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.”


CEO, Fredrik Witte and CFO, Mette Rokne Hanestad. Corvus Energy raises $60m from consortium for maritime battery expansion  

Norwegian energy storage supplier secures growth capital to accelerate zero-emission shipping solutions.

Indian Register of Shipping hosts at LISW 2025. Shipping industry warned nuclear power is essential to meet 2050 net zero targets  

Experts say government backing is needed for nuclear investment.

Rendering of LNG bunkering vessel Avenir TBN. ExxonMobil enters LNG bunkering with two vessels planned for 2027  

Energy company to charter vessels from Avenir LNG and Evalend Shipping for marine fuel operations.

Logos of international maritime associations supporting IMO Net Zero Framework. Shipping associations back IMO Net-Zero Framework ahead of key vote  

Seven international associations urge governments to adopt comprehensive decarbonisation rules at IMO meeting.

Concept illustration of biofuel and renewable energy production. Study claims biofuels emit 16% more CO2 than fossil fuels they replace  

Transport & Environment report challenges biofuels as climate solution ahead of COP30.

Rendering of Green Ammonia FPSO. ABB to supply automation systems for floating green ammonia production vessel  

Technology firm signs agreement with SwitcH2 for Portuguese offshore facility producing 243,000 tonnes annually.

VPS launches VeriSphere digital platform. VPS launches Verisphere digital platform to streamline marine fuel decarbonisation tools  

New ecosystem connects multiple maritime emissions solutions through single user interface.

Wallenius Sol vessel Botnia Enabler. Wallenius Sol joins Gasum's FuelEU Maritime compliance pool as bio-LNG generator  

Partnership aims to help shipping companies meet EU carbon intensity requirements through bio-LNG pooling.

IAPH Clean Marine Fuels Working Group. IAPH launches products portal with ammonia bunker safety checklist  

Port association releases industry-first ammonia fuel checklist alongside updated tools for alternative marine fuels.

Berkel AHK Logo. Berkel AHK joins Global Ethanol Association as founding member  

German ethanol producer becomes founding member of industry association focused on marine fuel applications.





 Recommended