Aegean Marine Petroleum Network Inc. Announces Fourth Quarter 2012 Financial Results

 Aegean Marine Petroleum Network Inc. Announces Fourth Quarter 2012 Financial
                                   Results

Reports Eighth Consecutive Quarter of Profitability

PR Newswire

PIRAEUS, Greece, Feb. 27, 2013

PIRAEUS, Greece, Feb. 27, 2013 /PRNewswire/ -- Aegean Marine Petroleum Network
Inc. (NYSE: ANW) ("Aegean" or the "Company") today announced financial and
operating results for the fourth quarter ended December 31, 2012.

Fourth Quarter and Full Year Highlights

  o Recorded sales volumes of 2,729,070 metric tons in Q4 2012 and 10,620,864
    metric tons for the full year. 
  o Expanded gross profit to $71.8 million in Q4 2012 and $302.6 million for
    the full year. 
  o Recorded operating income of $11.3 million in Q4 2012 and $55.0 million
    for the full year.

       o Operating income adjusted for the sale of non-core assets was $13.0
         million in Q4 2012 and $61.0 million for the full year. 

  o Recorded net income of $3.3 million attributable to Aegean shareholders or
    $0.07 basic and diluted earnings per share in Q4 2012 and $20.1 million or
    $0.44 basic and diluted earnings per share for the full year.

       o Net income attributable to Aegean shareholders adjusted for the sale
         of a vessel was $5.1 million or $0.11 basic and diluted earnings per
         share in Q4 2012 and $26.0 million or $0.56 basic and diluted
         earnings per share for the full year.

  o Recorded EBITDA of $19.5 million in Q4 2012 and $87.6 million for the full
    year.

       o EBITDA adjusted for the sale of vessels was $21.3 million in Q4 2012
         and $93.6 million for the full year.

"Our eighth consecutive quarter of profitability rounded out a year of strong
performance for Aegean," said E. Nikolas Tavlarios, President.  "During the
fourth quarter we further strengthened our integrated marine fuel logistics
chain and continued to build volume in our lubricants business."

Mr. Tavlarios continued, "Throughout 2012, we grew our business across all key
areas as we executed on our growth initiatives, made notable progress in
diversifying and expanding our revenue base and increased our global market
share. At the same time, we reduced our operating expense structure and
leveraged our fixed infrastructure – both of which positively impacted our
bottom line."

The Company achieved net income attributable to Aegean shareholders for the
three months ended December 31, 2012 of $3.3 million, or $0.07 basic and
diluted earnings per share.  Net income attributable to AMPNI shareholders
excluding a non-cash loss from the sale of a non-core vessel was $5.1 million
or $0.11 basic and diluted earnings per share.  For the three months ended
December 31, 2011 the Company recorded net income of $6.3 million, or $0.14
basic and diluted earnings per share.

Total revenues for the three months ended December 31, 2012, of $1,734.7
million were consistent with the $1,740.3 million reported for the same period
in 2011. For the three months ended December 31, 2012, sales of marine
petroleum products of $1,724.0 million were also in-line with sales of
$1,729.0 million for the same period in 2011. Gross profit, which equals total
revenue less directly attributable cost of revenue decreased by 4.77% to $71.8
million in the fourth quarter of 2012 compared with $75.4 million in the same
period in 2011.

For the three months ended December 31, 2012, the volume of marine fuel sold
by the Company increased by 6.24% to 2,729,070 metric tons compared with
2,568,714 metric tons in the same period in 2011.

Operating income for the fourth quarter of 2012 decreased by 35.8% to $11.3
million as compared to $17.6 million for the same period in 2011. Operating
income excluding a non-cash loss from the sale of a non-core vessel was $13.0
million. Operating expenses excluding net book gain or loss on sale of vessels
increased by $1.0 million, or 1.8%, to $58.8 million for the three months
ended December 31, 2012, compared with $57.8 million for the same period in
2011.

Mr. Tavlarios concluded, "Looking ahead to 2013, despite the challenging
macroeconomic environment, we believe our focus on profitable volume growth,
diversification and operational efficiencies will allow Aegean to achieve
continued growth and enhance shareholder value."

Liquidity and Capital Resources

Net cash provided by operating activities was $42.5 million for the three
months ended December 31, 2012. Net income, as adjusted for non-cash items (as
defined in Note 9) was $15.6 million for the period.

Net cash used in investing activities was $27.7 million for the three months
ended December 31, 2012, mainly due to the advances for other fixed assets
under construction.

Net cash used in financing activities was $15.1 million for the three months
ended December 31, 2012, primarily driven by the pay down of net borrowings.

As of December 31, 2012, the Company had cash and cash equivalents of $77.2
million and working capital of $53.0 million. Non-cash working capital, or
working capital excluding cash and debt, was $434.7 million. 

As of December 31, 2012, the Company had $326.4 million in available
liquidity, which includes unrestricted cash and cash equivalents of $77.2
million and available undrawn amounts under the Company's working capital
facilities of $249.2 million, to finance working capital requirements.

The weighted average basic and diluted shares outstanding for the three months
ended December 31, 2012 were 45,501,233. The weighted average basic and
diluted shares outstanding for the three months ended December 31, 2011 were
45,350,768.

Spyros Gianniotis, Chief Financial Officer, stated, "2012 was another strong
year for the Company as we grew our base business and developed new revenue
streams while improving the Company's cost structure. We executed on our
strategy to sell non-core assets, which allowed us to reduce our expenditures
related to maintenance and, at the same time, increase our fleet utilization
and enhance overall profitability. As we leverage our dynamic financial model,
we will use the financial flexibility it creates to invest in growth
opportunities that we believe will create significant long-term value. We are
well positioned to succeed should industry headwinds continue longer than
anticipated, and at the same time, we have positioned the company to
capitalize on improving macro fundamentals as they emerge."

 

Summary Consolidated Financial and Other Data (Unaudited)
                    For the Three Months Ended      For the Year Ended

                    December 31,                    December 31,
                       2011            2012            2011         2012
                       (in thousands of U.S. dollars, unless otherwise stated)
Income Statement
Data:
Revenues - third    $  1,728,794   $   1,728,984    $  6,910,348  $ 7,207,813
parties
Revenues - related     11,554          5,730           55,117       51,147
companies
Total revenues         1,740,348       1,734,714       6,965,465    7,258,960
Cost of revenues  -    1,572,125       1,561,464       6,284,179    6,498,967
third parties
Cost of revenues–      92,775          101,401         404,988      457,344
related companies
Total cost of          1,664,900       1,662,865       6,689,167    6,956,311
revenues
Gross profit           75,448          71,849          276,298      302,649
Operating expenses:
Selling and            49,393          50,734          192,846      210,236
distribution
General and            8,038           7,703           29,806       29,897
administrative
Amortization of        392             375             1,461        1,505
intangible assets
Loss on sale of        -               1,748           8,682        5,966
vessels, net
Operating income       17,625          11,289          43,503       55,045
Net financing cost     7,573           7,279           27,807       32,260
Foreign exchange       1, 116          (982)           (1,440)      (3,786)
losses (gains), net
Income taxes           2,125           1,339           5,428        4,122
Net income             6,811           3,653           11,708       22,449
Less income
attributable to        518             309             1,480        2,372
non-controlling
interest
Net income
attributable to     $  6,293       $   3,344        $  10,228     $ 20,077
AMPNI shareholders
Basic earnings per
share (U.S.         $  0.14        $   0.07         $  0.22       $ 0.44
dollars)
Diluted earnings
per share (U.S.     $  0.14        $   0.07         $  0.22       $ 0.44
dollars)
EBITDA^(1)          $  23,856      $   19,525       $  73,791     $ 87,639
Other Financial
Data:
Gross spread on
marine petroleum    $  70,045      $   64,663       $  256,960    $ 268,804
products^(2)
Gross spread on        530             928             1,965        3,077
lubricants^(2)
Gross spread on        69,515          63,735          254,995      265,727
marine fuel^(2)
Gross spread per
metric ton of
marine                 27.1            23.4            24.0         25.0

fuel sold (U.S.
dollars) ^ (2)
Net cash provided
by/ (used in)       $  45,454      $   42,472       $  (44,865)   $ 122,328
operating
activities
Net cash used in
investing              18,551          27,733          45,589       56,971
activities
Net cash provided
by/ (used in)          5,181           (15,119)        73,169       (57,127)
financing
activities
Sales Volume Data
(Marine Fuel Metric
Tons): ^ (3)
Total sales volumes    2,568,714       2,729,070       10,646,271   10,620,864
Other Operating
Data:
Number of owned
bunkering tankers,     58.0            57.0            58.0         57.0
end of period^(4)
Average number of
owned bunkering        57.6            57.0            56.3         58.42
tankers^(4)(5)
Special Purpose
Vessels, end of        1.0             1.0             1.0          1.0
period^(6)
Number of owned
storage facilities,    8.0             7.0             8.0          7.0
end of period^(7)

 

Summary Consolidated Financial and Other Data (Unaudited)
                                                As of              As of

                                                December 31, 2011  December 31
                                                                   2012
                                                (in thousands of U.S. dollars,

                                                unless otherwise stated)
Balance Sheet Data:
Cash and cash equivalents                       68,582             77,246
Gross trade receivables                         526,450            477,738
Allowance for doubtful accounts                 (1,354)            (3,503)
Inventories                                     204,057            180,826
Current assets                                  851,991            787,795
Total assets                                    1,472,438          1,431,843
Trade payables                                  250,810            242,899
Current liabilities (including current portion  650,810            734,751
of long-term debt)
Total debt                                      706,916            653,286
Total liabilities                               992,896            927,325
Total stockholder's equity                      479,542            504,518
Working Capital Data:
Working capital^(8)                             201,181            53,044
Working capital excluding cash and debt^(8)     497,925            434,675

 

Notes:
   EBITDA represents net income before interest, taxes, depreciation and
   amortization. EBITDA does not represent and should not be considered as an
   alternative to net income or cash flow from operations, as determined by
   United States generally accepted accounting principles, or U.S. GAAP, and
1. our calculation of EBITDA may not be comparable to that recorded by other
   companies. EBITDA is included herein because it is a basis upon which the
   Company assesses its operating performance and because the Company believes
   that it presents useful information to investors regarding a company's
   ability to service and/or incur indebtedness. The following table
   reconciles net income to EBITDA for the periods presented:

 

                                 For the Three Months Ended For the Year Ended

                                 December 31,               December 31,
                                 2011          2012         2011      2012
Net income attributable to
                                 6,293         3,344        10,228    20,077
AMPNI shareholders
Add: Net financing cost

including amortization of        7,573         7,279        27,807    32,260

financing costs
  Add: Income tax expense        2,125         1,339        5,428     4,122
  Add: Depreciation and

  amortization excluding         7,865         7,563        30,328    31,180

  amortization of financing
costs
EBITDA                           23,856        19,525       73,791    87,639

 

   Gross spread on marine petroleum products represents the margin the Company
   generates on sales of marine fuel and lubricants.  Gross spread on marine
   fuel represents the margin that the Company generates on sales of various
   classifications of marine fuel oil ("MFO") or marine gas oil ("MGO"). Gross
   spread on lubricants represents the margin that the Company generates on
   sales of lubricants. Gross spread on marine petroleum products, gross
   spread of MFO and gross spread on lubircants are not items recognized by
   U.S. GAAP and should be not be considered as an alternative to gross profit
   or any other indicator of a Company's operating performance required by
   U.S. GAAP. The Company's definition of gross spread may not be the same as
   that used by other companies in the same or other industries.  The Company
   calculates the above-mentioned gross spreads by subtracting from the sales
   of the respective marine petroleum product the cost of the respective
   marine petroleum product sold and cargo transportation costs. For
   arrangements in which the Company physically supplies the respective marine
   petroleum product using its bunkering tankers, costs of the respective
2. marine petroleum products sold represents amounts paid by the Company for
   the respective marine petroleum product sold in the relevant reporting
   period. For arrangements in which the respective marine petroleum product
   is purchased from the Company's related company, Aegean Oil S.A., or Aegean
   Oil, cost of the respective marine petroleum products sold represents the
   total amount paid by the Company to the physical supplier for the
   respective marine petroleum product and its delivery to the custom
   arrangements in which the Company purchases cargos of marine fuel for its
   floating storage facilities, transportation costs may be included in the
   purchase price of marine fuels from the supplier or may be incurred
   separately from a transportation provider. Gross spread per metric ton of
   marine fuel sold represents the margin the Company generates per metric ton
   of marine fuel sold. The Company calculates gross spread per metric ton of
   marine fuel sold by dividing the gross spread on marine fuel by the sales
   volume of marine fuel. Marine fuel sales do not include sales of
   lubricants. The following table reflects the calculation of gross spread
   per metric ton of marine fuel sold for the periods presented:

 

                          For the Three Months Ended  For the Year Ended

                          December 31,                December 31,
                          2011           2012         2011         2012
Sales of marine petroleum 1,729,005      1,724,034    6,925,582    7,208,440
products
Less: Cost of marine      (1,658,960)    (1,659,371)  (6,668,622)  (6,939,636)
petroleum products sold
Gross spread on marine    70,045         64,663       256,960      268,804
petroleum products
Less: Gross spread on     (530)          (928)        (1,965)      (3,077)
lubricants
Gross spread on marine    69,515         63,735       254,995      265,727
fuel
Sales volume of marine    2,568,714      2,729,070    10,646,271   10,620,864
fuel (metric tons)
Gross spread per metric
ton of marine             27.1           23.4         24.0         25.0

fuel sold (U.S. dollars)

 

   Sales volume of marine fuel is the volume of sales of various
3. classifications of MFO and MGO for the relevant period and is denominated
   in metric tons. The Company does not use the sales volume of lubricants as
   an indicator.
                 The Company's markets include its physical supply operations
                 in the United Arab Emirates, Gibraltar, Jamaica, Singapore,
                 Northern Europe, Ghana, Vancouver, Montreal, Mexico, Portland
                 (U.K.), Trinidad and Tobago (Southern Caribbean), Tangiers
                 (Morocco), Las Palmas, Tenerife, Panama, Hong Kong and
                 Greece, where the Company conducts operations through its
                 related company, Aegean Oil.
4. Bunkering fleet comprises both bunkering vessels and barges. 
   Figure represents average bunkering fleet number for the relevant period,
   as measured by the sum of the number of days each bunkering tanker or barge
5. was used as part of the fleet during the period divided by the cumulative
   number of calendar days in the period multiplied by the number of bunkering
   tankers at the end of the period.   This figure does not take into account
   non-operating days due to either scheduled or unscheduled maintenance.
6. Special Purpose Vessels consists of the Orion, a 550 dwt tanker which is
   based in our Greek market. 
   As of December, ^ 2012 the Company owned one Panamax tanker, the Aeolos,
   and one Aframax tanker, the Leader as floating storage facilities in
   Gibraltar and United Arab Emirates. Additionally, the Company operates a
7. barge, the Mediterranean, as a floating storage facility in Greece and a
   small tanker, the Tapuit, as a floating storage facility in Northern
   Europe.  The Company also has on-land storage facilities in Portland, Las
   Palmas, Tangiers and Panama.
   The ownership of storage facilities allows the Company to mitigate its risk
   of supply shortages. Generally, storage costs are included in the price of
   refined marine fuel quoted by local suppliers. The Company expects that the
   ownership of storage facilities will allow it to convert the variable costs
   of this storage fee mark-up per metric ton quoted by suppliers into fixed
   costs of operating its owned storage facilities, thus enabling the Company
   to spread larger sales volumes over a fixed cost base and to decrease its
   refined fuel costs.
   Working capital is defined as current assets minus current liabilities.
8. Working capital excluding cash and debt is defined as current assets minus
   cash and cash equivalents minus restricted cash minus current liabilities
   plus short-term borrowings plus current portion of long-term debt.
   Net income as adjusted for non-cash items, such as depreciation, provision
   for doubtful accounts, restricted stock, amortization, deferred income
   taxes, loss on sale of vessels, net, unrealized loss/(gain) on derivatives
   and unrealized foreign exchange loss/(gain), net, is an industry standard
9. used to assist in evaluating a company's ability to make quarterly cash
   distributions. Net income as adjusted for non-cash items is not recognized
   by accounting principles generally accepted in the United States and should
   not be considered as an alternative to net income or any other indicator of
   the Company's performance required by accounting principles generally
   accepted in the United States.

Fourth Quarter 2012 Dividend Announcement 
On February 27, 2013, the Company's Board of Directors declared a fourth
quarter 2012 dividend of $0.01 per share payable on March 27, 2013 to
shareholders of record as of March 13, 2013. The dividend amount was
determined in accordance with the Company's dividend policy of paying cash
dividends on a quarterly basis subject to factors including the requirements
of Marshall Islands law, future earnings, capital requirements, financial
condition, future prospects and such other factors as are determined by the
Company's Board of Directors. The Company anticipates retaining most of its
future earnings, if any, for use in operations and business expansion.

Conference Call and Webcast Information 
Aegean Marine Petroleum Network Inc. will conduct a conference call and
simultaneous Internet webcast on  Thursday, February 28, 2013 at 8:30 a.m.
Eastern Time, to discuss its fourth quarter results.  Investors may access the
webcast and related slide presentation, by visiting the Company's website at
www.ampni.com, and clicking on the webcast link.  The conference call also may
be accessed via telephone by dialing (888) 471-3843 (for U.S.-based callers)
or (719) 785-1753 (for international callers) and enter the passcode:
6428029. 

A replay of the webcast will be available soon after the completion of the
call and will be accessible on www.ampni.com.  A telephone replay will be
available through March 14, 2013 by dialing (888) 203-1112 or (for U.S.-based
callers) or (719) 457-0820 (for international callers) and enter the passcode:
6428029.

About Aegean Marine Petroleum Network Inc.  
Aegean Marine Petroleum Network Inc. is an international marine fuel logistics
company that markets and physically supplies refined marine fuel and
lubricants to ships in port and at sea. The Company procures product from
various sources (such as refineries, oil producers, and traders) and resells
it to a diverse group of customers across all major commercial shipping
sectors and leading cruise lines. Currently, Aegean has a global presence in
20 markets, including Vancouver, Montreal, Mexico, Jamaica, Trinidad and
Tobago, West Africa, Gibraltar, U.K., Northern Europe, Piraeus, Patras, the
United Arab Emirates, Singapore, Morocco, the Antwerp-Rotterdam-Amsterdam
(ARA) region, Las Palmas, Tenerife, Panama and Hong Kong, and plans to
commence operations in Barcelona, Spain during the first quarter of 2013. The
Company has also entered into a strategic alliance to extend its global reach
to China. To learn more about Aegean, visit http://www.ampni.com.

Cautionary Statement Regarding Forward-Looking Statements 
Matters discussed in this press release may constitute forward-looking
statements.  The Private Securities Litigation Reform Act of 1995 provides
safe harbor protections for forward-looking statements in order to encourage
companies to provide prospective information about their business. 
Forward-looking statements include statements concerning plans, objectives,
goals, strategies, future events or performance, and underlying assumptions
and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 and is including this
cautionary statement in connection with this safe harbor legislation. The
words "believe," "intend," "anticipate," "estimate," "project," "forecast,"
"plan," "potential," "may," "should," "expect" and similar expressions
identify forward-looking statements. The forward-looking statements in this
press release are based upon various assumptions, many of which are based, in
turn, upon further assumptions, including without limitation, our management's
examination of historical operating trends, data contained in our records and
other data available from third parties. Although we believe that these
assumptions were reasonable when made, because these assumptions are
inherently subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond our control, we cannot
assure you that we will achieve or accomplish these expectations, beliefs or
projections.

In addition to these important factors, other important factors that, in our
view, could cause actual results to differ materially from those discussed in
the forward-looking statements include our ability to manage growth, our
ability to maintain our business in light of our proposed business and
location expansion, our ability to obtain double hull secondhand bunkering
tankers, the outcome of legal, tax or regulatory proceedings to which we may
become a party, adverse conditions in the shipping or the marine fuel supply
industries, our ability to retain our key suppliers and key customers,
material disruptions in the availability or supply of crude oil or refined
petroleum products, changes in the market price of petroleum, including the
volatility of spot pricing, increased levels of competition, compliance or
lack of compliance with various environmental and other applicable laws and
regulations, our ability to collect accounts receivable, changes in the
political, economic or regulatory conditions in the markets in which we
operate, and the world in general, our failure to hedge certain financial
risks associated with our business, our ability to maintain our current tax
treatments and our failure to comply with restrictions in our credit
agreements and other factors.  Please see our filings with the Securities and
Exchange Commission for a more complete discussion of these and other risks
and uncertainties.

 

 

SOURCE Aegean Marine Petroleum Network Inc.

Website: http://www.ampni.com
Contact: Aegean Marine Petroleum Network Inc., +1-203-595-5184