Global energy management company World Fuel Services (WFS) on Thursday (28 July) recorded a 38.6% on year increase in net income for the second quarter (Q2) of 2022 supported by gains from its marine segment due to market volatility that led to high bunker fuel prices and a constrained credit environment.
The company posted net income of USD 24.4 million in Q2 2022, higher than net income of USD 17.6 million seen during Q2 2021.
Revenue for its combined aviation, land and marine segments in Q2 2022 was USD 17.1 billion, a 109% jump from revenue of USD 7.1 billion in Q2 2021.
Specifically, the marine segment generated gross profit of USD 78.2 million in Q2 2022, up 244% on year from USD 22.7 million in Q2 2021.
In total, WFS sold 4.89 million metric tonnes (mt) of bunker fuel during Q2 2022, an increase of 6% on year from 4.6 million mt of marine fuels during the similar period of last year.
“We generated solid results in the second quarter, demonstrating the strength and diversification of our business model, despite significant volatility experienced in the global energy markets,” said Michael J. Kasbar, chairman and chief executive officer.
“While we were impacted by severe backwardation throughout most of the quarter in aviation, our marine segment delivered record gross profit driven by market volatility that led to exceptionally high bunker fuel prices and a constrained credit environment.”
“We generated our highest level of quarterly EBITDA since the pandemic began, despite the negative pricing impacts to our aviation business during the second quarter from extreme backwardation, again demonstrating the resiliency of our business and the value of our diversified portfolio of products and service offerings,” said Ira M. Birns, executive vice president and chief financial officer.
“While fuel prices and volumes increased further during the second quarter, we generated positive operating cash flow and our liquidity position remains strong.”
“This enables us to continue allocating capital to fund organic and value-creating investments which underpins our strategic vision to support our customers and suppliers in accelerating the energy transition, while we also continue to return capital to shareholders through buybacks and dividends.”
Photo credit: World Fuel Services
Published: 1 August, 2022
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