WFS Sees "Very Small Impact" From Marine Write Offs

WFS says its market share has grown

World Fuel Services Corp. [NYSE:INT] (WFS) saw a "very small impact" from write offs in its marine segment in the third quarter of 2012 despite the difficulties the industry is facing, company officials told analysts during its earnings call for the period.

"We continue to perform very, very well, once again using our somewhat conservative profile from a risk management perspective, which I think one needs in this type of environment and we've avoided the minefield so to speak so far," said Ira Birns, the company's chief financial officer and executive vice president.

The company's revenues from the marine segment fell 10 percent for the quarter on a year-over-year basis to $3.6 billion, but profits for the division rose 8 percent to $54 million.

"We continue to find opportunities in the marine market place, while maintaining a strong risk management discipline," Birns said.

CEO Michael Kasbar said the company is "well positioned" in the marine market.

"[Our team is] I think recognized as being a superior marine fuel counter party, having significant amount of sophistication, whether its outsourcing fuel management, expanding our lubricants activity, the logistics side of it, certainly the financial counter party, the risk management side," he said.

"I'm sure that we've gained market share, I think that's unquestioned.

"So as things start to come back, I think we are extremely well positioned and certainly for those companies that are financially challenged, we got a level of sophistication where we can work with them to get them through some of the darkest days and we've done that."