Shares of World Fuel Services (NYSE:INT) rallied more than 10% by 3 p.m. EDT on Friday. Fueling the energy management company's stock was its second-quarter results.
World Fuel Services hauled in $38.8 million, or $0.58 per share, of adjusted net income during the second quarter. That's an increase from the $0.47 per share it produced in the year-ago period and was $0.04 per share ahead of analysts' consensus estimate.
The fuel services company was able to overcome a 13% year-over-year decline in the sale of bunker fuels to deliver a 20% improvement in gross profit in its marine segment. That's due to better performance in its core resale operations because of its focus on cost management.
The company's aviation segment also performed well, as its gross profit increased 10% year over year thanks to strength in its core commercial and government-related activities. Finally, World Fuel Services' land segment delivered a 3.5% improvement in its gross profit thanks to the continued expansion of its Kinect global energy services platform and its MulitService payment solutions business.
CEO Michael Kasbar said the company is "cautiously optimistic" about opportunities to help its customers comply with an upcoming fuel standards policy change. Kasbar said World Fuel Services has the financial, technical, supply, and logistics capabilities to address its customers' requirements. That has the company well positioned to continue rewarding investors, which it recently did by boosting its dividend and repurchasing $65 million of its shares.