Fri 28 Oct 2016 00:04

World Fuel Services posts third-quarter results


Third-quarter net income of $42.7m reported; marine segment profit drops 23.4 percent.



World Fuel Services Corporation has reported a third-quarter net income of $42.7 million, or $0.61 diluted earnings per share, compared to $43.7 million, or $0.62 diluted earnings per share, in the third quarter of 2015.

Excluding the impact of certain non-recurring expenses, adjusted third-quarter net income was $45.1 million, or $0.65 adjusted diluted earnings per share. Non-GAAP net income and diluted earnings per share for the third quarter, excluding share-based compensation and amortization of acquired intangible assets, were $57.2 million and $0.82 respectively, compared to $54.2 million and $0.77 in 2015.

The company's marine segment achieved a gross profit of $37.2 million, which was a decrease of $11.4 million, or 23.4 percent, year-on-year.

World Fuel Services' aviation segment generated a gross profit of $111.7 million, representing an increase of $4.8 million, or 4.5 percent year-on-year.

The land segment posted a gross profit of $87.8 million - an increase of $16.5 million, or 23.2 percent year-on-year.

"Our aviation segment posted record results in the third quarter driven by seasonally strong core resale operations in North America, Europe and Asia as well as continued strength in government-related fueling activities, illustrating the strength of our diversified portfolio as it served to offset continued weakness in the marine markets," stated Michael J. Kasbar, chairman and chief executive officer of World Fuel Services Corporation.

"As we continue to develop and integrate our broad-based global energy management, fulfillment and payment platforms, our focus on increasing operating efficiency and expanding our value-added service offerings will serve us well as we look to execute on our long-term growth initiatives."

Ira M. Birns, executive vice president and chief financial officer, said: "We again generated positive operating cash flow this quarter, further contributing to our strong liquidity profile. As announced today, we also amended our credit facility, which increases the aggregate size of our revolving credit facility and term loan by approximately $500 million to $2.1 billion, extends the term of the facility to October 2021 and offers more favorable terms, all of which provides us with even greater flexibility to execute on our strategic growth initiatives."

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