Wed 3 Aug 2011 07:41

WFS posts 36% rise in Q2 net income


Marine segment generates $50.7 million gross profit as World Fuel Services posts strong Q2 results.



Marine, land and aviation fuel specialist World Fuel Services Corporation has posted a US$13.2 million, or 35.7 percent, rise in net income during the second quarter of 2011 in a comparison with the corresponding period last year.

Net income during the three months to June 30th 2011 was $50.2 million, or $0.70 diluted earnings per common share, compared to $37.0 million, or $0.61 diluted earnings per common share, in the second quarter of 2010.

The company's marine segment generated a gross profit of $50.7 million in the second quarter of this year, representing an increase of $10.5 million, or 26 percent sequentially, and a rise of $7.5 million, or 17 percent, from last year's results.

The aviation segment achieved a gross profit of $82.0 million, which was an increase of $11.9 million, or 17 percent sequentially, and a rise of $29.1 million, or 55 percent, year-on-year.

The land segment posted a gross profit of $32.4 million in the second quarter, which represented an increase of $6.0 million, or 23 percent, sequentially, and $20.9 million, or 182 percent, year-on-year.

"This quarter's results demonstrate the durability of our business model in a wide range of operating environments and the importance of having a clear business strategy," said Paul H. Stebbins, chairman and chief executive officer of World Fuel Services Corporation. "Our investments in people, process and technology, as well as our continued focus on risk management and execution have served us well and we are excited about the prospects for further expansion."

"The record earnings posted this quarter are a testament to our ability to develop the business through both organic and strategic investment initiatives," stated Michael J. Kasbar, president and chief operating officer.

New Loan Secured

The company also announced that it has obtained a new $250 million five-year term loan, amended and restated its existing $800 million credit facility and extended the maturity date of the facility to 2016. Combined, these facilities represent $1.05 billion of committed financing.

"Given continued global economic uncertainty, we are very pleased with the issuance of a $250 million five-year term loan which carries an initial rate of approximately 2 percent, further enhancing our liquidity profile," said Ira M. Birns, executive vice president and chief financial officer.

"We also amended and restated our credit facility which reduces funding costs, enhances flexibility and extends the maturity date of the facility to July 2016," added Birns.

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