« Insights & News

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

Q2 2019 ($m) Q2 2018 ($m)
Ops income 10.1 7.9
Gross profit 36.4 30.2
Revenue 2,011.4 2,289.9
Source: World Fuel Services

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

3-month (MMT) 6-month (MMT)
Q2 2018 5.9 11.7
Q3 2018 6.0 11.9
Q4 2018 6.1 12.1
Q1 2019 5.2 11.3
Q2 2019 5.1 10.3
Source: World Fuel Services

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."

Maersk spent $476m less on bunkers in 2019

Fuel consumption and average price fell by 6.7% and 2.8%, respectively.

Linde deal speeds up growth strategy implementation: Gasum CEO

Acquisition described as 'important step in the development of the Nordic gas market'.

Bunker One enters strategic alliance with Vertex Energy

Bolsters position in the US with exclusive off-take deal for very-low-sulphur fuels.

Singapore annual bunker sales fall to lowest level since 2015

Volume declines for second successive year at Asian port.

KPI Bridge Oil appoints managing director in Denmark

Former Dan-Bunkering trader joins another Bunker Holding business as MD.

ExxonMobil starts EMF.5 fuel deliveries in France, Italy and Thailand

Ports join Antwerp, Rotterdam, Singapore and Zeebrugge as locations where 0.5% fuels are now available.

PMG Holding starts VLSFO deliveries in Ukraine

Supplier says 'several thousand tonnes' have already been supplied, with schedule 'filling up rapidly'.

Gasum conducts first ship-to-ship LNG bunkering to a cruise vessel

Costa Cruises newbuild supplied with LNG in Turku, Finland.

KPI Bridge Oil selling more 2020-ready fuels than HSFO

CEO predicts 'frequent and significant price swings' prior to equilibrium.

Gasum performs first LNG bunkering at Swedegas facility

New accord means clients can now refuel whilst loading cargo - thus increasing efficiency.