WORLD FUEL SERVICES (INT, Financial) is a global leader in fuel logistics, engaged in the marketing, sale, distribution and financing of aviation, marine and land fuel products and related services. The company provides one stop shopping for customers in this highly fragmented industry. World Fuel Services was founded in 1984 and in 2013 generated $41.2 billion in revenue and $203 million in net income. We believe the company has a long runway to continue to grow organically by expanding its customer base, geographic reach and additional product and service offerings, as well as through acquisitions.
While a legal issue resulting from a devastating rail accident transporting oil in Canada remains a cloud over the company, we believe the company’s insurance and strong balance sheet will be adequate to satisfy the legal claims. The company should generate earnings of $3.20 in 2014, representing a multiple of 14x.
