• Follow Us On Our Preferred Social Media Platform:

WFS marine sales volume approximately 12% down in FY 2019

28 Feb 2020

New York-listed oil and bunker trading firm World Fuel Services (WFS) on Thursday (27 February) recorded a 40% on year growth in net profit due to the benefits offered by its diversified business model, it said.

It posted net profit of $178.9 million for the financial year (FY) of 2019, an increase from net profit of $127.7 million in FY 2018.

Total revenue generated across its aviation, land and marine fuel segments was $36.82 billion in FY 2019, 7% down from revenue of $39.75 billion in FY 2018.

“We are very pleased with our performance in 2019 as we continued to leverage the strength of our diversified business model,” stated Michael J. Kasbar, Chairman and CEO of WFS.

“We will continue to aggressively focus on driving growth opportunities, increasing the value of our global platform and improving operating leverage across the enterprise.”

“Our marine segment posted yet another quarter of outstanding results, closing out a year that produced the strongest annual marine earnings since 2015,” added Kasbar in a recent earnings call.

Our experienced and talented marine team did an exceptional job of assisting customers in managing their energy supply before the IMO 2020 low-sulphur regulations that took effect on January 1st.

Specially, the marine fuel segment posted a revenue of $8.06 billion in FY 2019, 13% down from revenue of $9.25 billion in FY 2018.

Gross profit of the similar segment was $1.11 billion in FY 2019, a 9% increase from gross profit of $1.02 billion in FY 2018.

Total sales volume for the marine fuel segment was 20.9 million metric tonnes (mt) in FY 2019, a 11.9% fall from sales of 23.72 million mt in FY 2018.

“With the new IMO regulations now in place, we estimate that nearly 85% of marine fuel to be sold in the first quarter will be either low sulphur fuel oil or marine gas oil, that’s up from approximately 55% in the fourth quarter,” notes Kasbar.

“While the unit price for low sulphur fuel oil and marine gas oil have declined over the past several weeks, these prices remain substantially higher than the unit price for high sulphur fuel oil today.

“This should provide opportunities to again drive strong profitability in the first quarter, and we therefore, expect marine results to reflect significant year-over-year improvement, compared to the first quarter of 2019.”

Earlier reports of WFS’ financial performance are as follows:

Related: WFS marine segment gross profit jumps 24% on year for Q3 2019
Related: WFS Q2 profit increases by 29%, ‘extremely well prepared’ for IMO 2020
Related: WFS expands unsecured credit facility to $1.8 billion ahead of IMO 2020
Related: WFS posts ‘solid start to the year’ with 37% increase in Q1 profit
Related: WFS returns to profit for 2018 in ‘year of continuing transformation’
Related: WFS records ‘better than expected performance’ in marine segment
Related: WFS Q2 bunker sales volume 13% down on year
Related: WFS posts Q1 net profit on increase in oil prices, offset by lower volume
Related: WFS posts net loss of $142.0 million in 2017


Photo credit: World Fuel Services

Published: 28 February, 2020

Related News

Featured News

Our Industry Partners

  • argus

PR Newswire