New York-listed oil and bunker trading firm World Fuel Services (WFS) on Thursday (29 October) recorded net income of USD 82.4 million in the third quarter of 2020 (Q3 2020), a 70% increase from net income of USD 48.2 million during Q3 2019.
Net income increased despite an overall decrease of gross profit in its land, aviation and marine segments.
“Through continued focus on working capital management, we generated $246 million of cash flow from operations during the third quarter and have now generated nearly $500 million of cash flow from operations during the first nine months of the year,” explained Ira M. Birns, executive vice president and chief financial officer.
“Combined with the proceeds received from the sale of the Multi Service business, we significantly reduced our debt balance during the quarter, resulting in a record level of liquidity.”
In Q3 2020, WFS’s aviation segment generated gross profit of $97.6 million, a decrease of 38% on year; its land segment generated gross profit of $84.3 million, a decrease of 12% year-over-year.
The marine segment generated gross profit of $32.0 million during Q3 2020, a decrease of 40% year-over-year, principally attributable to lower volume and profitability due to a decline in demand as a consequence of the pandemic and lower average fuel prices.
In Q3 2020, WFS recorded bunker sales of 4.4 million metric tonnes (mt), down 20.9% from 5.5 mt recorded in Q3 2019.
Reports of WFS previous year financial performance are as follows:
Related: WFS Q2 2020 results report operating segments ‘negatively impacted’ by Covid-19
Related: WFS marine segment posts highest level of quarterly gross profit in more than five years
Related: WFS marine sales volume approximately 12% down in FY 2019
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
Photo credit: World Fuel Services
Published: 30 October, 2020
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