Chairman and Chief Executive Officer, Michael Kasbar. Image Credit: WFS
Amid ongoing tough conditions for the bunker industry, World Fuel Services (WFS) [NYSE:INT] today reiterated that it was committed to the marine segment and is well placed to capitalize on the upcoming IMO 2020 rule that will see the global sulfur cap for marine fuel drop to 0.50% from January 1, 2020.
"Our marine business is doing an excellent job of managing costs and repositioning the business within the supply chain. We are committed to the global marine logistic markets and are well positioned to meet the requirements of 2020 by virtue of our global sourcing and distribution capabilities including LNG," Chairman and Chief Executive Officer, Michael Kasbar, said during today's 1Q 2018 earnings call as translated by SeekingAlpha.
As Ship & Bunker has previously reported, WFS' bunker volumes have been steadily falling as it pulls back from "low margin or unprofitable" markets, particularly in the Asia Pac region.
Bunker volumes reported today for 1Q 2018 were 5.8 million metric tonnes (mt), compared to 6.8 million mt during the period in 2017 and 7.7 million mt sold in 1Q 2016.
Michael J. Kasbar,chairman and chief executive officer, WFS
I don't think there is a lot to celebrate within the market. I think, this is still a bit of a slog
Kasbar was also clear that there had been no recent change in fortunes for the industry as a whole, and the situation was unlikely to see any improvement either.
"I don't think there is a lot to celebrate within the market. I think, this is still a bit of a slog," he said.
"Container has sorted themselves out a little bit, but I think it's steady as she goes."
Still, CFO Ira Birns said WFS was committed to the Marine industry because "we think it makes sense."
"We think we've got a good synergy between our land business and our Marine business, our natural gas business in terms of provisioning LNG. We think we have got a very good mousetrap within Marine, we have got a great organization," he said.
"But we are not forecasting any robust increase and it's just continuing to provide a superior service for our clientele."