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WFS marine fuels segment gross profit up 11% on year to USD 52 million

While bunker fuel prices have declined, marine benefited from a significantly higher interest rate and credit constrained credit environment in the first quarter, according to Ira Birns of WFS.

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Global energy management company World Fuel Services (WFS) on Thursday (27 April) recorded a 13% on year decrease in net income for the first quarter (Q1) of 2023 supported by gains from its marine segment.

The company posted net income of USD 22.8 million in Q1 2023, lower than net income of USD 26.3 million seen during Q1 2022.

Revenue for its combined aviation, land and marine segments in Q1 2023 was USD 12.5 billion, a 1% jump from revenue of USD 12.4 billion in Q1 2022.

Specifically, the marine segment generated gross profit of USD 52.0 million in Q1 2023, up 11% on year from USD 47.0 million in Q1 2022.

In total, WFS sold 4.3 million metric tonnes (mt) of bunker fuel during Q1 2023, a decrease of 9% on year from 4.7 million mt of marine fuels during the similar period of last year.

“The Marine segment generated first quarter gross profit of USD 52 million. That’s an 11% increase when compared to the first quarter of last year. While bunker fuel prices have declined, marine benefited from a significantly higher interest rate and credit constrained credit environment in the first quarter,” said Ira Birns, EVP and CFO, WFS during a recent earnings call as quoted by Seeking Alpha.

“As we look ahead to the second quarter, margins are expected to remain well ahead of historical averages. However, gross profit is expected to decline sequentially driven principally by flattening prices and reduce market volatility.”

Birns said despite it being a seasonally weak quarter for the firm in the first quarter, it delivered solid overall results. 

“Aviation delivered very strong performance in what is traditionally the weakest quarter for air travel, or land liquid fuels activity in North America was impacted by extreme weather on natural gas and power businesses continued to perform well. Marine continued to outperform historical averages with very strong operating margins. And we are now entering our seasonally strongest second and third quarters and remain optimistic about our opportunities to deliver strong results for the full year,” Birns added. 

Related: WFS 2022 marine fuels segment records 155% on year increase in annual gross profit
Related: WFS Q3 2022 marine fuels segment gross profit up 241.6% on year to USD 74.8 mil
Related: WFS marine segment gross profit records 244% on year jump in Q2 2022
Related: WFS marine segment gross profit records 85% on year jump in Q1 2021
Related: WFS marine segment gross profit records 85% on year jump in Q1 2021

 

Photo credit: World Fuel Services
Published: 2 May, 2023

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Methanol

Chimbusco completes bunkering op of China’s first 16,000K TEU methanol DF boxship

“COSCO SHIPPING YANGPU” was supplied approximately 900 metric tonnes of methanol marine fuel by Chimbusco in Shanghai on 11 May.

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Chimbusco completes bunkering of China’s first 16,000K TEU methanol DF boxship

China Marine Bunker (PetroChina) Co Ltd (Chimbusco) completed a bunkering operation of the first domestically manufactured methanol dual-fuel container ship in Shanghai on 11 May, according to COSCO Shipping on Thursday (15 May). 

COSCO SHIPPING YANGPU was supplied approximately 900 metric tonnes (mt) of methanol marine fuel by Chimbusco at Pier 1 of COSCO Shipping Heavy Industry. 

The operation started on 7 May but was postponed due to unfavourable weather from the Jianghuai Cyclone.

Chimbusco completes bunkering of China’s first 16,000K TEU methanol DF boxship

COSCO Shipping said the operation marked an important achievement in green and low-carbon transformation in shipping, from ship construction and ecological layout of the entire green fuel industry chain of the company. 

Manifold Times previously reported the naming ceremony of China’s first 16,000 TEU methanol dual-fuel container ship, COSCO SHIPPING YANGPU in Yangzhou.

The methanol dual-fuel container ship named was the first in a series of vessels from COSCO Shipping Holdings, constructed by COSCO Shipping Heavy Industry Yangzhou. 

Related: COSCO Shipping names China’s first 16,000 TEU methanol dual-fuel container ship

 

Photo credit: Cosco Shipping
Published: 23 May, 2025

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Vessel Arrest

Malaysia: MMEA detains Thai tanker off Kelantan after shown suspicious documents

Initial checks revealed that insurance documents and other documents related to the vessel appeared suspicious and all six crew members on board failed to provide valid identification documents.

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Malaysia: MMEA detains Thai tanker off Kelantan after shown suspicious documents

The Kelantan Malaysian Maritime Enforcement Agency (MMEA) on Thursday (22 May) said it has detained a suspicious tanker at about 100 nautical miles from the Tok Bali estuary on 20 May. 

Kelantan MMEA director, Maritime Captain Erwan Shah Soahdi said an MMEA asset had detained the tanker while patrolling the Malaysia-Vietnam border. 

The vessel was detected after displaying several suspicious signs at around 1 pm before it was successfully detained 20 minutes later.

Malaysia: MMEA detains Thai tanker off Kelantan after shown suspicious documents

“Initial checks revealed the vessel has six crew members, including a captain and all are believed to be Thai citizens aged between 38 and 70,” he said.

It was also found that the insurance documents and other documents related to the vessel appeared suspicious and all the crews on board the vessel failed to provide valid identification documents during the check. 

The case is being investigated under the Immigration Act 1959/63 and the Merchant Shipping Ordinance 1952.

 

Photo credit: Malaysian Maritime Enforcement Agency
Published: 23 May, 2025

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LNG Bunkering

Shell wraps up its first LNG bunkering operation for TUI Cruises in Barcelona

Milestone was achieved by Shell’s LNG bunker barge “Haugesund Knutsen” supplying the “Mein Schiff Relax” cruise ship at Port of Barcelona, says Dexter Belmar of Shell.

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Shell wraps up its first LNG bunkering operation for TUI Cruises in Barcelona

Energy giant Shell recently conducted its first LNG bunkering operation for TUI Cruises in Barcelona, according to Dexter Belmar, General Manager and Head of Global Downstream LNG on Thursday (22 May).

He said the milestone was achieved by Shell’s LNG bunker barge Haugesund Knutsen supplying the Mein Schiff Relax cruise ship.

“Barcelona, one of Europe and the Mediterranean’s leading cruise ports, is also a key LNG bunkering location for Shell as we help more cruise ships transition to lower-emission fuels,” he said in a social media post. 

“A huge thank you to Royal Caribbean Group for their trust, and to Knutsen and Port of Barcelona for their collaboration in making this bunkering safe and efficient.”

Shell wraps up its first LNG bunkering operation for TUI Cruises in Barcelona

Belmar said LNG is leading the way as the preferred alternative bunker fuel in the cruise industry. 

“At Shell, we’re proud to support LNG fuelling needs at 26 locations worldwide, including major cruise ports like Bahamas, Barcelona, Canaveral, Everglades, Jamaica, Miami, Singapore, Southampton, and Tenerife,” he added. 

 

Photo credit: Shell
Published: 23 May, 2025

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