World Fuel Services Corporation reported 1Q 2017 sales of 6.8 million metric tonnes. Image Credit: WFS
World Fuel Services Corporation (WFS) [NYSE:INT] Thursday in its 1Q 2017 earnings report said it sold 6.8 million metric tonnes (mt) of bunkers for the period, an 11 percent drop year-over-year from the 7.7 million mt sold in 1Q 2016.
"The largest driver of the volume decline came from a reduction in low margin, low return activity in Asia," CFO Ira Birns said during the firm's earnings call.
Overall, the company's marine segment generated gross profit of $33.6 million, a decrease of $5.5 million or 14.2 percent year-over-year.
"The gross profit decline in marine was principally driven by reduced volume in margins in our core business impacted by market conditions and lower profits from the sale of price risk management products to our marine customers," Birns explained.
"In the mean time, the actions that we took over the past few months to streamline our operations in the marine model by taking cost out of the business have been effectively completed which has improved the operating efficiencies of marine business going forward."
As a whole, WFS reported a first quarter 2017 net income of $31.3 million.