World Kinect Corporation (NYSE:WKC) Q4 2023 Earnings Call Transcript

So we doubled, again part of that was based on some pretty big wins we had in the fourth quarter that aren’t necessarily going to be repeated every quarter. But we should be safely in double digits for GP and EBITDA, percent of the total in those related businesses in 2024 as well.

Pavel Molchanov: Right. I think this touches on maybe one of the questions asked earlier, but when you sell a gallon of renewable diesel, SAF, et cetera, is that a higher margin profile structurally compared to its petroleum counterpart?

Michael Kasbar: It could be. So, I think it’s fair to say that you’ve got a product, a commodity that is not an ample supply. The demand for it, it does vary. There was a time when we had plenty of sustainable aviation fuel and there was a lot of interest. But when you start to talk about the price, that interest disappeared. You are seeing some economies of scale come through. But I think to answer your question directly, the answer is yes. So you know that, you know that yes, simply the answer is yes. And, sometime the amount of effort required to source it, certainly in the early days, but you are seeing the distribution, the production become more mainstream. Many of these products, not all of them are drop in fuel. So they drop right into our distribution platform.

And certainly with our end users, there are some products that require a little bit of educational aspect to it, and we’ve got the expertise to be able to do that. But yes, Pavel, they are definitely attractive from that dimension.

Pavel Molchanov: Thanks very much.

Operator: Thank you. I would now like to turn the conference back to Michael Kasbar for closing remarks. Sir?

Michael Kasbar: Well, thank you very much to everybody listening today, our supporters, analysts following our stock, and certainly our investors. We feel like we’ve got a far greater focus and good momentum in the organization. We look forward to seeing you all in New York to talk some more about our business. And thanks again to our colleagues, behalf of the management team, and all of the folks that we work with every day. Thanks for doing what you do. We’ll see you all in a quarter. Take care. We’ll see you in New York. Take care. Bye-bye.

Ira Birns: Bye, everybody.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.