Fri 23 Feb 2018, 14:33 GMT

WFS marine posts drop in Q4 gross profit, revenue


$77m loss from operations posted for the last quarter of 2017.


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Image credit: File image / Pixabay
World Fuel Services reported on Thursday that its marine division achieved a fourth-quarter (Q4) gross profit of $29.0 million, which was a year-on-year (YoY) decrease of $4.5 million, or 13.4 percent, on the $33.5 million achieved during the corresponding period in 2016.

In Q4, marine revenue also declined - falling $119.7 million, or 5.6 percent, to $2,025.3 million.

In terms of income from operations, which is essentially gross profit minus fixed operating expenses and depreciation, WFS posted a $77.7 million loss. During the corresponding period in 2016, WFS reported a loss of $2.5 million.

As previously reported, WFS posted a YoY and QoQ decline in Q4 marine sales at 6.1 million tonnes.

WFS also recorded a non-cash impairment charge of $91.9 million in Q4, which was said to be primarily related to the firm's marine segment as a result of growing weakness in the maritime industry along with a further decline in demand for price risk management products and its decision to exit certain marine markets.

During the fourth quarter, WFS appointed IT specialist Stephen J. Gold to its board of directors. Gold has more than 30 years of information systems management experience. The company also hired former IBM CIO Jeff Smith as its COO.


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