World Kinect marine fuels segment gross profit down 6.9% on year for Q1 2024

New York-listed global energy management company World Kinect Corporation on Thursday (26 October) recorded a 20.2% on year decrease in net income for the first quarter (Q1) of 2024.

The company posted net income of USD 27.4 million in Q1 2024, higher than net income of USD 22.8 million seen during Q1 2023.

Revenue for its combined aviation, land and marine segments in Q1 2024 was USD 10.9 billion, a 13% decrease from revenue of USD 12.5 billion in Q1 2023.

Specifically, the marine segment generated gross profit of USD 48.4 million in Q1 2024, down 6.9% on year from USD 52 million in Q1 2023.

In total, WFS sold 4.3 million metric tonnes (mt) of bunker fuel during Q1 2024, marking no changes from 4.3 million mt of marine fuels during the similar period of last year.

“In Marine, volumes were up slightly both sequentially and year-over-year. Gross profit, however, decreased 7%, driven principally by the reduction in market volatility when compared to what we experienced through 2022 and into the first quarter of 2023,” Michael Kasbar, Chairman and CEO, said in a recent earnings call as quoted by Seeking Alpha.

“Sequentially, however, gross profit was up 10%, demonstrating our team’s continued focus on driving solid returns in the current interest rate environment.”

“As we look to the second quarter, while we expect Marine gross profit to decline sequentially, principally driven by seasonality, year-over-year comparisons start to normalise, as market volatility tapered off by the second quarter of last year. So, we are expecting second quarter results for Marine to be generally in line with the prior year based on what we’ve seen quarter-to-date.”

Photo credit: World Kinect Corporation
Published: 29 April 2024