World Fuel Services 2005 Annual Report Download - page 15

PART I
Item 1. Business
Overview
World Fuel Services Corporation (the “Company”) was incorporated in Florida in July 1984 and along with
its consolidated subsidiaries is referred to collectively in this Annual Report on Form 10-K (“Form 10-K”) as
“World Fuel,” “we,” “our” and “us.” We commenced business as a recycler and reseller of fuel. In 1986, we
diversified our operations by entering the aviation fuel services business. In 1995, we entered the marine fuel
services business by acquiring the Trans-Tec group of companies.
We are engaged in the marketing and sale of marine and aviation fuel products and related services on a
worldwide basis. In our marine segment, we offer marine fuel and related services to a broad base of maritime
customers, including international container and tanker fleets and time-charter operators, as well as to the United
States and foreign governments. In our aviation segment, we offer aviation fuel and related services to major
commercial airlines, second and third-tier airlines, cargo carriers, regional and low cost carriers, corporate fleets,
fractional operators, private aircraft, military fleets and to the United States and foreign governments. We
compete by providing our customers value-added benefits including single-supplier convenience, competitive
pricing, the availability of trade credit, price risk management, logistical support, fuel quality control and fuel
procurement outsourcing.
We have offices located in the United States, United Kingdom, Denmark, Norway, The Netherlands,
Germany, Greece, Turkey, the United Arab Emirates, Russia, China, Taiwan, South Korea, Singapore, Japan,
Hong Kong, Costa Rica, Brazil, Chile, Argentina, Mexico, Colombia and South Africa. See “Item 2—Properties”
for a list of principal offices by business segment and “Exhibit 21.1—Subsidiaries of the Registrant” included in
this Form 10-K for a list of our subsidiaries.
Financial information with respect to our business segments (marine and aviation) and the geographic areas
of our business is provided in Note 7 to the accompanying consolidated financial statements included in this
Form 10-K.
Marine Segment
We market marine fuel and related services to a broad base of customers, including international container
and tanker fleets, and time-charter operators, as well as to the United States and foreign governments. Marine
fuel and related services are provided throughout most of the world under the following trade names: World Fuel,
Trans-Tec, Bunkerfuels, Oil Shipping, Marine Energy, Norse Bunker, Casa Petro, and Tramp Oil.
Through our extensive network of offices, we provide our customers global market intelligence and rapid
access to quality and competitively priced marine fuel, 24-hours a day, every day of the year. Our marine fuel
related services include management services for the procurement of fuel, cost control through the use of price
hedging instruments, quality control and claims management. Our customers need cost effective and professional
fuel services because the cost of fuel is a major component of a vessel’s operating overhead.
As an increasing number of ship owners, time charter operators and suppliers continue to outsource their
marine fuel purchasing and/or marketing needs, our value added services have become an integral part of the oil
and transportation industries’ push to shed non-core functions and reduce costs. Suppliers use our global sales,
marketing and financial infrastructure to sell a spot or ratable volume of product to a diverse, international
purchasing community. End customers use our real time analysis of the availability, quality, and price of marine
fuels in ports worldwide to maximize their competitive position.
In our marine segment, we primarily act as a reseller. When acting as a reseller, we purchase fuel from a
supplier, mark it up, and resell the fuel to a customer. We extend unsecured credit to most of our customers. We
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