New York-listed World Fuel Services (WFS) expects its marine fuels business to produce better returns in the long term due to current reduction activities.
“As we look to the first quarter [of 2018] for marine, we expect gross profit to be relatively flat, but sequential marine result should improve driven principally by the benefit of additional cost reduction activities,” says Ira Birns, Executive Vice President and Chief Financial Officer of WFS, in a recent financial earnings conference call.
WFS’ marine segment generated fourth quarter gross profit of $29 million in 2017, down $6 million or 16% year-over-year; volume in the similar segment was 6.1 million metric tonnes, down approximately 1.5 million metric tons or 20% year-over-year.
“The largest drivers of the volume reduction relate to our operations in the Asia-Pac region and our decision to exit certain markets we have seen continued market pressure and weakness as well as our continuous efforts to reduce activity in regions where we have not been achieving satisfactory returns on capital,” Birns adds.
Michael Kasbar, Chairman and Chief Executive Officer of WFS, believes the company’s marine segment will produce better results in the longer term.
“Our right sized marine business should yield better returns and it's poised in the longer term to capitalise on the continuing need in the market for a comprehensive service and distribution partner,” he notes.
“We are well positioned to provide any solution for 2020 when low sulphur regulations commence.”
Moving ahead, Kasbar indicates that WFS may be exploring to enter the physical bunker supply business.
“I don't know if we have more of the markets to exist. We are being mindful of returns,” he said when responding to a query of marine volumes in the first quarter of 2018.
“So there has been some changes that is not a surprise to folks that have been following the marine business. So, we are looking as I said to model or physical business.”
Manifold Times earlier reported WFS posting net loss of $142 million in 2017 due to “challenging market conditions” in the marine and land segments.
Related: WFS posts net loss of $142.0 million in 2017
Published: 26 February, 2018
The quantity in its stockpile on 30 June was 275,000 mt of LSFO and the marked-to-market value was USD -32 million, a much improved position from the last quarter.
Kannegaard’s job scope includes overseeing operations at Monjasa’s Cyprus office, Portland Port (UK) and Skaw (Denmark) oil terminals, and a fleet of four tankers.
Indonesian ports unscathed after earthquake; still tight availability in Hong Kong; Zhoushan grapples with more weather disruptions.
Order is the second of two new 103 metre long LNG bunkering barges built at the Fincantieri Bay Shipbuilding yard for Polaris New Energy.
MOU covers cooperation in the fields of marine lubricant procurement, ship chartering and spot business.
In total, 4.29 million mt of various bunker fuels were sold at the republic in December, less than 4.47 million mt recorded during December 2019.
“In TotalEnergies, we already have projects along the e-Fuel value chain, from green electricity and green / blue hydrogen to e-Fuel production that will be integrated along the marine fuels value chain in time to come,” shares Louise Tricoire.
Buyers can nominate deliveries on platform and plan operations together with suppliers following ‘one single truth’ concept with all players aware of what has been agreed when and by whom, says DNV spokesman.
Rotterdam’s intention to mandate the usage of MFMs goes down well with licensed bunker supplier VT Group; MFM providers supportive of move but stressed continuous monitoring is needed for optimum performance.
Cost of alternative bunker fuels, bunker operations and technology advancement are some considerations to be examined by the maritime industry, says Neo, director of SDE International Pte Ltd.
Kim Hyung Joon and Han Donghoon were planning to join the Singapore entities of Hartree Group - either Hartree Partners Singapore Pte Ltd or Hartree Marine Fuels - in October, discovered management.
‘When you think of Helmsman on the next occasion, think of us as lawyers with expertise in various fields. Come to us before a problem develops. It’s the process that matters,’ says Tang Chong Jun, Executive Director.
