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



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

PR Newswire

PIRAEUS, Greece, Nov. 13, 2013

PIRAEUS, Greece, Nov. 13, 2013 /PRNewswire/ -- Aegean Marine Petroleum Network
Inc. (NYSE: ANW) ("Aegean" or the "Company") today announced financial and
operating results for the third quarter ended September 30th, 2013.

Third Quarter Highlights

  o Recorded sales volumes of 2,496,457 metric tons.
  o Reported gross profit of $70.8 million.
  o Recorded operating income of $12.4 million.
  o Recorded net income attributable to Aegean shareholders of $7.3 million or
    $0.16 basic and diluted earnings per share.
  o Reported EBITDA of $20.1 million.^1
  o Completed $1 billion secured multicurrency revolving credit facilities
  o Successfully executed $86 million convertible note offering

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

E. Nikolas Tavlarios, President, commented, "Our third quarter results and
strong financial position demonstrate our continued success in extending our
track record of profitability while navigating the challenging dynamics of our
market. While the bunkering business remains dynamic, we have taken advantage
of the current macroeconomic environment to streamline our expenses and
increase our earnings power."

Mr. Tavlarios continued, "Our recent definitive agreement to acquire the Hess
Corporation's U.S. East Coast bunkering business is a strong example of our
execution. This transaction, which is fully aligned with our strategy,
increases both our exposure to U.S. clients and new profitable growth
opportunities. With minimal start-up costs this transaction will allow Aegean
Marine to strategically expand our global presence. We continue to
successfully execute a strategy to generate and sustain strong results and are
excited about our opportunities to build significant shareholder value."

The Company achieved net income attributable to Aegean shareholders for the
three months ended September 30, 2013 of $7.3 million, or $0.16 basic and
diluted earnings per share. For the three months ended September 30, 2012, the
Company recorded net income attributable to AMPNI shareholders of $8.0
million, or $0.17 basic and diluted earnings per share.

Total revenues for the three months ended September 30, 2013, decreased by
12.2% to $1,602.0 million compared with $1.825.3 million reported for the same
period in 2012. For the three months ended September 30, 2013, sales of marine
petroleum products decreased by 12.2% to $1,590.2 million compared with
$1,810.5 million for the same period in 2012. Gross profit, which equals total
revenue less directly attributable cost of revenue decreased by 4.8% to $70.8
million in the third quarter of 2013 compared with $74.4 million in the same
period in 2012.

For the three months ended September 30, 2013, the volume of marine fuel sold
by the Company decreased by 8.1% to 2,496,457 metric tons compared with
2,716,388 metric tons in the same period in 2012.

Operating income for the third quarter of 2013 amounted to $12.4 million
compared to $15.1 million for the same period in 2012. Operating expenses
decreased by $0.9 million, or 1.5%, to $58.4 million for the three months
ended September 30, 2013, compared with $59.3 million for the same period in
2012.

Liquidity and Capital Resources

Net cash provided by operating activities was $26.1 million for the three
months ended September 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 $7.2 million for the three months
ended September 30, 2013, largely due to the advances for other fixed assets
under construction.

Net cash used in financing activities was $9.8 million for the three months
ended September 30, 2013, primarily driven by the net change in short term
borrowings.

As of September 30, 2013, the Company had cash and cash equivalents of $72.4
million and working capital of $187.2 million. Non-cash working capital, or
working capital excluding cash and debt, was $468.6 million. 

As of September 30, 2013, the Company had $583.7 million in available
liquidity, which includes unrestricted cash and cash equivalents of $72.4
million and available undrawn amounts under the Company's working capital
facilities of $511.3 million, to finance working capital requirements.

The weighted average basic and diluted shares outstanding for the three months
ended September 30, 2013 were 45,681,518. The weighted average basic and
diluted shares outstanding for the three months ended September 30, 2012 were
45,487,844.

Spyros Gianniotis, Chief Financial Officer, stated, "We continue to see the
benefits of our efforts to streamline our expense structure, leverage our
model and strengthen our financial flexibility. During the quarter we
successfully signed multicurrency revolving credit facilities valued at
approximately $1 billion, which was a significant milestone for Aegean Marine.
These facilities provide important liquidity that will support our ability to
continue to expand Aegean Marine's global market share and pursue new
profitable revenue growth opportunities.  Today, Aegean Marine's capital
structure is the strongest it has ever been and we are confident that our
financial and operating models will allow the Company to deliver significant
returns over the long-term."

Summary Consolidated                                  For the Nine Months
Financial and          For the Three Months Ended     Ended      

Other Data             September 30,                  September 30,
(Unaudited)
                       2012            2013              2012        2013
                       (in thousands of U.S. dollars, unless otherwise stated)
Income Statement
Data:
Revenues - third     $ 1,814,147   $   1,595,104      $  5,478,829 $ 4,841,082
parties
Revenues - related     11,124          6,880             45,417      23,217
companies
Total revenues         1,825,271       1,601,984         5,524,246   4,864,299
Cost of revenues  -    1,637,705       1,323,487         4,937,503   4,323,548
third parties
Cost of revenues–      113,177         207,676           355,943     329,725
related companies
Total cost of          1,750,882       1,531,163         5,293,446   4,653,273
revenues
Gross profit           74,389          70,821            230,800     211,026
Operating expenses:
Selling and            51,162          51,068            159,502     150,646
distribution
General and            7,774           6,934             22,194      21,174
administrative
Amortization of        379             380               1,130       1,130
intangible assets
Loss on sale of        -               37                4,218       3,817
vessels, net
Operating income       15,074          12,402            43,756      34,259
Net financing cost     7,927           6,497             24,981      19,733
Gain on sale of        -               -                 -           (4,174)
subsidiary, net
Foreign exchange       (2,103)         (424)             (2,804)     (753)
gains, net
Income taxes expense   510             (951)             2,783       (555)
/ (income)
Net income             8,740           7,280             18,796      20,008
Less income/(loss)
attributable to        722             (45)              2,063       (43)
non-controlling
interest
Net income
attributable to      $ 8,018       $   7,325          $  16,733    $ 20,051
AMPNI shareholders
Basic earnings per   $ 0.17        $   0.16           $  0.36      $ $0.43
share (U.S. dollars)
Diluted earnings per $ 0.17        $   0.16           $  0.36      $ $0.43
share (U.S. dollars)
EBITDA^(1)           $ 24,574      $   20,099         $  68,114    $ 60,839
Other Financial
Data:
Gross spread on
marine petroleum     $ 63,933      $   65,249         $  204,141   $ 191,695
products^(2)
Gross spread on        858             827               2,149       2,982
lubricants^(2)
Gross spread on        63,075          64,422            201,992     188,713
marine fuel^(2)
Gross spread per
metric ton of marine
                       23.2            25.8              25.6        25.0
fuel sold (U.S.
dollars) ^ (2)
Net cash provided by $ 22,213      $   26,062         $  79,856    $ 1,878
operating activities
Net cash used in       (10,599)        (7,170)           (29,238)    (30,531)
investing activities
Net cash (used in)
provided by            (20,739)        (9,809)           (42,008)    23,584
financing activities
Sales Volume Data
(Metric Tons): ^ (3)
Total sales volumes    2,716,388       2,496,457         7,891,794   7,556,685
Other Operating
Data:
Number of owned
bunkering tankers,     57.0            53.0              57.0        53.0
end of period^(4)
Average number of
owned bunkering        57.0            53.6              57.5        54.4
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,   September 30,

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

                                                unless otherwise stated)
Balance Sheet Data:
Cash and cash equivalents                       77,246         72,447
Gross trade receivables                         477,738        488,231
Allowance for doubtful accounts                 (3,503)        (2,597)
Inventories                                     180,826        197,072
Current assets                                  786,604        808,838
Total assets                                    1,431,843      1,473,609
Trade payables                                  242,899        235,373
Current liabilities (including current portion  734,751        621,605
of long-term debt)
Total debt                                      653,286        685,234
Total liabilities                               927,325        950,806
Total stockholder's equity                      504,518        522,803
Working Capital Data:
Working capital^(8)                             51,853         187,233
Working capital excluding cash and debt^(8)     433,484        468,606

 

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

                             unless otherwise stated)
Net income attributable      8,018                         7,325
to AMPNI shareholders
  Add: Net financing
cost including
amortization                 7,927                         6,497

of financing costs
  Add/ (Less): Income        510                           (951)
tax expense/ (income)
  Add: Depreciation and
amortization excluding
                             8,119                         7,228
amortization of
financing costs
EBITDA                       24,574                        20,099
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 

                             September 30,
                             2012                          2013
Sales of marine              1,810,525                     1,590,161
petroleum products
 Less: Cost of marine        (1,746,592)                   (1,524,912)
petroleum products sold
Gross spread on marine       63,933                        65,249
petroleum products
 Less: Gross spread on       (858)                         (827)
lubricants
Gross spread on marine       63,075                        64,422
fuel
Sales volume of marine       2,716,388                     2,496,457
fuel (metric tons)
Gross spread per metric
ton of marine                23.2                          25.8

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,
Portland (U.K.), Trinidad and Tobago (Southern Caribbean), Tangiers (Morocco),
Las Palmas, Tenerife, Panama, Hong Kong, Barcelona, Algeciras 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. The Company owns one Aframax tanker, the Leader as a floating storage
facility in the United Arab Emirates, 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 operates
on-land storage facilities in Portland, Las Palmas, Tangiers, Panama and
Barcelona.

 

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.

Third Quarter 2013 Dividend Announcement

On November 13, 2013, the Company's Board of Directors declared a third
quarter 2013 dividend of $0.01 per share payable on December 11, 2013 to
shareholders of record as of November 27, 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, November 14, 2013 at 8:30 a.m.
Eastern Time, to discuss its third 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 (877) 591-4953 (for U.S.-based callers)
or (719) 325-4896 (for international callers) and enter the passcode:
8936366. 

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 November 28, 2013 by dialing (888) 203-1112 or (for
U.S.-based callers) or (719) 457-0820 (for international callers) and enter
the passcode: 8936366.

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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