World Fuel Services Corporation Announces Sale of Interests in Crude Oil Joint Ventures
December 08 2014 - 7:00AM
Business Wire
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.
World Fuel Services CorporationIra M. Birns,
305-428-8000Executive Vice President &Chief Financial
Officer
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