About World Fuel Services

World Kinect Corporation and its subsidiaries (World Kinect) operate as a global energy management company. The company is offering fulfillment and related services to more than 150,000 customers across the aviation, marine, and land-based transportation sectors. The company also supplies natural gas and power in the United States and Europe along with a growing suite of other sustainability-related products and services. The company is a signatory to the United Nations (‘U.N.’) Global Compact and are focused on supporting the U.N.'s principles on human rights, labor, the environment and anti-corruption through progressing the company’s goals and objectives. The company has implemented enhancements to the company’s policies, processes, and governance structure to further strengthen the company’s support of environmental, health, safety, sustainability, diversity, equity and inclusion, and other social responsibility issues and impacts. The company conducts its operations through numerous locations both within the United States (‘U.S.’) and throughout various foreign jurisdictions. Reportable Segments The company operates in three reportable segments: Aviation, Land, and Marine, where the company offers fuel and related products and services to customers in these transportation industries. Aviation The company provides global aviation fuel supply and comprehensive service solutions to major commercial airlines, second and third-tier airlines, cargo carriers, regional and low-cost carriers, airports, fixed-based operators, corporate fleets, charter and fractional operators, and private aircraft. The company’s aviation-related service offerings include fuel management, price risk management, ground handling, 24/7 global dispatch services, and trip planning services, including flight planning and scheduling, weather reports and overflight permits. The company also supplies fuel and provides services to the U.S. and foreign government and military customers. In addition, the company offers payment and processing services, as well as operates a web-based marketplace platform that facilitates aircraft charter arrangements. The company has developed an extensive network of on-airport fueling operations and third-party suppliers and service providers that enable the company to provide aviation fuel and related services throughout the world. The breadth of the company’s service offerings combined with its global supplier network is a strategic differentiator that allows customers to secure fuel and high-quality services in locations worldwide. The company purchases its aviation fuel from suppliers worldwide. Fuel may be delivered into the company’s customers’ aircraft or to a designated storage facility located at one of the company’s locations or its suppliers’ locations pursuant to arrangements with them. Inventory is purchased at airport locations or shipped, typically via pipelines or trucks, and held at multiple locations in order to meet the needs of the company’s customers. The company engages in contract sales, which are sales made pursuant to fuel purchase contracts with customers who commit to purchasing fuel from the company over the contract term. The company also conducts spot sales, which are sales that do not involve continuing contractual obligations by its customers to purchase fuel from the company. Additionally, the company has been taking actions designed to increase the availability of renewable and lower-carbon fuels such as sustainable aviation fuel (‘SAF’) and are working to expand and develop the company’s supply chain to meet customer demand. Land In the company’s Land segment, the company primarily offers fuel, lubricants, heating oil, and related products and services to commercial, industrial, residential and government customers, as well as retail petroleum operators. The company provides energy advisory services, sustainability solutions, as well as supply fulfillment for natural gas and power. The company primarily conducts these activities throughout most of the U.S., as well as parts of the United Kingdom (‘U.K.’) and Brazil. The company continues to focus on supporting the energy transition through various initiatives and expanding the company’s sustainability offerings, including renewable fuel products, and carbon management and renewable energy solutions, such as renewable diesel (also known as hydrotreated vegetable oil or ‘HVO’), biodiesel, and renewable natural gas (biogas). The company is continuing to invest in talent in this area, which will help accelerate growth in these activities. The company’s Land segment is well-positioned to continue growing market share, both organically and through leveraging the capabilities of the company’s acquisitions, including Flyers Energy Group, LLC (‘Flyers’), which the company acquired in January 2022, serving to further enhance its business to deliver value-added solutions to the company’s land fuel customers. In connection with the company’s fuel marketing activities, the company distributes fuel under long-term contracts to branded and unbranded distributors, convenience stores and retail fuel outlets operated by third parties. The company also distributes heating oil to residential customers and unbranded fuel to numerous other customers, including commercial and industrial customers, such as manufacturing, mining, agriculture, construction, and oil and gas exploration companies. These transactions may be pursuant to fuel purchase contracts or through spot sales. In certain instances, the company serves as a reseller, where the company purchases fuel from a supplier and contemporaneously resell it to the company’s customers through spot and contract sales. The company also maintains inventory in certain strategic locations, the cost of which is generally tied to market-based formulas. Finally, the company provides transportation logistics for its product deliveries, including arranging for fuel products to be delivered from storage terminals to the appropriate sites through the company’s own fleet of trucks, as well as third-party transportation providers. The fuel is generally delivered to the company’s customers directly or to a designated tanker truck loading terminal commonly referred to as ‘racks,’ which are owned and operated by the company’s suppliers or other third-parties. Marine Through the company’s extensive network, the company markets fuel, lubricants, and related products and services to a broad base of marine customers, including international container, dry bulk and tanker fleets, commercial cruise lines, yachts and time-charter operators, the U.S. and foreign governments, as well as other fuel suppliers. The company provides its customers with real-time global market intelligence and rapid access to quality and competitively priced marine fuel 24 hours a day, every day of the year. The company’s marine fuel-related services include management services for the procurement of fuel, cost control through the use of price risk management offerings, quality control and claims management. The company has also sought to take a leading role in developing a sustainable marine fuel supply chain. Through collaboration with suppliers, customers and other industry participants, the company is actively working to create near-term solutions and identify lower carbon alternatives that will enable the acceleration of the energy transition in the maritime industry. The company serves primarily as a reseller, where the company takes delivery for fuel purchased from its supplier at the same place and time as the fuel is sold to the company’s customer. The company also sells fuel from its inventory, which the company maintains in storage facilities that the company owns or leases. In certain cases, the company serves as a broker and is paid a commission for negotiating the fuel purchase transaction between the supplier and the end-user, as well as for expediting delivery of the fuel. The majority of the company’s Marine segment activity consists of spot sales. The company’s cost of fuel is generally tied to spot pricing, market-based formulas, or government-controlled prices. The company also contracts with third parties to provide various services for the company’s customers, including fueling of vessels in ports and at sea and transportation and delivery of fuel and fuel-related products. Seasonality The company’s results for the second and third quarters of the year (year ended December 2023) have historically been stronger for the company’s aviation segment and the company’s results for the fourth and first quarters of the year have historically been stronger for the company’s land segment. Governmental Regulation As a global organization with customers and operations around the world, the company is subject to an often complicated, multi-jurisdictional matrix of laws and regulations that govern international trade, including laws relating to anti-corruption, anti-money-laundering, export controls, economic sanctions, anti-boycott rules, currency exchange controls and transfer pricing rules. These laws and regulations are administered by, among others, the U.S. Department of Justice, Department of State, SEC, Internal Revenue Service, the U.S. Department of Commerce and U.S. Department of the Treasury, as well as the counterparts of these agencies in foreign countries. History The company was founded in 1984. It was incorporated in Florida in 1984. The company was formerly known as World Fuel Services Corporation and changed its name to World Kinect Corporation in 2023.