World Kinect Sees Q1 Bunker Sales Hit Lowest Level Since 2014

World Kinect's marine profit margins improved in Q1 2025, but were lower compared to last year. Image Credit: Ship & Bunker / Data Credit: World Kinect

Bunker volumes at World Kinect – the world's second-largest bunker supplier, also known as World Fuel Services – have reached their lowest level since at least 2014.

World Kinect sold 3.72 million mt of bunker fuel in Q1 2025, down by 14% on the year and by 9.8% from the previous Q4 2024.

The firm saw income from marine operations of $14.8 million in Q1 2025, it said in an earnings release on Thursday. The figure was down by 44.7% on the year, but up by 16.5% on the quarter.

While the income showed improvement on a quarter-to-quarter basis, it remains the lowest Q1 income since 2021.

Gross profit from the marine segment was $35.7 million in Q1, down from $48.4 million a year earlier.

That left a Q1 profit margin on its bunker sales of $3.97/mt, down from $6.18/mt a year earlier, but up from $3.07/mt in Q4 2024. Since the start of 2015, the company's average marine profit margin has been $2.70/mt.

World Kinect is the new name for the firm's overall holding company, but it still remains known as World Fuel Services in its market operations.

Analyst Call

The firm has accelerated its progress toward achieving many of the strategic and operational objectives it had outlined, CEO Michael Kasbar said during the firm's analyst call on Thursday.

"Just over a year ago, we laid out a strategic road map to improve profitability and reduce earnings volatility," Kasbar noted.

"That included streamlining our portfolio and reducing our fixed cost structure to better position World Kinect for sustainable growth and enhanced resiliency in an increasingly volatile marketplace."

CFO Ira Birns expects gross profit from the marine sector to drop marginally in Q2, considering the uncertainty in the global shipping market.

"First quarter marine volumes were down 14% year-over-year, and while marine gross profit was up 4% sequentially, it declined about 26% year-over-year," Birns said.

"The year-over-year decline in volume and gross profit principally relates to lower bunker fuel prices and reduced volatility compared to the first quarter of 2024, as well as growing uncertainty related to rapidly evolving and generally unpredictable trade policies."