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BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
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WFS marine profit dips, revenue rises despite lower bunker sales volume

Overall company net income falls in Q2 and H1, whilst gross profit and revenue both climb.



Image credit: World Fuel Services


Updated on 27 Jul 2018 00:07 GMT

World Fuel Services Corporation (WFS) reports that marine gross profit during the second quarter (Q2) of 2018 dipped year-on-year (YoY) by $2.7 million, or 8.2 percent, to $30.2m.

Marine gross profit for the first half (H1) of the year fell $5.1m, or 7.7 percent, to $61.5m.

Income from operations, meanwhile, rose $0.7m, or 9.7 percent, to $7.9m in Q2, and by $0.9m, or 5.8 percent, to $16.4m in H1.

In terms of revenue, the marine segment recorded a YoY improvement of $276.1m, or 13.7 percent, to $2,289.9m for Q2, whilst H1 revenue growth was $210.4m, or 5.1 percent, to $4,317.7m.

The revenue increases were achieved despite a YoY decline in both Q2 and H1 sales volume. Q2 bunker sales volume fell 0.9m tonnes, or 13.2 percent, to 5.9m tonnes, whilst H1 volume dropped 1.9m tonnes, or 14.0 percent, to 11.7m tonnes.

Key company results

Overall, WFS recorded a dip in both Q2 and H1 net income. For Q2, the YoY decrease was $1.3m, or 4.3 percent, to $28.7m, whilst for H1 the decline was $1.5m, or 2.4 percent, to $59.9m.

Gross profit increased YoY by $15.2m, or 6.6 percent, to $246.2m in Q2, and by $27.2m, or 5.9 percent, to $489.6m in H1.

Revenue in Q2 was up YoY by $2,064.6m, or 25.5 percent, to $10,150.8m; and H2 sales climbed $3,051.8m, or 18.7 percent, to $19,332.2m.

Commenting on the results, Michael J. Kasbar, chairman and chief executive officer, said: "Our focus on operating efficiencies, portfolio refinement and organic growth initiatives should position the company for improved operating performance in 2018 and 2019."

Ira M. Birns, executive vice president and chief financial officer, remarked: "Our business performed well and recent cost management initiatives have contributed to a 170 basis point improvement in operating leverage during the first half of the year compared to 2017. These actions contributed to year-over-year adjusted EBITDA improvement for the fifth consecutive quarter.

"We remain committed to improving our operating leverage by 250 basis points in 2018 and 2019, which will aid us in growing future profitability and free cash flow."






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World Fuel Services Corp.
United States

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