Company: WKC
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000789460-25-000019
Chunk: 16

Company: WORLD KINECT CORP
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 2
Chunk 16
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 compensation and employee benefit costs were lower as a result of the 2025 Restructuring Plan initiatives.

Marine Segment Results of Operations

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

For the Six Months Ended June 30, 20252024ChangeRevenue$3,826.1 $4,694.6 $(868.5)Gross profit$62.8 $85.0 $(22.3)Operating expenses73.5 47.9 25.7 Income (loss) from operations$(10.8)$37.2 $(48.0)Operational metrics:Marine segment volumes (metric tons)7.6 8.5 (0.9)Marine segment average price per metric ton$504.30 $552.90 $(48.61)

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Revenues in our marine segment were $3.8 billion for the six months ended June 30, 2025, a decrease of $868.5 million, or 18%, compared to the six months ended June 30, 2024. The decrease in revenue was driven by a lower average prices, partially offset by a decrease in volume. The average price per metric ton of bunker fuel sold decreased by 9%. Total volumes decreased by 0.9 million metric tons, or 11%, to 7.6 million primarily due to lower demand in our resale businesses driven in part by continued market uncertainty with respect to international trade.

Our marine segment gross profit for the six months ended June 30, 2025 was $62.8 million, a decrease of $22.3 million, or 26%, principally due to an unfavorable transaction tax settlement recognized in the second quarter of 2025 in addition 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 market uncertainty.

Loss from operations in our marine segment for the six months ended June 30, 2025 was $10.8 million  compared to income from operations of $37.2 million for the six months ended June 30, 2024. In addition to the decrease in gross profit discussed above, operating expenses increased primarily as a result of asset impairment charges recognized during the three months ended June 30, 2025, as discussed in Note 6. Fair Value Measurements, partially