MIAMI--(BUSINESS WIRE)--Dec. 8, 2014--
World Fuel Services Corporation (NYSE: INT), a global fuel logistics,
transaction and payment processing company, principally engaged in the
distribution of fuel and related products and services to customers in
the aviation, marine and land transportation industries, today announced
that its wholly-owned subsidiary, Petroleum Transport Solutions, LLC
(“PTS”), has sold its crude oil joint venture interests, which includes
the Pioneer Terminal in New Town, North Dakota, to its joint venture
partner for a base sales price of $43 million. In addition to the base
sales price, PTS will receive future contingent payments equal to $0.225
per barrel for crude oil received at the Pioneer Terminal, up to a limit
of 80,000 barrels per day through December 2026.
“Despite exiting these joint ventures, we will continue to offer
tailored solutions to producers and consumers in the growing North
American crude oil marketplace,” stated Michael J. Kasbar, chairman and
chief executive officer.
The transaction will result in a one-time after-tax gain of
approximately $11 million or $0.15 per diluted share, which will be
included in the company’s 2014 fourth quarter results.
Information Relating to Forward-Looking Statements
This release includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including
statements regarding our expectations about future contingent payments
and the effect of the transaction on our earnings, as well as future
offerings in the crude oil marketplace. These forward-looking statements
are qualified in their entirety by cautionary statements and risk factor
disclosures contained in the company’s Securities and Exchange
Commission (“SEC”) filings, including the company’s Annual Report on
Form 10-K filed with the SEC on February 14, 2014. Actual results may
differ materially from any forward-looking statements due to risks and
uncertainties, including, but not limited to: the joint ventures’
ability to continue receiving crude oil at the terminal and make the
contingent payments, potential liabilities from indemnification
obligations under the transaction documents, our ability to capitalize
on new market opportunities, potential liabilities and the extent of any
insurance coverage, the outcome of pending litigation and other
proceedings, the impact of quarterly fluctuations in results, the
creditworthiness of our customers and counterparties and our ability to
collect accounts receivable, fluctuations in world oil prices or foreign
currency, changes in political, economic, regulatory, or environmental
conditions, adverse conditions in the markets or industries in which we
or our customers and suppliers operate, our failure to effectively hedge
certain financial risks associated with the use of derivatives,
non-performance by counterparties or customers on derivatives contracts,
loss of, or reduced sales, to a significant government customer,
uninsured losses, the impact of natural disasters, adverse results in
legal disputes, unanticipated tax liabilities, our ability to retain and
attract senior management and other key employees and other risks
detailed from time to time in the company’s SEC filings. New risks
emerge from time to time and it is not possible for management to
predict all such risk factors or to assess the impact of such risks on
our business. Accordingly, we undertake no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, changes in expectations, future events, or otherwise.
About World Fuel Services Corporation
Headquartered in Miami, Florida, World Fuel Services is a leading global
fuel logistics company, principally engaged in the marketing, sale and
distribution of aviation, marine and land fuel products and related
services on a worldwide basis. World Fuel Services sells fuel and
delivers services to its clients at more than 8,000 locations in more
than 200 countries and territories worldwide.
The company's global team of market makers provides deep domain
expertise in all aspects of aviation, marine and land fuel management.
Aviation customers include commercial airlines, cargo carriers, private
aircraft and fixed base operators (FBOs), as well as the United States
and foreign governments. World Fuel Services' marine customers include
international container and tanker fleets, cruise lines and time-charter
operators, as well as the United States and foreign governments. Land
customers include petroleum distributors, retail petroleum operators,
and industrial, commercial, and government accounts. The company also
offers transaction management services which consist of card payment
solutions and merchant processing services to customers in the aviation,
marine and land transportation industries. For more information, call
305-428-8000 or visit www.wfscorp.com.
Source: World Fuel Services Corporation
World Fuel Services Corporation
Ira M. Birns, 305-428-8000
Executive
Vice President &
Chief Financial Officer