|WFS posts marine income rise despite new low in sales volume|
|Marine income from operations and gross profit both climb as WFS reports lowest quarterly and half-year sales volume since public records began in 2014.
|Michael Kasbar, chairman and chief executive officer of World Fuel Services. Image credit: World Fuel Services|
|Updated on 26 Jul 2019 10:41 GMT
|World Fuel Services (WFS) reports that its marine segment posted a year-on-year (YoY) increase in income from operations of $2.2m, or 27.8 percent, to $10.1m in the second quarter (Q2) of 2019, and a YoY improvement of $7.2m, or 43.9 percent, to $23.6m for the first half (H1) of the year.
Marine gross profit also rose YoY - by $6.2m, or 20.5 percent, to $36.4m in Q2, and by $10.1m, or 16.4 percent, to $71.6m in H1.
This was despite Q2 revenue declining $278.5m, or 12.2 percent, to $2,011.4m, and H1 revenue falling $373.8m, or 8.7 percent, to $3,943.9m.
WFS: Key marine segment results
Lowest quarterly and half-year sales volume since public reporting began in 2014
In addition to declining revenue, marine sales volume was also down compared to 2018 as the quarterly figure fell to its lowest level - 5.1m tonnes - since the company began publicly reporting this piece of data back in Q3 2014.
Second-quarter sales volume was lower YoY by 800,000 tonnes, or 13.6 percent; whilst in H1, bunker volume tumbled 1.4m tonnes, or 12.0 percent, to 10.3m tonnes - also the lowest half-year figure since the start of volume reporting almost five years ago.
WFS: Marine sales volume
Overall company performance
In its overall company results, WFS saw Q2 net income rise YoY by $8.3m, or 28.9 percent, to $37.0m, whilst H1 net income climbed $14.3m, or 23.9 percent, to $74.2m.
Gross profit in Q2 increased YoY by $22.4m, or 9.1 percent, to $268.6m; and in H1, the figure was up $30.1m, or 6.1 percent, to $519.7m.
Overall revenue - like marine revenue - fell $691.4m, or 6.8 percent, to $9,459.4m in Q2; and in the first six months, WFS generated $18,138.2m, which was a decline of $1,194m, or 6.2 percent.
Commenting on the results, Michael J. Kasbar, chairman and chief executive officer, said: "We delivered strong results in the second quarter, benefiting from our actions to drive improvements in operating efficiencies and profitability. Our priority is to leverage our diversified business model and industry expertise to provide our customers with innovative solutions that deliver value today and in the future."