an increase of $29 million or 16% from 2013, returning marine gross profit to peak levels achieved back in 2008," said CEO and Chairman, Michael Kasbar in a conference call to investors.

"The sequential increase was principally driven by increased volatility during the quarter as well as some well-publicized competitive dynamics which have provided us with an opportunity to increase market share," he added, alluding to the collapse of OW Bunker in November last year.

Kasbar added that "fuel re-selling activities constituted approximately 90% of WFS's total marine business activity in the fourth quarter which is fairly consistent with the past few quarters."

Last year's net profit for the group came in at $221.7 million which, adjusted for a gain on the sale of a crude oil joint venture, meant a comparable figure of $216.8 million.

In 2013, adjusted net profit was $204.9 million, meaning WFS achieved 5.8 percent year-on-year net profit growth for 2014.

"2014 was a strong year for World Fuel, as we delivered solid financial results while continuing to make strategic investments to grow our diverse intermodal platform of products and services," said Kasbar.

On Thursday's call to investors, Kasbar said the collapse of OW Bunker had positively impacted WFS's results in several ways.