World Kinect Corporation Declares Regular Quarterly Cash Dividend and Announces Additional $200 Million Share Repurchase Authorization

Rhea-AI Summary

World Kinect (NYSE: WKC) has announced two significant financial decisions. Firstly, the Board of Directors declared a quarterly cash dividend of $0.17 per share, payable on October 16, 2024, to shareholders of record on September 30, 2024. Secondly, the company approved an additional $200 million share repurchase authorization, supplementing the previous authorization which had about $108 million remaining as of June 30, 2024.

CFO Ira Birns stated that this increase in share repurchase authorization underscores the company's strong financial position and ability to generate solid free cash flow. The repurchases can be made in the open market or through private negotiations, with timing and amount dependent on various factors. The program has no expiration date and can be adjusted as needed.

Positive

• Declared quarterly cash dividend of $0.17 per share
• Approved additional $200 million share repurchase authorization
• Strong financial position and solid free cash flow generation
• Commitment to returning capital to shareholders
• Flexible share repurchase program with no expiration date

Negative

• None.

Insights

Financial Analyst

World Kinect's announcement is a positive signal for investors. The $0.17 quarterly dividend demonstrates a commitment to returning value to shareholders. More significantly, the additional $200 million share repurchase authorization, on top of the existing $108 million, shows strong confidence in the company's financial health and future prospects. Share buybacks can boost earnings per share and stock price, potentially benefiting investors. However, it's important to monitor how this impacts the company's cash reserves and ability to invest in growth opportunities. The CFO's emphasis on "solid free cash flow" suggests a balanced approach to capital allocation, but investors should watch for execution in both shareholder returns and strategic investments.

Market Research Analyst

This announcement could have a positive short-term impact on World Kinect's stock price. Investors often view increased buyback authorizations favorably, as they signal management's confidence and can provide price support. The dividend continuation also appeals to income-focused investors. However, the long-term implications are more nuanced. While the company mentions "strategic operational opportunities" and "synergistic acquisitions," the substantial buyback program might raise questions about organic growth prospects. Investors should analyze World Kinect's industry position and growth strategy to assess whether this capital allocation strikes the right balance between returning value and investing for future growth in the dynamic energy and logistics sector.

MIAMI--(BUSINESS WIRE)-- World Kinect Corporation (NYSE: WKC) announced today that its Board of Directors has declared a quarterly cash dividend of $0.17 per share, which is payable on October 16, 2024 to shareholders of record on September 30, 2024.

Additionally, the Board of Directors approved an additional $200 million share repurchase authorization. The new authorization is in addition to the Company’s previous authorization, which had approximately $108 million remaining as of June 30, 2024.

“Increasing our share repurchase authorization highlights our strong financial position and continued ability to deliver solid free cash flow,” said Ira Birns, Executive Vice President and Chief Financial Officer. “We remain committed to our capital allocation framework, which includes investing in strategic operational opportunities, synergistic acquisitions to accelerate growth and returning capital to shareholders through buybacks and dividends to drive long-term shareholder value.”

Share repurchases may be made from time to time in the open market or through privately negotiated transactions. The timing and amount of shares to be repurchased under the program will depend on market conditions, share price, securities law and other legal requirements and factors. The program does not require the purchase of any minimum number of shares, has no expiration date and repurchases may be initiated, suspended or discontinued at any time without prior notice.

About World Kinect Corporation

Headquartered in Miami, Florida, World Kinect Corporation (NYSE: WKC) is a global energy management company offering fulfillment and related services to more than 150,000 customers across the aviation, marine, and land-based transportation sectors. We also supply natural gas and power in the United States and Europe along with a growing suite of other sustainability-related products and services.

For more information, visit www.world-kinect.com.

Information Relating to Forward-Looking Statements

This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe," "anticipate," "expect," "estimate," "project," "could," "would," "will," "will be," "will continue," "plan," or words or phrases of similar meaning. Specifically, this release includes forward-looking statements regarding our capital allocation framework, ability to deliver free cash flow and return of capital to our shareholders. Our forward-looking statements are qualified in their entirety by cautionary statements and risk factor disclosures contained in our Securities and Exchange Commission ("SEC") filings, including our most recent Annual Report on Form 10-K filed with the SEC. Actual results may differ materially from any forward-looking statements due to risks and uncertainties, including, but not limited to: customer and counterparty creditworthiness and our ability to collect accounts receivable and settle derivative contracts; changes in the market prices of energy or commodities or extremely high or low fuel prices that continue for an extended period of time; adverse conditions in the industries in which our customers operate; our inability to effectively mitigate certain financial risks and other risks associated with derivatives and our physical fuel products; our ability to achieve the expected level of benefit from our restructuring activities and cost reduction initiatives; relationships with our employees and potential labor disputes associated with employees covered by collective bargaining agreements; our failure to comply with restrictions and covenants governing our outstanding indebtedness; the impact of cyber and other information technology or security related incidents on us, our customers or other parties; changes in the political, economic or regulatory environment generally and in the markets in which we operate, including as a result of the current conflicts in Eastern Europe and the Middle East and the upcoming 2024 U.S. presidential election; greenhouse gas reduction programs and other environmental and climate change legislation adopted by governments around the world, including cap and trade regimes, carbon taxes, increased efficiency standards and mandates for renewable energy, each of which could increase our operating and compliance costs as well as adversely impact our sales of fuel products; changes in credit terms extended to us from our suppliers; non-performance of suppliers on their sale commitments and customers on their purchase commitments; non-performance of third-party service providers; our ability to effectively integrate and derive benefits from acquired businesses; our ability to meet financial forecasts associated with our operating plan; lower than expected cash flows and revenues, which could impair our ability to realize the value of recorded intangible assets and goodwill; the availability of cash and sufficient liquidity to fund our working capital and strategic investment needs; currency exchange fluctuations; inflationary pressures and their impact on our customers or the global economy, including sudden or significant increases in interest rates or a global recession; our ability to effectively leverage technology and operating systems and realize the anticipated benefits; failure to meet fuel and other product specifications agreed with our customers; environmental and other risks associated with the storage, transportation and delivery of petroleum products; reputational harm from adverse publicity arising out of spills, environmental contamination or public perception about the impacts on climate change by us or other companies in our industry; risks associated with operating in high-risk locations, including supply disruptions, border closures and other logistical difficulties that arise when working in these areas; uninsured or underinsured losses; seasonal variability that adversely affects our revenues and operating results, as well as the impact of natural disasters, such as earthquakes, hurricanes and wildfires; declines in the value and liquidity of cash equivalents and investments; our ability to retain and attract senior management and other key employees; changes in U.S. or foreign tax laws, interpretations of such laws, changes in the mix of taxable income among different tax jurisdictions, or adverse results of tax audits, assessments, or disputes; our failure to generate sufficient future taxable income in jurisdictions with material deferred tax assets and net operating loss carryforwards; changes in multilateral conventions, treaties, tariffs or other arrangements between or among sovereign nations; our ability to comply with U.S. and international laws and regulations, including those related to anti-corruption, economic sanction programs and environmental matters; the outcome of litigation, regulatory investigations and other legal matters, including the associated legal and other costs; and other risks described from time to time in our SEC filings. New risks emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, changes in expectations, future events, or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240909800501/en/

Ira M. Birns, Executive Vice President & Chief Financial Officer

Elsa Ballard, Vice President of Investor Relations & Communications

investor@worldkinect.com

Source: World Kinect Corporation

FAQ

What is the amount of World Kinect 's (WKC) quarterly dividend?

World Kinect (WKC) declared a quarterly cash dividend of $0.17 per share.

When will World Kinect (WKC) pay its next dividend?

World Kinect (WKC) will pay its next dividend on October 16, 2024, to shareholders of record on September 30, 2024.

How much additional share repurchase authorization did World Kinect (WKC) approve?

World Kinect (WKC) approved an additional $200 million share repurchase authorization.

What was the remaining amount in World Kinect 's (WKC) previous share repurchase authorization?

World Kinect (WKC) had approximately $108 million remaining in its previous share repurchase authorization as of June 30, 2024.

Does World Kinect 's (WKC) share repurchase program have an expiration date?

No, World Kinect 's (WKC) share repurchase program does not have an expiration date and can be initiated, suspended, or discontinued at any time.