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WFS posts ‘solid start to the year’ with 37% increase in Q1 profit

WFS sold 5.2 million metric tonnes of marine fuel in Q1 2019, down 575,000 mt compared to Q1 2018.
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New York-listed oil and bunker trading firm World Fuel Services (WFS) posted a 37% increase in profit for the first quarter (Q1) ended 31 March 2019.

It recorded net profit of $42.8 million in Q1 2019, compared to profit of $31.2 million in Q1 2018, show latest figures.

Total revenue from its aviation, land and marine segments was $8.68 billion in Q1 2019, 5.5% lower than revenue of $9.18 billion during the similar quarter last year.

“The year-over-year decrease in revenue is principally driven by the decline in volumes in our marine and land segments,” explained WFS Chairman and CEO Michael Kasbar in a recent earning call.

Specifically, the company’s marine segment posted gross profit of $35.2 million in Q1 2019, higher than gross profit of $31.2 million in Q1 2018.

Its marine segment recorded revenue of $1.93 billion in Q1 2019, down from revenue of $2.03 billion in Q1 2018.

“Our marine segment delivered positive year-over-year results and made judicious choices about our portfolio while maintaining a focus on cost efficiency and prudent risk management,” he notes.

“Gross profit margins remain strong in Q1 and our focus on returns on capital is designed to continue that trend.

“We are leveraging the supply and logistics competencies we already have in place across all of our businesses to capture internal synergies, which will further augment our efforts to address the industry challenge, its challenge is inherent within the IMO 2020 low-sulphur regulations.”

In Q1 2019, WFS sold 5.2 million metric tonnes (mt) of marine fuel, down 575,000 mt compared to the first quarter of last year.

“The volume reduction principally related to our continued efforts to exit certain low margin business activities in Asia,” said Kasbar who was optimistic of WFS’s performance for its marine segment, moving forward.

“The marine team continues to focus on growth opportunities, which means our return thresholds including the identification and penetration of new markets,” he adds.

“Our team continues to execute well with core margins and returns remaining well above the prior year.

“Looking ahead to the second quarter, we expect marine gross profit to be similar to the first quarter, which would again, drive solid year-over-year improvement.”

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: 26 April, 2019
 

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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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May 23, 2025

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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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May 23, 2025

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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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May 23, 2025

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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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