World Kinect, one of the world's largest bunker suppliers and also known as World Fuel, said weaker demand associated with the Middle East conflict reduced its marine fuel volumes in the second quarter of 2026, even as margins and gross profit improved sharply from a year earlier.

The result highlights the split between physical demand and trading conditions in the bunker market: suppliers can sell fewer tonnes when shipping activity or customer demand weakens, while disruption and price volatility can still support higher per-tonne margins for companies able to secure fuel and manage supply risk.

The company reported income from marine operations of $22.2 million in Q2, according to an earnings release on Thursday. That compared with a loss of $25.6 million in Q2 2025, but was lower than income of $33 million in the first quarter of 2026.

Marine segment gross profit reached $79.7 million in Q2, up from $27 million a year earlier. World Kinect sold 3.46 million mt of marine fuels during the quarter, down 10.4% year on year and 10.5% from the previous quarter.

The results left the company with a Q2 profit margin on bunker sales of $6.41/mt, compared with a loss of $6.62/mt a year earlier and a profit of $8.53/mt in Q1 2026.

For full-year 2025, World Kinect sold 15.76 million mt of bunker fuel, down 4.9% from 16.57 million mt in 2024.

Analyst Call

World Kinect said its marine business delivered one of its strongest quarters on record, with higher bunker fuel prices and market volatility lifting margins despite the decline in sales volumes.

"Aviation and marine each delivered record quarterly gross profit, supported by favourable market conditions, including continued volatility associated with the conflict in the Middle East," Ira Birns, CEO of World Kinect Corporation, said.

"During periods of disruption, customers place an even greater premium on certainty of supply, operational execution and trusted relationships."

For marine fuel buyers, certainty of supply is particularly important because bunkers are purchased around vessel schedules, port calls and route plans. When markets are disrupted, suppliers with broad procurement networks may see stronger demand for execution and credit support even if total tonnes decline.

Chief Financial Officer Mike Tejada said marine volumes fell to 3.5 million mt, down about 10% from a year earlier, mainly because of weaker demand tied to the Middle East conflict.

“Despite the lower volume, marine gross profit increased almost three times the prior year level to $80 million, the highest quarterly gross profit in the history of the segment,” Mike said.

“Looking to the third quarter and considering our July activity to date, we expect marine gross profit to be up year-over-year, reflecting continued momentum in the business.”