Q2 2024 World Kinect Corporation Earnings Call Transcript
Key Points
- World Kinect Corp (WKC) reported strong performance in its aviation business, with a near-record 53% operating margin for the quarter.
- The strategic divestiture of the Avinode business enhanced liquidity and created significant economic value.
- The company completed a tuck-in acquisition in business aviation, expanding its bulk fuel distribution network by adding nearly 300 customers.
- WKC generated $68 million in operating cash flow and $53 million in free cash flow during the second quarter.
- Interest expenses continued to decline, with a 15% year-over-year reduction, contributing to improved financial efficiency.
- The land segment experienced weaker-than-expected performance, with a 28% year-over-year decline in gross profit due to unfavorable market conditions.
- Marine gross profit decreased by about 13% year-over-year, driven by lower market volatility.
- The renewable fuels market on the West Coast faced logistics-related issues, impacting volume and margins.
- The percentage of gross profit from low carbon energy decreased to 8% from 12% in the previous quarter.
- The land business faced challenges from an oversupplied natural gas market and pressure on margins in Brazil.
Thank you for standing by, and welcome to World Kinect Corporation's second-quarter 2024 earnings conference call. (Operator Instructions)
I would now like to hand the call over to Elsa Ballard, VP, Investor Relations and Communications. Please go ahead.
Good evening, everyone. And welcome to World Kinect's second-quarter 2024 earnings conference call, which will be presented alongside our live slide presentation. Today's presentation is also available via webcast on our Investor Relations website.
I'm Elsa Ballard, VP of Investor Relations and Communications. With me on the call today is Michael Kasbar, our Chairman and Chief Executive Officer; and Ira Birns, our EVP and Chief Financial Officer.
Before we get started, I'd like to review our Safe Harbor statement. Certain statements made today, including comments about our expectations regarding future plans and performance, are forward-looking statements that are subject to a range of
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