Company: WKC
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001628280-25-019852
Chunk: 100

Company: WORLD KINECT CORP
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 8
Chunk 100
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 to the decrease in gross profit discussed above, operating expenses increased due to asset impairment charges recognized in connection with the Watson Fuels sale and restructuring charges during the first quarter of 2025, as discussed under "Restructuring and Exit Activities" above, partially offset by lower compensation and general and administrative costs principally as a result of the savings already achieved a part of our exit and restructuring activities.

Marine Segment Results of Operations

The following provides a summary of the marine segment results of operations for the periods indicated (in millions, except price per metric ton):

For the Three Months Ended March 31, 20252024ChangeRevenue$1,932.9 $2,390.5 $(457.6)Gross profit$35.7 $48.4 $(12.7)Operating expenses20.9 21.6 (0.7)Income (loss) from operations$14.8 $26.8 $(12.0)Operational metrics:Marine segment volumes (metric tons)3.7 4.3 (0.6)Marine segment average price per metric ton$519.49 $552.04 $(32.56)

Revenues in our marine segment were $1.9 billion for the three months ended March 31, 2025, a decrease of $457.6 million, or 19%, compared to the three months ended March 31, 2024. The decrease in revenue was driven by lower average fuel prices and a decrease in volume. The average price per metric ton of bunker fuel sold decreased by 6%. Total volumes decreased by 0.6 million metric tons, or 14%, to 3.7 million primarily due to lower demand in our resale businesses driven in part by increasing market uncertainty with respect to international trade.

Marine segment gross profit for the three months ended March 31, 2025 was $35.7 million, a decrease of $12.7 million, or 26%, principally due to to lower bunker fuel prices and further reduced volatility that had benefited prior year results, as well as reduced demand and lower margins in our resale and physical businesses as a result of increasing market uncertainty. 

Income from operations in our marine segment for the three months ended March 31, 2025 was $14.8 million, a decrease of $12.0 million, or 45%, compared to the three months ended March 31, 2024. The decrease in gross