World Fuel Services: Q1 Volumes Flat at 7.7M mt, but Profit Slips on "Continued Weakness in the Marine Markets"

Thursday April 28, 2016

Miami, Florida Headquartered World Fuel Services Corporation (WFS) [NYSE:INT] today released its Q1 2016 report, showing bunker volumes were flat at 7.7 million metric tonnes (mt) year-on-year but the "continued weakness in the marine markets" dragged the unit's gross profit down 27 percent to $39.2 million, a decrease of $14.8 million.

Unseasonably warm weather in the U.K. and U.S also played a factor in the overall result, WFS said, who reported an overall first quarter net income of $52.4 million, down from $55.6 million in the first quarter of 2015.

"Our aviation and land segments performed well, with our overall volumes up 6% year-over-year," said WFS chairman and chief executive officer Michael J. Kasbar.

"Despite the disruption in energy markets and continued global economic weakness, we remain confident in the ability of our diversified logistics, transaction and energy management business model to deliver near and long-term growth."

Despite the lack of growth in bunker volumes, the 7.7 million mt recorded by WFS for the quarter is still a notable result for the company, with the same volume having been recorded in Q1 2015 and representing an at the time record high.

Last May Kasbar said the record 2015 Q1 volume was "totally unrelated" to the collapse of competitor OW Bunker.