WEX's conversion of ExxonMobil's Esso European card business is progressing, as the corporate payments company also extended its work with ExxonMobil to include Asia and South Pacific markets.
WEX made "significant" progress with the integration of ExxonMobil's European portfolio during the first quarter, Melissa Smith, WEX's president and CEO, says in an April 30 press release announcing WEX's first-quarter earnings. WEX secured merger clearance for the Esso portfolio from the European Commission and began setting up systems and infrastructure for the closing of the transaction, Smith says.
WEX on April 30 also announced an agreement with ExxonMobil to manage customer service, collections and processing of the Esso commercial fleet card in Singapore, Hong Kong and Macau, as well as the Mobil Fleet card in Guam and Spain.
"This new business agreement builds upon our existing relationship with ExxonMobil in the U.S., Canada and Europe," Smith says. "Expanding our international footprint and extending our product suite in the Asia-Pacific region are critical components of our long-term growth strategy."
WEX's total revenue for the first quarter was $182 million, up 10.1% from $165.4 million for the first quarter of 2013. Net income to common shareholders in the first quarter of 2014 was up about 21% to $36.5 million, or $0.93 per diluted share; compared with $28.7 million, or $0.73 per diluted share in 2013.
The company's first-quarter results were driven by organic growth from its domestic fleet business, which benefited from favorable dynamics in fee income and new portfolios coming online, Smith says.