New York-listed global transportation fuels distributor World Fuel Services (WFS) ended its financial year of 2018 by returning into profit on year.
It recorded net profit of $127.7 million in 2018 compared to net loss of $170.2 million in 2017, it said.
Revenue in 2018 was $39.8 billion, 18.0% higher than revenue of $33.7 billion in 2017.
“2018 was a year of continuing transformation for World Fuel and our actions advanced our value creation strategy of continuous cost management and sharpening our portfolio to drive enhanced returns,” stated Michael J. Kasbar, chairman and chief executive officer of World Fuel Services Corporation.
“Our business performed well in 2018, led by record results in our aviation segment and a solid rebound in profitability in marine.”
“Our marine segment generated gross profit of $145.8 million, an increase of 16% year-over-year, principally related to stronger performance in our core resale operations,” he adds.
The company’s marine segment generated revenue of $9.2 billion in 2018, higher than $8.2 billion in 2017.
It sold a total 6.26 million metric tonnes (mt) of marine fuel in 2018, compared to 7.01 million mt in 2017.
“There is a lot to talk about with 2020 in terms of who is prepared, who is not, all of the different complexities that you are going to have with storage,” said Kasbar in a recent earnings call, as quoted by Seeking Alpha.
“There is going to be a lot more planning ahead. There is going to be more frequent bunkering. Some folks are going to be exposed to risk just because of what's expected to be higher prices.
“You may have some compatibility issues on some technical services that are going to be required. But our marine team and almost every marine team, ship owners are going to be pretty busy around the world sorting out 2020.”
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: 22 February, 2019
