World Kinect records 33% lower FY 2023 gross profit for bunker fuels segment

Miami-based global energy management firm World Kinect on Thursday (22 February) posted lower fourth quarter (Q4) and full year (FY) 2023 gross profits for its marine fuels segment.

The bunker segment recorded gross profit of USD 4.0 million, a decrease of 21% on year, for Q4 2023 primarily attributable to increased competition resulting from lower bunker fuel prices, together with softening demand driven by changes in the global macroeconomic environment.

The similar segment reported gross profit of $172.6 million in FY 2023, a decrease of 33% when compared to FY 2022.

Marine fuels sales were 4.3 million mt and 4.7 million mt for the three months ended 31 December 2023 and 2022, respectively; and 16.8 million mt and 19.1 million mt for the year ended 31 December 2023 and 2022, respectively.

“Although we experienced non-recurring financial impacts this quarter, we delivered solid core operating results while further advancing our portfolio and platform to better support our customer and supplier requirements for conventional and renewable products and services,” said Michael J. Kasbar, Chairman and Chief Executive Officer.

Overall, World Kinect posted net loss of USD 35 million in Q4 2023, compared to net profit of USD 21 million for the similar period in 2022.

The firm reported net profit of USD 54 million in FY 2023, 54% lower than net profit of USD 116 million seen in FY 2022.

Related: World Kinect marine fuels segment gross profit down 54% on year to USD 74.8 million

Photo credit:  World Kinect
Published: 27 February 2024