World Fuel Services Increases Annual Bunker Sales for First Time Since 2015

World Fuel Services Annual Bunker Sales. Image Credit: Ship & Bunker. Data Credit: World Fuel Services.

World Fuel Services [NYSE: INT] (WFS) has posted an increase in its annual bunker sales volume for the first time since 2015.

Total sales for 2021 were 18.4 million mt, a lift of 5% over the 17.5 million mt sold in 2020.

Volumes at WFS have been on the slide since the 32.6 million mt sold in 2015 after the one-time top bunker trading firm said it was moving away from what it described as "low margin, low return activity" centered largely on its Asia business.

WFS's quarterly volumes rose steadily over the course of the year with sales of 4.2 million mt, 4.6 million mt, 4.8 million mt, and now 4.9 million mt for 2021's Q1, Q2, Q3, and Q4 respectively.

The marine segment generated a gross profit of $100.3 million for 2021, down sharply from $151.4 million in 2020, although as WFS noted this is somewhat understandable given the high margin environment surrounding the IMO 2020 transition. 

"Our marine segment generated gross profit of $100.3 million, a decrease of 34% year-over-year, principally related to a decline in average margins in the core resale business when compared to the strong margins achieved in the prior year related to the supply imbalances arising from the implementation of the IMO 2020 regulations," WFS explained in its Q4 and full year earnings report today.

Overall, including its aviation and land segments, WFS reported a total gross profit of $788.2 million, down 7% year-over-year, a GAAP net income of $73.7 million and adjusted net income of $86.0 million, or $1.36 per share.

The results were viewed positively by analysts who noted that WFS has beaten earnings per share (EPS) estimates for each of the last four quarters.

"We delivered solid results in what remained a challenging operating environment in 2021, and we believe we are well-positioned to carry that momentum into 2022," said chairman and chief executive officer, Michael J. Kasbar.

Ira M. Birns, executive vice president and chief financial officer, added that "we begin 2022 poised for growth with a more ratable and leverageable business model when compared to prior years."