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.”


Christian Vandvig Finnerup, Dan-Bunkering. Dan-Bunkering appoints Christian Vandvig Finnerup as US managing director  

Finnerup transitions from Singapore role to lead American operations.

Hai Gang Wei Lai vessel. SIPG orders Wärtsilä systems for new LNG bunker vessel  

Shanghai International Port Group orders integrated cargo handling and fuel systems from Wärtsilä.

Chris Seide, Integr8 Fuels and William Kanavan, Pentarch Offshore Solutions. Integr8 Fuels signs MOU with Pentarch for bunker services at Port of Edrom  

Integr8 Fuels and Pentarch Offshore Solutions have signed an agreement to develop bunker fuel services.

Eagle Vellore vessel. MISC orders two LNG dual-fuel Suezmax tankers as part of fleet renewal  

Malaysian shipowner expands dual-fuel fleet with newbuilds backed by long-term charters.

Eunice Low, Oilmar DMCC. Oilmar DMCC appoints Eunice Low as marine fuels trader in Singapore  

Low joins firm's Singapore trading department with a decade of industry experience.

HMM container ship. HD Hyundai secures $1.46bn order for eight LNG dual-fuel container ships  

South Korean shipbuilder reports highest container ship order volume since 2007 supercycle.

Arctic black carbon emissions urgency graphic. Clean Arctic Alliance urges IMO action on black carbon after 'disappointing' COP30  

Environmental coalition calls for Arctic shipping fuel regulations ahead of December 5 deadline.

Egypt's Ministry of Petroleum and Mineral Resources and Suez Canal Authority MOU Signing Ceremony. Egypt's petroleum ministry and Suez Canal Authority sign MOU for LNG bunkering facility  

Ministry and canal authority to develop LNG supply station in Port Said.

Legend of the Seas main engine startup. Meyer Turku starts first main engine on Legend of the Seas cruise ship  

Finnish shipbuilder fires up Wärtsilä engine ahead of 2025 Royal Caribbean delivery.

Malik Energy Leadership Development Programme group photo. Malik Energy launches internal leadership development programme  

Marine fuel supplier rolls out training initiative for managers across its supply and energy divisions.





 Recommended