Fri 27 Feb 2009 07:27

World Fuel Services posts $105 million FY08 profit


Increase in net income is helped by 78 percent rise in marine segment profits.



World Fuel Services Corporation, a global leader in the marketing and sale of marine, aviation and land fuel products, has posted better-than-expected financial results for the fourth quarter of 2008 and a US$40.2 million increase in net income for the full year, helped by a 78 percent rise in marine segment profits.

The company reported fourth quarter net income of $28.7 million, or $0.98 per share, compared to $18.1 million, or $0.63 per share during the same period in 2007, which represents a US$10.6 million profit increase.

For the full year, net income rose by US$40.2 million to $105.0 million, or $3.62 per share, compared to $64.8 million, or $2.23 per share, in 2007.

Non-GAAP net income for the fourth quarter, which excludes share-based compensation and amortization of acquired intangible assets, was $36.3 million, or $1.24 non-GAAP diluted earnings per share, compared to $19.7 million, or $0.68 non-GAAP diluted earnings per share, in the fourth quarter of 2007.

For the full year, non-GAAP net income was $120.1 million, or $4.14 non-GAAP diluted earnings per share, compared to $71.0 million, or $2.44 non-GAAP diluted earnings per share, in 2007.

“We continue to provide value to the global supply chain in this turbulent global economic environment,” said Paul H. Stebbins, chairman and chief executive officer of World Fuel Services Corporation.

“In 2008 we delivered record results, significantly improved our balance sheet and navigated risk in one of the most challenging markets in history. Our value proposition and liquidity should enable us to continue to execute on our long term strategy for growth.”

The company’s marine segment generated gross profit of $203.3 million in 2008, an increase of 78 percent year-on-year.

“While global trade slowed in the latter half of 2008, our strategy of focusing on disciplined risk management and value added services resulted in record operating profit in this segment,” said Michael J. Kasbar, president and chief operating officer.

The company’s aviation segment generated full year gross profit of $165.8 million, an increase of 35 percent when compared to full year 2007 results.

“During a year where we have seen the airline industry struggle with bankruptcies and an overall decline in global air traffic we managed risk, improved our results and successfully integrated AVCARD,” added Kasbar. The company’s land segment posted gross profit of $26.2 million in 2008 driven principally by the acquisition of the Texor business in June.

World Fuel Services also announced that its Board of Directors has approved an increase in its regular quarterly cash dividend from $0.0375 to $0.075 per share, representing a 100 percent increase over the regular quarterly cash dividend paid in 2008.

World Fuel’s Board of Directors also declared that the dividend for the first quarter of 2009 will be paid on April 8, 2009 to shareholders of record at the close of business on March 20, 2009.

“Consistent with our long term strategy to enhance shareholder value, we took action and doubled our dividend per share,” said Ira M. Birns, executive vice president and chief financial officer.

“We also are confident that our future cash flow generation, current liquidity profile and our continued focus on managing working capital will enable us to continue to grow the business both organically and through strategic investments.”

Martin Vorgod, CEO of Global Risk Management. Martin Vorgod elevated to CEO of Global Risk Management  

Vorgod, currently CCO at GRM, will officially step in as CEO on December 1, succeeding Peder Møller.

Dorthe Bendtsen, KPI OceanConnect. Dorthe Bendtsen named interim CEO of KPI OceanConnect  

Officer with background in operations and governance to steer firm through transition as it searches for permanent leadership.

Bunker Holding's executive management team, from left to right: CCO Anders Grønborg,  COO Peder Møller, CEO Keld R. Demant and CFO Michael Krabbe. Bunker Holding revamps commercial department and management team  

CCO departs; commercial activities divided into sales and operations.

Image of a bunker delivery being performed by Peninsula's Hercules 8000 tanker vessel. Peninsula extends UAE coverage into Abu Dhabi and Jebel Ali  

Supplier to provide 'full range of products' after securing bunker licences.

A screenshot taken from Peninsula's homepage on October 4, 2024. Peninsula to receive first of four tankers in Q2 2025  

Methanol-ready vessels form part of bunker supplier's fleet renewal programme.

Stephen Robinson, pictured on his appointment as Head of Bunker Strategy and Procurement at Tankers International. Stephen Robinson heads up bunker desk at Tankers International  

Former Bomin and Cockett MD appointed Head of Bunker Strategy and Procurement.

Chart showing percentage of off-spec and on-spec samples by fuel type, according to VPS. Is your vessel fully protected from the dangers of poor-quality fuel? | Steve Bee, VPS  

Commercial Director highlights issues linked to purchasing fuel and testing quality against old marine fuel standards.

Ships at the Tecon container terminal at the Port of Suape, Brazil. GDE Marine targets Suape LSMGO by year-end  

Expansion plan revealed following '100% incident-free' first month of VLSFO deliveries.

Hercules Tanker Management and Hyundai Mipo Dockyard sign bunker vessel agreement Peninsula CEO seals deal to build LNG bunker vessel  

Agreement signed through shipping company Hercules Tanker Management.

Illustration of Kotug tugboat and the logos of Auramarine and Sanmar Shipyards. Auramarine supply system chosen for landmark methanol-fuelled tugs  

Vessels to enter into service in mid-2025.


↑  Back to Top