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WFS records ‘better than expected performance’ in marine segment

Marine segment generated third quarter gross profit of $43 million, an increase of $13 million on year.

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New York-listed global transportation fuels distributor World Fuel Services (WFS) posted profit in the third quarter (Q3) of 2018, compared to losses during the similar quarter last year, it says.

The firm recorded net profit of USD $38.2 million in Q3 2018, against net loss of USD $38.5 million in Q3 2017.

Revenue was USD $10.4 billion in Q3 2018, higher than revenue of USD $8.5 billion during the similar period last year.

“Our third quarter results were highlighted by record profitability in our aviation segment as well as better than expected performance in our marine segment,” stated Michael J. Kasbar, chairman and chief executive officer of World Fuel Services Corporation.

“We continue to focus on operating efficiencies, portfolio refinement and organic growth initiatives, which has contributed to improved operating performance in 2018 and should position us well for growth in 2019 and beyond.”

Specifically, the company’s marine segment generated revenue of USD $2.5 billion in Q3 2018, higher than USD $2.1 billion in Q3 2017.

“Volume in our marine segment for the third quarter was 6 million metric tons down approximately 850,000 metric tons or 13% year-over-year principally due to discontinuing certain low margin activities during 2018,” said Ira Birns, Executive Vice President and Chief Financial Officer at WFS.

“Our marine segment generated third quarter gross profit of $43 million, that's an increase of $13 million or 41% year-over-year representing the highest level of marine gross profit in a single quarter since 2015.

“The significant year-over-year gross profit increase was principally related to stronger margins driven by the sharp rise in bunker fuel prices and an increasingly constrained credit environment which further enhances the value of our business model. Additionally, we benefited from certain higher margin seasonal business during the third quarter.”

Volume wise, the company sold a total of 5.97 million metric tonnes (mt) of marine fuels in Q3 2018, compared to 6.82 million mt in Q3 2017.

“Looking ahead to the fourth quarter, we expect marine results to decline driven principally by the drop off in seasonal activity. Therefore, we anticipate our marine results in the fourth quarter that would be in line with, with somewhat better than our second quarter results,” he adds.

“In closing, our business performed very well in the third quarter. Highlighted by record profitability in our aviation segment and better than expected results in our 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 October, 2018

 

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Methanol

China: Chimbusco completes bunkering op with domestically produced green methanol

Chimbusco delivered 1,000 mt of domestically produced green methanol bunker fuel to “COSCO Shipping Yangpu”, China’s first 16,000 TEU methanol dual-fuel container ship, from 11 to 12 July.

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China: Chimbusco completes bunkering op with domestically produced green methanol

China Marine Bunker (PetroChina) Co Ltd (Chimbusco) on Monday (14 July) said it successfully completed a green methanol bunkering operation for COSCO Shipping’s first methanol-dual-fuel container vessel at Shengdong Terminal in Yangshan Port. 

Chimbusco delivered 1,000 metric tonnes (mt) of domestically produced green methanol fuel to COSCO Shipping Yangpu from 11 to 12 July. 

COSCO Shipping Yangpu is the first methanol-dual-fuel container vessel invested and built by COSCO Shipping Group. The company previously deemed the vessel China’s first 16,000 TEU methanol dual-fuel container ship. 

 With an overall length of 366 meters and a beam of 51 metres, it has a maximum container capacity of 16,136 TEUs. 

The vessel employs an advanced dual-fuel propulsion system that enables flexible switching between methanol and traditional fuels. When using green methanol as fuel, it significantly reduces carbon emissions and pollutant discharges during operations, injecting strong impetus into the green transformation of China’s shipping industry.

“This green methanol bunkering operation, jointly completed by COSCO Shipping Lines, CHIMBUSCO, and SIPG Energy Shanghai, represents another proactive exploration by CHIMBUSCO in the field of green methanol bunkering at Shanghai Port,” Chimbusco said.

“It also marks another significant step by COSCO Shipping Group in advancing the green and low-carbon transformation of the shipping industry and integrating the entire methanol supply chain.”

“As a leading domestic marine fuel supplier, CHIMBUSCO actively responded to shipowners’ demand for green methanol bunkering and worked closely with COSCO Shipping Lines, SIPG Energy Shanghai and other entities to develop a detailed supply plan and emergency response plan in advance, in accordance with relevant bunkering standards for marine methanol fuel.”

Manifold Times previously reported Chimbusco completing a methanol bunkering operation of the same vessel in Shanghai on 11 May. 

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

Related: Chimbusco completes bunkering op of China’s first 16,000K TEU methanol DF boxship
Related: COSCO Shipping names China’s first 16,000 TEU methanol dual-fuel container ship

 

Photo credit: Chimbusco Dalian
Published: 17 July 2025

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Methanol

Shanghai Electric starts producing first batch green methanol bunker fuel with new plant

New batch of green methanol will soon arrive at Shanghai Port and be delivered to CMA CGM to enter the international market as a marine fuel.

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Shanghai Electric starts producing first batch green methanol bunker fuel with new plant

Shanghai Electric on Thursday (17 July) announced its Jilin Taonan Green Methanol Project, China’s first facility to fully integrate wind-to-hydrogen with biomass gasification, is now producing its first batch of ISCC-EU certified green methanol.

This batch of green methanol will soon arrive at Shanghai Port and be delivered to CMA CGM to enter the international market as a marine fuel.

The company said the milestone event marked a major national breakthrough in the field of green hydrogen-based fuels. 

Shanghai Electric will use this project as a catalyst to build a world-leading, full-industry-chain platform for green fuels, to accelerate the development of an integrated industrial ecosystem encompassing green energy, green hydrogen, green methanol and green applications.

The company will continuously improve new energy power generation, water electrolysis for hydrogen production, biomass gasification, carbon capture, green ammonia, and to promote the large-scale application of green fuels in shipping, aviation, chemical industry and other fields.

At a ceremony, Cai Dong, member of the Standing Committee of the Jilin Provincial Party Committee and Executive Vice Governor, launched the start of production of the fuel. 

As the first large-scale commercial green methanol project in China, the Taonan project has an annual production capacity of 50,000 metric tonnes in the first phase.

“It is the first green methanol project in China to pass the EU ISCC full-process certification and to market to the international market,” the company said. 

 

Photo credit: Shanghai Electric
Published: 17 July 2025

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Business

Singapore-based Seatrium secures USD 400 mil sustainability-linked revolving credit facility

Credit facility will significantly contribute to Seatrium’s long-term goals of achieving its ESG targets, further bolstering its commitment to sustainable development in the offshore, marine and energy sector.

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Singapore-headquartered marine engineering firm Seatrium on Tuesday (15 July) said its wholly-owned subsidiary Seatrium Financial Services Pte. Ltd. (SFS) has successfully secured a USD 400 million sustainability-linked revolving credit facility with United Overseas Bank (UOB).

This credit facility, anchored in sustainability-linked principles, aligns with Seatrium’s Sustainable Finance Framework and includes revolving credit features which will strongly enhance the Group’s liquidity and financial flexibility. It will significantly contribute to Seatrium’s long-term goals of achieving its Environmental, Social, and Governance (ESG) targets, further bolstering its commitment to sustainable development in the offshore, marine and energy sector.

Dr Stephen Lu, Seatrium’s Chief Financial Officer, said, “Our continued partnership with UOB marks an important milestone in advancing our financial agility and deepening our commitment to environmental stewardship. By linking our financing framework to clearly defined sustainability targets, we are not only reinforcing accountability but also embedding climate-conscious principles into our capital strategy. This alignment will actively support our decarbonisation goals and longterm value creation.”

Ms Cindy Kong, Managing Director of Group Corporate Banking at UOB, said: “As the global energy transformation accelerates, sustainability-linked financing is playing a crucial role in driving the shift toward decarbonisation. We are proud to partner Seatrium in championing forward-looking initiatives within the global renewable energy segment. Together, we aim to foster innovation while paving the way for responsible and sustainable business growth globally.”

Since 2023, Seatrium has successfully secured over SGD 3 billion in sustainability-linked loans and green financing, further establishing itself as a global provider of sustainable engineering solutions for the offshore, marine, and energy sectors. 

“The Group is steadfast in its commitment to fulfilling its Sustainability Vision 2030, which is centred on empowering clients to minimise their carbon footprints through energy-efficient and environmentally sustainable vessels and offshore platforms.”

 

Photo credit: Scott Graham
Published: 17 July 2025

 

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