Fri 28 Apr 2017, 07:08 GMT

World Fuel Services posts drop in Q1 net income


Marine segment records 39% rise in revenue and 27.2% decline in income.



World Fuel Services Corporation has reported a drop in first-quarter net income of $20.5 million, or 39.6 percent, as income from marine operations fell by 27.2 percent year-on-year.

Net income for the first three months of this year was $31.3 million, compared to 51.8 million during the corresponding period last year.

Excluding the impact of certain one-time items, adjusted first quarter net income was $34.6 million, or $0.50 adjusted diluted earnings per share. In the first quarter of 2016, net income as adjusted for one-time items was $53.0 million, or $0.76 adjusted diluted earnings per share.

Non-GAAP net income and diluted earnings per share for the first quarter of 2017, excluding share-based compensation, amortization of acquired intangible assets and other one-time items were $44.5 million and $0.64, respectively, compared to $62.5 million and $0.90 in 2016.

Revenue rose by $3.0 billion, or 57.9 percent, to $8.194 billion, up from $5.191 billion during the corresponding period last year. Gross profit was $231.4 million compared to $221.5 million a year ago.

Marine

In total, 1.804 billion gallons, or 6.8 million tonnes, was sold by the marine division during the first quarter, which was a decline of 219.3 million gallons (approx. 800,000 tonnes), or 10.8 percent, compared to last year's figure of 2.023 billion gallons (7.66 million tonnes).

Despite the fall in sales volume, marine segment revenue rose by $817 million, or 39 percent, to $2.094 billion, up from $1.277 billion a year ago.

Marine gross profit, meanwhile, fell by $5.5 million, or 14.2 percent, to $33.6 million.

Income from marine operations was $8.3 million - a decline of $3.1 million, or 27.2 percent.

In a statement, Michael J. Kasbar, chairman and chief executive officer of World Fuel Services, said that during the first quarter the company was "focused on integrating and streamlining overall operations in order to reduce operating costs and gain identified efficiencies".

"We remain focused on executing our strategy of building a ubiquitous global energy management, fulfilment and payments business, while driving improved levels of profitability as the year progresses".

"We generated $137 million of cash flow from operations, further strengthening our balance sheet, increasing the total cash generated over the past five years to $1.3 billion," remarked Ira M. Birns, executive vice president and chief financial officer.


Andre M ammonia-fuelled gas carrier. China delivers first domestically built ammonia-fuelled gas carrier  

CCS-classed vessel becomes the world's second ammonia-fuelled gas carrier, testing rules for the IMO's zero-carbon shipping transition.

Nordion Energi liquefied biogas (LBG) facility render. Storage tank installed as Gothenburg's LBG bunkering plant advances towards 2027 completion  

Nordion Energi's liquefied biogas facility at the Port of Gothenburg takes a step forward with tank installation.

Maran Myron vessel. Maran Tankers takes delivery of dual-fuel Suezmax Maran Myron  

Vessel is sixth dual-fuel tanker in eight-vessel series built by New Times Shipbuilding.

Lake Victoria truck-to-ship (TTS) bunkering operation. EPS completes first truck-to-ship LNG bunkering operation in Davisville  

Fuel delivered to the pure car and truck carrier Lake Victoria whilst at berth.

Maritime and Port Authority of Singapore logo. MPA opens applications for LNG floating storage unit licences  

Singapore invites applications for up to two LNG floating storage unit licences to bolster bunkering supply resilience.

Rasmus Frimann Nielsen and Lars Zimmermann, Everllence. Everllence's small-bore GenSet orders surpass 2,000 in 2026  

Engine maker reports strong order intake across its small-bore portfolio, citing demand for reliable, fuel-flexible auxiliary power.

MT Tulip bunker tanker. Bunker One renews MT Tulip charter, plans mass flow meter upgrade in Mauritius  

Bunker One is keeping its bunker tanker in Mauritius while adding flow metering technology to improve delivery transparency.

COP31 panel discussion. Fund for Energy Efficiency Technologies becomes first to adopt revised Singapore-Asia Taxonomy  

FEET's adoption coincides with Lloyd's Register's independent review of GCMD's methodology for quantifying fuel savings from wind-assisted propulsion systems.

Arsenio Dominguez, IMO Secretary-General. IMO chief urges states to enforce safety rules in Strait of Hormuz amid rising attacks  

Arsenio Dominguez says more than 130 attacks on commercial vessels have been verified since February, with at least 25 seafarers killed.

OOCL Wisdom ship-to-ship (STS) bunkering operation at Xiamen Port. Xiamen Port launches 'green methanol bunkering' with OOCL Wisdom  

Boxship received 1,005 tonnes of methanol, corresponding to a reduction of more than 1,600 tonnes in carbon emissions, says COSCO Shipping.