World Fuel Services Corporation (INT) has reported a 95.59 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $2.20 million, or $0.03 a share in the quarter, compared with $49.90 million, or $0.71 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $25.20 million, or $0.36 a share compared with $60.20 million or $0.86 a share, a year ago.
Revenue during the quarter grew 15.72 percent to $7,792.10 million from $6,733.60 million in the previous year period. Gross margin for the quarter contracted 57 basis points over the previous year period to 2.85 percent. Total expenses were 99.69 percent of quarterly revenues, up from 98.96 percent for the same period last year. That has resulted in a contraction of 73 basis points in operating margin to 0.31 percent.
Operating income for the quarter was $24 million, compared with $70.20 million in the previous year period.
"While 2016 was a challenging year in many of the markets we serve, we remain committed to executing on our short and long-term growth plans while increasing operational efficiency" stated Michael J. Kasbar, chairman and chief executive officer of World Fuel Services Corporation. "We are optimistic about our prospects for 2017 and are focused on executing on our long-term strategy of becoming a global leader in the areas of energy management, fulfillment, payments and transaction management."
Operating cash flow drops significantly
World Fuel Services Corporation has generated cash of $205.20 million from operating activities during the year, down 54.15 percent or $242.30 million, when compared with the last year.
The company has spent $428.50 million cash to meet investing activities during the year as against cash outgo of $144.80 million in the last year. It has incurred net capital expenditure of $7.10 million on net basis during the year, down 84.46 percent or $38.60 million from year ago.
Cash flow from financing activities was $340.90 million for the year as against cash outgo of $17 million in the last year period.
Cash and cash equivalents stood at $698.60 million as on Dec. 31, 2016, up 19.93 percent or $116.10 million from $582.50 million on Dec. 31, 2015.
Working capital increases
World Fuel Services Corporation has recorded an increase in the working capital over the last year. It stood at $1,653.90 million as at Dec. 31, 2016, up 10.87 percent or $162.10 million from $1,491.80 million on Dec. 31, 2015. Current ratio was at 1.76 as on Dec. 31, 2016, down from 1.85 on Dec. 31, 2015.
Debt increases substantially
World Fuel Services Corporation has witnessed an increase in total debt over the last one year. It stood at $1,186.20 million as on Dec. 31, 2016, up 53.61 percent or $414 million from $772.20 million on Dec. 31, 2015. Total debt was 21.92 percent of total assets as on Dec. 31, 2016, compared with 16.97 percent on Dec. 31, 2015. Debt to equity ratio was at 0.61 as on Dec. 31, 2016, up from 0.40 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.80 for the quarter from 8.36 for the same period last year.
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