World News
World Kinect Bunker Sales Volumes Drop to Lowest in at Least Ten Years
Marine fuel sales volumes at World Kinect - the world's second-largest bunker supplier, also known as World Fuel Services - dropped to the lowest level since at least 2015 last year.
The firm saw bunker sales volumes of 16.6 million mt last year, down by 1.5% on the year and the lowest annual total since at least 2015, the earliest year for which data is publicly available.
The company's income from marine operations was $64.8 million last year, down by 21.2% on the year and the lowest since 2021.
That left its average profit margin on its bunker sales of about $3.88/mt in 2024, down by 20.2% on the year and the least since 2021.
Q4 Performance
The firm saw income from marine operations of $12.7 million in Q4, it said in an earnings release last week. The figure was down by 34.2% on the year and by 14.8% from Q3.
The company is the world's second-largest seller of marine fuels after Bunker Holding.
Gross profit from the marine segment was $34.2 million in Q4, down from $44 million a year earlier.
The firm sold 4.1 million mt of bunker fuel in Q4, down by 3.6% on the year but up by 4.5% on the quarter.
That left a Q4 profit margin on its bunker sales of $3.08/mt, down from $4.51/mt a year earlier and from $3.77/mt in Q3. Since the start of 2015 the company's average marine profit margin has been $2.68/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
"Our marine business performed in line with expectations given the current market environment," CEO Michael Kasbar said in a call with analysts on Thursday.
CFO Ira Birns put the firm's decline in marine profits down to market conditions.
"The year-over-year declines in gross profit were principally driven by lower bunker fuel prices and reduced market volatility," her said on the call.
"As we look to the first quarter, we expect marine gross profit to be down year-over-year for effectively the same reasons.
"But as the year progresses, we should begin to see the marine year-over-year comparisons normalize as market conditions and prices began softening in the second quarter of 2024."
About Jack Jordan
Jack Jordan is the Managing Editor of Ship & Bunker, the world’s most read marine fuel-focused publication.
He is an experienced financial editor and reporter with a first-class degree in Arabic and Russian, a postgraduate diploma in newspaper journalism and several years' history of covering the oil and shipping industries and capital markets.
Jack is based in London, UK.
About Ship & Bunker
Ship & Bunker is the world's most read publication focused on the marine fuel markets. Completely independent, it is the leading industry authority providing comprehensive daily news, exclusive in-depth features and analysis, along with daily & historical bunker price indications.
To contact the editor responsible for this story email us at editor@shipandbunker.com
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 570.00 | 3.50 | 694.50 | 0.50 |
| Rotterdam | 541.00 | 1.00 | 687.50 | 1.00 |
| Houston | 566.00 | 0.50 | 732.50 | 6.00 |
| Fujairah | 568.50 | 1.00 | 770.00 | 3.50 |
| Global 20 Ports Average | 596.00 | 2.00 | 791.50 | 4.50 |
| Global 4 Ports Average | 561.50 | 1.00 | 721.00 | 2.50 |
| Global Average Bunker Price | 641.00 | 0.50 | 831.00 | 0.00 |
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