New York-listed oil and bunker trading firm World Fuel Services (WFS) on Thursday (29 April) posted a 54.3% fall in net income for the three months ended 31 March (Q1) 2021 due to the coronavirus’ impact on the aviation sector, reports Manifold Times.
Impact On The Global Economy
The company’s net income was USD 18.9 million in Q1 2021, compared to USD 41.4 million during Q1 2020, showed financials.
“Throughout 2020, the COVID-19 pandemic had a significant impact on the global economy as a whole, and the transportation industries in particular, which has continued into 2021,” said WFS.
“Many of our customers in these industries, especially commercial airlines, have experienced a substantial decline in business activity arising from the various measures enacted by governments around the world to contain the spread of the virus.”
WFS’ marine segment, meanwhile, generated gross profit of $25.4 million, a decrease of 57% year-over-year, during Q1 2021.
The decrease in gross profit was principally attributable to lower profitability as compared to Q1 2020 which benefited from certain supply imbalances and price volatility arising from the implementation of the IMO 2020 regulations in January 2020, as well as a decline in demand related to the pandemic.
The marine segment sold 4.23 million metric tonnes (mt) of bunkers in Q1 2021, compared to 4.89 million mt of marine fuel in Q1 2020.
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Source: Manifold times