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Aegean Marine Petroleum Network Inc. Announces Second Quarter 2013 Financial Results



 Aegean Marine Petroleum Network Inc. Announces Second Quarter 2013 Financial
                                   Results

PR Newswire

PIRAEUS, Greece, Aug. 19, 2013

PIRAEUS, Greece, Aug. 19, 2013 /PRNewswire/ -- Aegean Marine Petroleum Network
Inc. (NYSE: ANW) ("Aegean" or the "Company") today announced financial and
operating results for the second quarter ended June 30, 2013.

Second Quarter Highlights

  o Sales volumes of 2,693,151 metric tons. 
  o Gross profit of $69.5 million.
  o Operating income of $12.7 million.

       o Operating income adjusted for the sale of non-core assets was $13.2
         million. 

  o Net income attributable to Aegean shareholders of $5.5 million or $0.12
    basic and diluted earnings per share.

       o Net income attributable to Aegean shareholders adjusted for the sale
         of non-core assets was $6.1 million or $0.13 basic and diluted
         earnings per share.

  o EBITDA of $19.7 million. [1]

       o EBITDA adjusted for the sale of non-core assets was $20.2 million.

[1] Please see below for a reconciliation of EBITDA, a non-GAAP measure, to
net income.

E. Nikolas Tavlarios, President, commented, "We extended our track record of
operational excellence and strong financial performance in the second quarter,
which represented Aegean's tenth consecutive quarter of profitability.  During
the quarter we entered new markets to strengthen our revenue base,
strategically positioning Aegean for continued success as the market emerges
from the current shipping cycle."

Mr. Tavlarios continued, "We are taking the right steps to sustain growth and
position Aegean for opportunities as they emerge. Our expansion into the Port
of Algeciras will increase our presence in the rapidly growing Western
Mediterranean market, further diversify our revenue base and improve our fleet
utilization. During the quarter we also announced a cooperation agreement with
SK Lubricants, which will expand our operations in Asia and increase volumes
in our marine lubricants business. As we move into the second half of the
fiscal year, we will continue to execute our strategy of strengthening our
industry leadership and enhancing shareholder value."

The Company achieved net income attributable to Aegean shareholders for the
three months ended June 30, 2013 of $5.5 million, or $0.12 basic and diluted
earnings per share.  Net income attributable to Aegean shareholders excluding
a loss from the sale of non-core assets was $6.1 million or $0.13 basic and
diluted earnings per share.  For the three months ended June 30, 2012 the
Company recorded net income attributable to AMPNI shareholders of $2.7
million, or $0.06 basic and diluted earnings per share. Net income for the
three months ended June 30, 2012 adjusted for the sale of non-core assets was
$6.9 million or $0.15 basic and diluted earnings per share.

Total revenues for the three months ended June 30, 2013, decreased by 10.4% to
$1,691.8 million as compared to $1,888.1 million reported for the same period
in 2012. For the three months ended June 30, 2013, sales of marine petroleum
products decreased by 10.3% to $1,680.9 million compared to $1,874.6 million
for the same period in 2012. Gross profit, which equals total revenue less
directly attributable cost of revenue decreased by 13.1% to $69.5 million in
the second quarter of 2013 compared to $80.0 million in the same period in
2012.

For the three months ended June 30, 2013, the volume of marine fuel sold by
the Company decreased by 0.8% to 2,693,151 metric tons compared to 2,714,176
metric tons in the same period in 2012.

Operating income excluding a non-cash loss from the sale of an older, non-core
vessel for the second quarter of 2013 amounted to $13.2 million compared to
$19.5 million for the same period in 2012. Operating expenses excluding the
non-cash loss from the sale of vessels decreased by $4.2 million, or 6.9%, to
$56.3 million for the three months ended June 30, 2013, compared to $60.5
million for the same period in 2012.

Liquidity and Capital Resources

Net cash used in operating activities was $66.4 million for the three months
ended June 30, 2013. Net income, as adjusted for non-cash items (as defined in
Note 9) was $14.7 million for the period.

Net cash used in investing activities was $20.3 million for the three months
ended June 30, 2013, largely due to the advances for other fixed assets under
construction.

Net cash provided by financing activities was $87.5 million for the three
months ended June 30, 2013, primarily driven by the net change in short term
borrowings.

As of June 30, 2013, the Company had cash and cash equivalents of $62.9
million and working capital of $36.1 million. Non-cash working capital, or
working capital excluding cash and debt, was $481.0 million.  

As of June 30, 2013, the Company had $376.3 million in available liquidity,
which includes unrestricted cash and cash equivalents of $62.9 million and
available undrawn amounts under the Company's working capital facilities of
$265.7 million, to finance working capital requirements.

The weighted average basic and diluted shares outstanding for the three months
ended June 30, 2013 were 45,681,518. The weighted average basic and diluted
shares outstanding for the three months ended June 30, 2012 were 45,465,514.

Spyros Gianniotis, Chief Financial Officer, stated, "Our second quarter
results demonstrate Aegean's ability to operate safely and profitably while
establishing additional revenue streams and adapting to fluctuating industry
conditions.  As part of our commitment to strengthen our financial
flexibility, we have launched the syndication of our $800 million
multicurrency credit facilities during the quarter, a significant milestone
for our company. Combined with supplier credit, our new multicurrency credit
facilities will allow Aegean to continue to manage volatile marine fuel prices
and to further improve its supply and trading performance. We appreciate the
support of our lenders and their confidence in our ability to continue
delivering profitable revenue growth."

Summary Consolidated Financial and Other Data (Unaudited)
                       For the Three Months        For the Six Months
                       Ended June 30,              Ended June 30,
                       2012           2013            2012          2013
                       (in thousands of U.S. dollars, unless otherwise stated)
Income Statement
Data:
Revenues - third     $ 1,871,757   $  1,682,076    $  3,664,682  $  3,245,978
parties
Revenues - related     16,303         9,748           34,293        16,337
companies
Total revenues         1,888,060      1,691,824       3,698,975     3,262,315
Cost of revenues  -    1,651,477      1,583,580       3,299,798     3,000,061
third parties
Cost of revenues–      156,573        38,762          242,766       122,049
related companies
Total cost of          1,808,050      1,622,342       3,542,564     3,122,110
revenues
Gross profit           80,010         69,482          156,411       140,205
Operating expenses:
Selling and            52,780         48,622          108,340       99,578
distribution
General and            7,360          7,275           14,420        14,240
administrative
Amortization of        375            374             751           750
intangible assets
Loss on sale of        4,218          512             4,218         3,780
vessels, net
Operating income       15,277         12,699          28,682        21,857
Net financing cost     8,501          7,083           17,054        13,236
Gain on sale of        -              -               -             (4,174)
subsidiary, net
Foreign exchange       953            70              (701)         (329)
(gains) losses, net
Income taxes expense   2,048          (15)            2,273         396
/ (income)
Net income             3,775          5,561           10,056        12,728
Less income
attributable to        1,065          21              1,341         2
non-controlling
interest
Net income
attributable to      $ 2,710       $  5,540        $  8,715      $  12,726
AMPNI shareholders
Basic earnings per   $ 0.06        $  0.12         $  0.19       $  $0.27
share (U.S. dollars)
Diluted earnings per $ 0.06        $  0.12         $  0.19       $  $0.27
share (U.S. dollars)
EBITDA^(1)           $ 21,007      $  19,719       $  43,539     $  40,740
Other Financial
Data:
Gross spread on
marine petroleum     $ 71,281      $  63,262       $  140,208    $  126,446
products^(2)
Gross spread on        545            1,096           1,291         2,155
lubricants^(2)
Gross spread on        70,736         62,166          138,917       124,291
marine fuel^(2)
Gross spread per
metric ton of marine
                       26.1           23.1            26.8          24.6
fuel sold (U.S.
dollars) ^ (2)
Net cash provided by
(used in) operating  $ 86,301      $  (66,365)     $  57,643     $  (24,184)
activities
Net cash used in       (7,661)        (20,341)        (18,639)      (23,361)
investing activities
Net cash provided by
(used in) financing    (21,572)       87,524          (21,269)      33,393
activities
Sales Volume Data
(Metric Tons): ^ (3)
Total sales volumes    2,714,176      2,693,151       5,175,406     5,060,228
Other Operating
Data:
Number of owned
bunkering tankers,     57.0           54.0            57.0          54.0
end of period^(4)
Average number of
owned bunkering        57.4           54.2            57.7          54.8
tankers^(4)(5)
Special Purpose
Vessels, end of        1.0            1.0             1.0           1.0
period^(6)
Number of owned
storage facilities,    7.0            5.0             7.0           5.0
end of period^(7)

 

 

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

                                                December 31,     June 30,

                                                2012             2013
                                                (in thousands of U.S. dollars,

                                                unless otherwise stated)
Balance Sheet Data:
Cash and cash equivalents                       77,246           62,875
Gross trade receivables                         477,738          500,332
Allowance for doubtful accounts                 (3,503)          (3,072)
Inventories                                     180,826          200,747
Current assets                                  786,795          815,539
Total assets                                    1,431,843        1,474,895
Trade payables                                  242,899          239,085
Current liabilities (including current portion  734,751          779,398
of long-term debt)
Total debt                                      653,286          690,788
Total liabilities                               927,325          960,184
Total stockholder's equity                      504,518          514,711
Working Capital Data:
Working capital^(8)                             51,853           36,141
Working capital excluding cash and debt^(8)     433,484          480,975

Notes:

1. 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 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 June 30,
                                               2012            2013
                                               (in thousands of U.S. dollars,

                                               unless otherwise stated)
Net income attributable to AMPNI shareholders  2,710           5,540
Add: Net financing cost including amortization 8,501           7,083
   of financing costs
  Add/ (Less): Income tax expense/ (income)    2,048           (15)
  Add: Depreciation and amortization excluding 7,748           7,111
   amortization of financing costs
EBITDA                                         21,007          19,719

2. 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 lubricants are not items recognized by U.S. GAAP and
should 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 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 June 30,
                                             2012         2013
Sales of marine petroleum products           1,874,552    1,680,923
Less: Cost of marine petroleum products sold (1,803,271)  (1,617,661)
Gross spread on marine petroleum products    71,281       63,262
Less: Gross spread on lubricants             (545)        (1,096)
Gross spread on marine fuel                  70,736       62,166
Sales volume of marine fuel (metric tons)    2,714,176    2,693,151
Gross spread per metric ton of marine
                                             26.1         23.1
  fuel sold (U.S. dollars)

3. Sales volume of marine fuel is the volume of sales of various
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, Vancouver,
Montreal, Mexico, Portland (U.K.), Trinidad and Tobago (Southern Caribbean),
Tangiers (Morocco), Las Palmas, Tenerife, Panama, Hong Kong, Barcelona and
Greece, where the Company conducts operations through its related company,
Aegean Oil. 

4. Bunkering fleet comprises both bunkering vessels and barges. 

5. 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
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. 

7. As of June 30, 2013, the Company owned one Aframax tanker, the Leader as a
floating storage facility in the United Arab Emirates. Additionally, the
Company operates a 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, Panama, Barcelona and Algeciras.

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.

8. Working capital is defined as current assets minus current liabilities.
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.

9. 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 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.

Second Quarter 2013 Dividend Announcement
On August 19, 2013, the Company's Board of Directors declared a second quarter
2013 dividend of $0.01 per share payable on September 16, 2013 to shareholders
of record as of September 2, 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 Tuesday, August 20, 2013 at 8:30 a.m. Eastern
Time, to discuss its second 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) 455-2260 (for U.S.-based callers)
or (719) 325-2463 (for international callers) and enter the passcode:
8677165. 

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 September 3, 2013 by dialing (888) 203-1112 or (for
U.S.-based callers) or (719) 457-0820 (for international callers) and enter
the passcode: 8677165.

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
21 markets, including Vancouver, Montreal, Mexico, Jamaica, Trinidad and
Tobago, Gibraltar, U.K., Northern Europe, Piraeus, Patras, the United Arab
Emirates, Singapore, Morocco, the Antwerp-Rotterdam-Amsterdam (ARA) region,
Las Palmas, Tenerife, Panama, Hong Kong, Barcelona and Algeciras. 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., (203) 595-5184
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