Global energy management company World Fuel Services (WFS) reported a 38.6% year-on-year increase in net profit for the second quarter (Q2) of 2022 on Thursday (July 28), buoyed by earnings from its maritime segment due to market volatility which led to high bunker fuel prices and a constrained credit environment.
The company recorded net income of $24.4 million in the second quarter of 2022, higher than the net income of $17.6 million recorded in the second quarter of 2021.
Revenue from its combined aviation, land and maritime segments in the second quarter of 2022 was $17.1 billion, a 109% grow from revenue of $7.1 billion in the second quarter of 2021.
Specifically, the maritime segment generated gross profit of $78.2 million in Q2 2022, up 244% year-on-year from $22.7 million in Q2 2021.
In total, WFS sold 4.89 million metric tons (mt) of bunker fuel during the second quarter of 2022, a 6% year-on-year increase from 4.6 million mt of marine fuels during of the similar period last year.
“We delivered strong results in the second quarter, demonstrating the strength and diversification of our business model, despite significant volatility in global energy markets,” said Michael J. Kasbar, Chairman and Chief Executive Officer.
“Although we were impacted by a severe stall for most of the quarter in aviation, our maritime segment generated record gross profit on the back of market volatility which led to exceptionally high bunker fuel prices and to a constrained credit environment.”
“We generated our highest level of quarterly EBITDA since the start of the pandemic, despite the negative impacts on prices from our aerospace business during the second quarter due to an extreme backwardation, again demonstrating the resilience of our business and the value of our diverse portfolio of products and service offerings. said Ira M. Birns, executive vice president and chief financial officer.
“While fuel prices and volumes increased further during the second quarter, we generated positive operating cash flow and our liquidity position remains strong.”
“This allows us to continue to allocate capital to finance organic and value-creating investments that underpin our strategic vision to support our customers and suppliers in accelerating the energy transition, while continuing to return capital to shareholders through buyouts and dividends.”
Photo credit: World Fuel Services
Posted: August 1, 2022
