Multiple Hours | WFS Marine Segment Gross Profit Records 85% Year Jump in Q1 2021


Global energy management company World Fuel Services (WFS) on Thursday (April 28) posted a 39% year-on-year increase in net profit for the first quarter (Q1) of 2022, supported by gains in its maritime segment. .

The company recorded a net profit of $26.3 million in the first quarter of 2022, higher than the net profit of $18.9 million observed during the first quarter of 2021.

Revenue from its combined aviation, land and maritime segments in the first quarter of 2022 was $12.5 billion, a 109% increase from revenue of $6.0 billion in the first quarter of 2021.

Specifically, the maritime segment generated gross profit of $47.0 million in the first quarter of 2022, up 85% year-on-year from $25.4 million in the first quarter of 2021.

In total, WFS sold 4.7 million metric tons (mt) of bunker fuel during the first quarter of 2022, an increase of 11% year-on-year from 4.2 million mt of marine fuel during of the similar period last year.

“Our marine business performed extremely well in a sharply rising bunker fuel price environment where average bunker prices increased 30% sequentially,” said Michael J. Kasbar, president and chief executive officer of WFS in a recent earnings call, quoted by Seeking Alpha.

“Unlike our variation business, most of our shipping trades are executed on a spot basis and we are earning higher returns through higher prices, resulting in extraordinary performance compared to recent periods.”

Overall, the strong results for the quarter were driven by increased returns from WFS’ core resale business in a tight credit environment caused by the significantly higher price of bunker fuel during the quarter, explains Ira Birns, EVP and CFO, WFS.

“As we look to the second quarter, we expect marine gross profit to remain strong as the price of bunker fuel remains at or above first quarter averages,” she forecast.

“If this trend continues, Navy’s second quarter results should again be materially ahead year over year and relatively consistent with first quarter results.”

Reports on the previous year’s financial performance of the WFS are as follows:

Related: WFS Marine Fuels segment gross profit down 34% YoY to $100.3m
Related: WFS Marine Fuels Segment Gross Profit in Q3 2021 Down 32% YoY to $21.9M
Related: WFS Net Profit Rebounds to $17.6 Million in Q2 2021; navy posts gross profit of $22.7 million
Related: WFS Marine Segment Generated Gross Profit of $25.4 Million, Down 57% YoY in Q1 2021
Related: WFS 2020 marine segment gross margin down 17% YoY due to Covid-19 factors
Related: WFS Marine Segment Gross Profit Down 40% YoY to $32 Million in Q3 2020
Related: WFS Q2 2020 Results Indicate Operating Segments ‘Adversely Affected’ by Covid-19
Related: WFS Marine Segment Posts Highest Quarterly Gross Profit Level in More Than Five Years
Related: WFS Marine Sales Volume Down Approximately 12% in Fiscal 2019

Photo credit: World Fuel Services
Posted: April 29, 2022


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