World Kinect marine fuels segment gross profit down 46.3% on year to USD 42 million

Business

Published Thu, 3rd August 2023
by Admin

Decrease principally due to significant benefit from near record bunker fuel prices and heightened market volatility in the second quarter of 2022, says firm, previously known as World Fuel Services.

New York-listed global energy management company World Kinect Corporation, which was previously known as World Fuel Services Corporation, recorded a 35.6% on year decrease in net income for the second quarter (Q2) of 2023 due to loss from its marine segment.

The company posted net income of USD 29.9 million in Q2 2023, an increase from the net income of USD 24.4 million seen during Q2 2022.

Revenue for its combined aviation, land and marine segments in Q2 2023 was USD 11 billion, a 35.7% decrease from revenue of USD 17.1 billion in Q2 2022.

Specifically, the marine segment generated gross profit of USD 42 million in Q2 2023, down 46.3% on year from USD 78.2 million in Q2 2022.

In total, WFS sold 4.2 million metric tonnes (mt) of bunker fuel during Q2 2023, a decrease of 14.2% on year from 4.9 million mt of marine fuels during the similar period of last year.

“Gross profit of USD 42 million, a decrease of 46% year-over-year, principally due to the significant benefit from near record bunker fuel prices and heightened market volatility in the second quarter of 2022,” the firm said in its report.

According to its call presentation of Q2 2023 results, the bunker fuel volumes were down year-over-year primarily due to declines in activity in the container market but said margins ‘remain well ahead of historical averages’.

For the 2023 outlook for its marine segment, the firm expects gross profit to be generally flat sequentially, and down year-over-year, similar to the decline experienced in the second quarter 2022 when bunker prices were record highs.

Manifold Times previously reported World Fuel Services Corporation changing its corporate name to World Kinect Corporation. The firm said the change is intended to better reflect the Company’s ongoing transformation into a more resilient, diversified energy and solutions provider.

Photo credit: World Kinect Corporation
Published: 3 August, 2023

World Kinect marine fuels segment gross profit down 46.3% on year to USD 42 million

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