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WFS 2022 marine fuels segment records 155% on year increase in annual gross profit

Firm attributes rise primarily to impact of higher bunker fuel prices and rising interest rates, leading to an increasingly constrained credit environment, as well as higher market volatility.

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Global energy management company World Fuel Services (WFS) on Thursday (27 October) recorded an annual gross profit of USD 256 million in its marine segment for 2022 - an increase of 155% year-on-year.

The increase was primarily attributed to the impact of higher bunker fuel prices and rising interest rates, leading to an increasingly constrained credit environment, as well as higher market volatility.

The company posted net income of USD 114 million in 2022, higher than net income of USD 73.7 million seen in 2021. 

Revenue for its combined aviation, land and marine segments in 2022 was USD 59 billion, a 88% jump from revenue of USD 31 billion in 2021.

The company also posted a sharp rise in its net income in its fourth quarter (Q4) of 2022 with USD 20.9 million, an increase of 36% from 15.4 million during the same period in 2021. 

“We delivered solid results across all of our businesses, despite continued global macroeconomic uncertainty,” stated Michael J. Kasbar, chairman and chief executive officer. 

“We continue to focus on leveraging our technical expertise and global logistics and distribution capabilities to satisfy our customers’ core energy requirements, as well as support their growing needs in achieving their carbon reduction goals.”

“In the third quarter, all of our business segments performed exceptionally well, resulting in record quarterly gross profit and adjusted EBITDA and the highest level of quarterly earnings per share in more than two years,” said Ira M. Birns, executive vice president and chief financial officer. 

“We have further strengthened our balance sheet and liquidity profile, benefiting from strong operating cash flow generation during the quarter, while enhancing returns to shareholders with our previously announced 17% quarterly dividend increase.”

‘“The adaptability of our diversified portfolio of complementary businesses enabled us to successfully navigate an increasingly turbulent market in 2022 to produce a solid full year result,” stated Michael J. Kasbar, chairman and chief executive officer. 

“We have established a strong foundation for ratable growth and will leverage our global expertise to provide an expanding suite of products and services, including our evolving sustainability offerings, to deliver long-term value to our customers, suppliers and shareholders.”

“In 2022, our Adjusted EBITDA improved significantly year-over-year,” said Ira M. Birns, executive vice president and chief financial officer. 

“Despite higher energy prices in 2022, our strong EBITDA performance further enhanced our liquidity profile which provides greater capacity to invest in growth opportunities, while also continuing to return capital to shareholders through share buybacks and dividends.”

 

Photo credit: World Fuel Services
Published: 27 February, 2023

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Alternative Fuels

Argus Green Marine Fuels Asia eBook released ahead of February bunker conference

eBook features interviews with Microsoft, JERA, IBIA, Anglo American, Sumitomo Corporation, Hafnia, BHP, Global Maritime Forum, DS NORDEN, ADNOC Group, and Standard Chartered Bank.

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Argus Media organises Green Marine Fuels Asia Conference in Singapore

Independent global energy and commodity market intelligence provider Argus Media recently published an eBook as part of a prelude leading towards the Argus Green Marine Fuels Asia Conference on 18 to 19 February in Singapore.

The Pre-conference content: Argus marine fuels Asia eBook features exclusive industry interviews with Microsoft, JERA, IBIA, Anglo American, Sumitomo Corporation, Hafnia, BHP, Global Maritime Forum, DS NORDEN, ADNOC Group, and Standard Chartered Bank.

It offers a peek into their thoughts on infrastructure readiness, the marine fuels shipowners are gravitating towards, LNG decarbonisation pathways, collaboration across the marine fuels value chain, and more.

The eBook is available for download through the image below:

argus media marine fuels asia ebook

The Argus Green Marine Fuels Asia Conference will be held at PARKROYAL COLLECTION Marina Bay, 6 Raffles Boulevard, Singapore 039594 on 18 to 19 February in Singapore.

Key speakers for the event include Kenneth Lim, Assistant Chief Executive (Industry & Transformation), Maritime and Port Authority of Singapore (MPA); Torben Nørgaard, Chief Technology Officer - Energy & Fuels, Maersk Mc-Kinney Moller Center; Jerid Soo, Assistant General Manager (Global Sustainability and ESG), Pacific International Lines; Kazuki Yamaguchi, General Manager and Head, Maritime Energy Solution, Energy Transformation Business Group, Sumitomo Corporation; and Mahua Chakravarty, Editor, Marine Fuels (Asia), Argus.

Related: Argus Media organises Green Marine Fuels Asia Conference in Singapore

 

Photo credit: Argus Media
Published: 17 January, 2024

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Bunker Fuel

TFG Marine, OOMCO form bunker fuel joint venture to supply in Oman ports

TFG-OOMCO will deliver bunker fuels to vessels visiting Oman’s ports of Duqm, Muscat and Sohar and offer customers a reliable and transparent bunkering provider in the Arabian Gulf.

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TFG Marine, OOMCO form bunker fuel joint venture to supply in Oman ports

TFG Marine, the international marine fuel joint venture founded by Trafigura, Frontline and Golden Ocean on Thursday (16 January) said it has established a bunker fuel joint venture with Oman Oil Marketing Company (OOMCO) to supply vessels visiting Oman’s ports of Duqm, Muscat and Sohar.

TFG-OOMCO LLC, incorporated in Oman, will combine the local knowledge of OOMCO with the international footprint, sourcing of all grades of marine fuels, infrastructure and logistics capability of TFG Marine, to offer customers a reliable and transparent bunkering provider in the Arabian Gulf.

Tarik Al Junaidi, CEO of Oman Oil Marketing Company, said: “This partnership aligns with Oman Oil Marketing Company’s efforts to develop the maritime transport and shipping infrastructure in Oman, which is in alignment with the objectives Oman Vision 2040.”

“It underscores our commitment to meeting the increasing demand of compliant, high-quality marine grades of fuel while adhering to the highest international health, safety, and environmental standards.”

“Through our partnership with TFG Marine, the adoption of cutting-edge technologies and the implementation of global best practices in fuel bunkering, we strive to lead towards excellence and sustainability in the bunker fuel business in the Sultanate’s ports.”

Mark Russell, Chief Commercial Officer, TFG Marine, said: “This is TFG Marine’s first venture in the Middle East and we look forward to serving our customers in this region. Oman has a rich history as a maritime nation and is well located close to the main shipping routes connecting the Arabian Gulf and the Indian subcontinent with the rest of the world.”

The announcement follows the signing of an MOU agreement between SOHAR Port and Freezone and TFG Marine, to establish an international bunker fuel supply operation. 

TFG Marine has already deployed bunker vessel Margherita Cosulich to the region to supply vessels at SOHAR’s deep-sea port. The vessel is fitted with a Mass Flow Meter (MFM), calibrated to the ISO 22192 international standard as required by SOHAR Port. SOHAR Port in February 2024 announced a mandate on the alignment of ISO 22192 standards ‘Bunkering of marine fuel using the Coriolis MFM system’ for all marine fuel supply operations within the port.

TFG Marine added it has long been an advocate of the global adoption of calibrated MFMs to bring much-needed transparency to bunkering and encouraging digitalisation in the long-term interests of the bunker industry and helping to further the decarbonisation goals of the shipping industry.

Related: TFG Marine to establish international bunker fuel supply op at SOHAR Port
Related: TFG Marine completes first bunker fuel delivery with “Margherita Cosulich” barge
Related: Metcore signs agreement with SOHAR Port and Freezone for MFM implementation support

 

Photo credit: TFG Marine
Published: 17 January, 2025

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Biofuel

Burando Energies delivers B30 bio bunker fuel to tug “MV Bylgia” in Rotterdam

Firm said it successfully delivered ISCC-certified B30 biofuel blend, derived from renewable feedstocks, to Heerema’s Anchor Handling Tug “MV Bylgia” at Port of Rotterdam.

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Burando Energies delivers B30 bio bunker fuel to tug “MV Bylgia” in Rotterdam

Burando Energies on Thursday (16 January) announced it successfully delivered ISCC-certified biofuel to Heerema’s Anchor Handling Tug MV Bylgia at the Port of Rotterdam.

The delivered B30 biofuel blend, derived from renewable feedstocks, will help reduce carbon emissions by an estimated 25% (well-to-wake)—an impactful move in Heerema’s ongoing commitment to sustainability.

“This delivery not only reflects our commitment to offering sustainable energy solutions but also strengthens our partnership with Heerema in their green ambitions,” said Duncan Huisman, Sustainable Bunker Trader at Burando Energies. 

“We are proud to contribute to initiatives that prioritise the well-being of our planet and future generations.”

Burando Energies said it will continue to focus on innovation and sustainability, striving to provide energy solutions that drive both environmental progress and business success.

 

Photo credit: Burando Energies
Published: 17 January, 2025

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