Wed 27 May 2009, 08:01 GMT

WFS eyes new acquisition opportunities - source


CEO says the company is looking at "opportunities to buy" in the marine, aviation and land fuel segments.



The Chief Executive of US-based fuels specialist World Fuel Services (WFS) is reported to have said that the company will continue to expand through acquisitions and that it is currently looking at new investment opportunities in the marine, aviation and land fuel segments.

In an interview with Dow Jones, WFS CEO Paul H. Stebbins [pictured] is quoted as saying "We certainly believe that in today's market, there are opportunities to buy."

The news follows the company's recent acquisition of UK-based marine and land based fuels provider Henty Oil last month.

Henty, based in Liverpool, with 2008 marine volume of over 250,000 metric tons, services the Irish Sea ports of Liverpool, Holyhead and Heysham. Henty's land segment, with 2008 volume of approximately 10 million gallons, provides fuel and gas oil to a broad range of customers throughout the United Kingdom.

Last month WFS also completed the acquisition of TGS Petroleum, Inc., a Chicago-based firm with 2008 volume of over 100 million gallons, which distributes gasoline and diesel fuel under long-term contracts to over 160 retail petroleum operators in the US.

Commenting on the bunker fuel segment, Stebbins is reported to have said that the fear of counterparty risks has made suppliers and buyers of marine fuel more "focused on who they are putting their business through than ever before," and that the company's small drop in sales volumes against industry expectations of between 20%-25% would indicate that WFS has increased its market share as a consequence.

"Counterparty risk is going to be an absolutely critical part of business strategy in the future. The days of easy liquidity, easy credit, easy leverage are gone," added Stebbins.

In regard to capital, Stebbins said WFS was currently sitting on around $400 million in cash and approximately $950 million in liquidity.

The company was reported earlier this month to have already granted between GBP30 million ($45 million) and GBP 40 million ($60 million) to Henty Oil in order to develop the business further.

"We will be looking to create small oil terminals around the UK, especially in Scotland and Ireland,” said Company President Paul Henty.


Monjasa Oil & Shipping Trainee (MOST) trainees. Monjasa opens applications for global trainee programme  

Marine fuel supplier seeks candidates for MOST scheme spanning offices from Singapore to New York.

Singapore's first fully electric harbour tug. Singapore's first fully electric tug completes commissioning ahead of April deployment  

PaxOcean and ABB’s 50-tonne bollard-pull vessel represents an early step in harbour craft electrification.

Fuel for thought: Hydrogen report cover. Lloyd's Register report examines hydrogen's potential and challenges for decarbonisation  

Classification society highlights fuel's promise alongside safety, infrastructure, and cost barriers limiting maritime adoption.

Bureau Veritas and Straits Bio-LNG sign MoU. BV Malaysia partners with Straits Bio-LNG on sustainable biomethane certification  

MoU aims to establish ISCC EU-certified biomethane production and liquefaction facility in strategic alliance.

Molgas Energy logo. Molgas becomes non-clearing member at European Energy Exchange  

Spanish energy company joins EEX as it expands European operations and strengthens shipper role.

Yiannis Diamandopoulos, Elinoil. Diamandopoulos appointed CEO of Elinoil as Aligizakis becomes chairman  

Greek marine lube supplier announces leadership changes following board meeting on 5 January.

Sustainable Marine Fuel Services webinar hosted by BV graphic. Bureau Veritas to host webinar on sustainable marine fuel transition challenges  

Classification society to address regulatory compliance, market trends, and investment strategies in February online event.

Inchcape Shipping Services logo. Inchcape to provide bunkering services from new Indonesian offices  

Port agency establishes presence in key bulk and tanker operation hubs handling 150 calls annually.

CPN launch of B100 marine biodiesel supply in Hong Kong graphic. Chimbusco Pan Nation launches B100 biodiesel supply in Hong Kong  

Bunker tanker Guo Si becomes Hong Kong's first Type II certified vessel for pure biodiesel operations.

Vox Apolonia vessel. Van Oord completes Dutch beach replenishment using 100% bio-LNG  

Dredger Vox Apolonia deposited 1 million cbm of sand at Noord-Beveland beach under Coastline Care programme.





 Recommended