Tue 30 Apr 2013, 22:01 GMT

World Fuel Services posts rise in Q1 net income


'Continuous headwinds' for marine segment as year-on-year gross profit falls 24 percent.



Leading marine, aviation and land fuel specialist World Fuel Services Corporation has today posted a rise in first quarter net income compared to 2012.

Net income during the first three months of the year was $48.7 million, or $0.68 diluted earnings per share, compared to $46.4 million, or $0.65 diluted earnings per share, in the corresponding period last year.

Non-GAAP net income and diluted earnings per share for the first quarter, which exclude share-based compensation and amortization of acquired intangible assets, were $55.0 million and $0.77, respectively, compared to $52.9 million and $0.74 in 2012.

The company’s marine segment generated a gross profit of $41.7 million, representing a decrease of $5.6 million, or 12 percent, sequentially and $13.4 million, or 24 percent, year-on-year.

The aviation segment achieved a gross profit of $77.0 million, which was an increase of $0.7 million, or 1 percent, sequentially and a rise of $12.1 million, or 19 percent, year-on-year.

The company’s land segment posted a gross profit of $63.7 million - an increase of $23.9 million, or 60 percent, sequentially and $26.5 million, or 71 percent, year-on-year.

"We are pleased with our overall performance in the first quarter despite continuous headwinds we face in our marine segment," stated Michael J. Kasbar, president and chief executive officer of World Fuel Services Corporation. “We continue to perform well in this uncertain global environment, while pursuing additional growth opportunities."

"We generated $110 million in operating cash flow in the first quarter, our second consecutive quarter of positive operating cash flow, further strengthening our financial profile," said Ira M. Birns, executive vice president and chief financial officer. "Our solid cash flow performance combined with our continued focus on driving operating efficiencies should enhance profitability, while providing greater liquidity to support organic growth and strategic investment opportunities."


Illustration of balance scale with cargo ship and penalty block. FuelEU penalties spark contract disputes as first-year compliance costs emerge  

Shipowners and charterers negotiate biofuel handling, payment timing, and multiplier penalties under new regulations.

Marina Bay Sands, Singapore. Singapore tops first global container port ranking by DNV and Menon Economics  

The port leads across all five assessment pillars in inaugural industry report.

Jack Spyros Pringle, Lloyd’s Register. Marine fuel procurement becomes strategic imperative as regulatory pressures mount: LR  

Operators must adopt comprehensive fuel strategies amid supply constraints and compliance costs, says Lloyd's Register.

Xinfu124 ultra-large LNG carrier. Private Chinese shipbuilder plans to deliver eight dual-fuel boxships  

Yangzi Xinfu is fully booked until May 2029 and expected to post annual sales revenue exceeding $1.4 billion.

Østensjø Rederi newbuild tug render. Østensjø Rederi orders methanol-ready tug from Spanish shipyard  

Norwegian operator contracts Astilleros Gondán for vessel with diesel-electric hybrid propulsion system.

Bound4blue worker in safety gear. Bound4blue establishes China production base for wind propulsion systems  

Spanish wind propulsion firm targets Asian shipbuilding market with outsourced manufacturing network.

Alfa Laval and Hanwha Ocean Ecotech sign MoU. Alfa Laval and Hanwha Ocean Ecotech partner on ammonia fuel systems  

Collaboration aims to develop ammonia fuel technology for dual-fuel vessels in the Asian market.

Meg Dowling, Lloyd's Register. Nuclear-powered boxships could deliver $68m annual savings: Lloyd's Register  

Small modular reactors could eliminate fuel costs and carbon penalties while boosting cargo capacity, says report.

Minerva Bunkering and Autoridad Portuaria de Las Palmas (APLP) signing ceremony. Minerva Bunkering extends Las Palmas terminal concession by 15 years  

Bunker supplier adds barge capacity and explores new terminal for energy transition fuels.

Liam Blackmore, Lloyd's Register. Ammonia Energy Association releases gas detection whitepaper with Lloyd's Register input  

Lloyd's Register contributed expertise to new guidance on ammonia detection systems for the maritime sector.