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

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

PR Newswire

PIRAEUS, Greece, Feb. 26, 2014

PIRAEUS, Greece, Feb. 26, 2014 /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^st, 2013.

Fourth Quarter Highlights and Full Year Highlights

  oRecorded sales volumes of 2,384,376 metric tons in Q4 2013 and 9,941,061
    for the full year.
  oRecorded gross profit of $75.0 million in Q4 2013 and $286.0 million for
    the full year.
  oRecorded operating income of $14.5 million for the quarter and $48.8
    million for the full year.
  oRecorded net income attributable to Aegean shareholders of $7.0 million or
    $0.15 basic diluted earnings per share in Q4 2013 and $27.1 million or
    $0.58 basic and diluted earnings per share for the full year.

       oNet income attributable to Aegean shareholders adjusted for the sale
         of non-core assets was $7.5 million or $0.16 basic and diluted
         earnings per share in Q4 2013 and $27.2 or $0.58 basic diluted
         earnings per share for the full year.

  oRecorded EBITDA of $22.4 million in Q4 2013 and $83.2 million for the full
    year.

       oEBITDA adjusted for the sale of non-core assets was $22.9 million in
         Q4 2013 and $83.4 million for the full year. ^1

  oAcquired Hess Corporation's U.S. East Coast bunkering business unit and
    launched Aegean US East Coast Operations.
  oSuccessfully executed $86.3 million convertible note offering.

"We closed 2013 with great momentum and the fourth quarter marked our third
consecutive full year of profitability," said E. Nikolas Tavlarios, President
of Aegean Marine Petroleum Network. "Despite persisting market headwinds, we
executed on our strategy and once again demonstrated the strength of our
business model and our ability to drive compelling returns in a challenging
environment. By leveraging our flexible infrastructure, we successfully drove
profitable top-line growth and opportunistically captured additional voyage
and storage revenues. At the same time, we monetized non-core vessels, which
will allow Aegean to further drive profitability by increasing our fleet
utilization over time, reducing our capital expenditures and streamlining our
expense run-rate."

"We have built a steady track record of growth and we believe that the
continued execution on our core initiatives will enhance shareholder value,"
said Mr. Tavlarios. "We continue to build significant and sustainable internal
growth drivers, including our new Aegean U.S. East Coast business and our
soon-to-be launched Fujairah storage facility, which we believe will allow
Aegean to continue to succeed should market headwinds persist. For 2014,
however, we are beginning to see indications that the macro environment will
improve steadily throughout the year, and we believe Aegean is uniquely
positioned to incrementally benefit from this strengthening market."

The Company achieved net income attributable to Aegean shareholders for the
three months ended December 31, 2013 of $7.0 million, or $0.15 basic diluted
earnings per share. Net income attributable to Aegean shareholders excluding
a non-cash loss from the sale of non-core assets was $7.5 million or $0.16
basic and diluted earnings per share. For the three months ended December 31,
2012, the Company recorded net income attributable to Aegean shareholders of
$3.3 million, or $0.07 basic and diluted earnings per share. Net income
attributable to Aegean 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.

Total revenues for the three months ended December 31, 2013, decreased by
15.2% to $1,470.4 million compared with $1,734.7 million reported for the same
period in 2012. For the three months ended December 31, 2013, sales of marine
petroleum products decreased by 15.7% to $1,453.0 million compared with $1,724
million for the same period in 2012. Gross profit, which equals total revenue
less directly attributable cost of revenue increased by 4.5% to $75.0 million
in the fourth quarter of 2013 compared with $71.8 million in the same period
in 2012.

For the three months ended December 31, 2013, the volume of marine fuel sold
by the Company decreased by 12.6% to 2,384,376 metric tons compared with
2,729,070 metric tons in the same period in 2012.

Operating income for the fourth quarter of 2013 amounted to $14.5 million
compared to $11.3 million for the same period in 2012. Operating expenses
decreased by $0.1 million, or 0.2%, to $60.5 million for the three months
ended December 31, 2013, compared with $60.6 million for the same period in
2012.

Liquidity and Capital Resources

Net cash provided by operating activities was $38.7 million for the three
months ended December 31, 2013. Net income, as adjusted for non-cash items (as
defined in Note 9) was $18.0 million for the period. 

Net cash used in investing activities was $151.3 million for the three months
ended December 31, 2013, due to our new acquisition in U.S. East Coast and to
the advances for other fixed assets under construction.

Net cash provided by financing activities was $102.4 million for the three
months ended December 31, 2013, primarily driven by our new facility to
finance the purchase of the inventories in the U.S. East Coast.

As of December 31, 2013, the Company had cash and cash equivalents of $62.6
million and working capital of $244.5 million. Non-cash working capital, or
working capital excluding cash and debt, was $541.9 million.

As of December 31, 2013, the Company had $615.0 million in available
liquidity, which includes unrestricted cash and cash equivalents of $62.6
million and available undrawn amounts under the Company's working capital
facilities of $552.4 million, to finance working capital requirements.

The weighted average basic and diluted shares outstanding for the three months
ended December 31, 2013 were 45,685,472. The weighted average basic and
diluted shares outstanding for the three months ended December 31, 2012 were
45,501,233.

Spyros Gianniotis, Aegean's Chief Financial Officer, stated, "Our focus on
growing revenues and strategically leveraging our fixed infrastructure to
drive profitability continues to yield strong results. During the quarter we
built on our track record of solid financial performance and believe we are
very well positioned for the year ahead. We have also continued to maintain
our financial flexibility and with the recent establishment of our $150
million credit facility, we now have a total of approximately $1.3 billion in
revolving bank borrowing capacity, which will allow us to support our key
expansion initiatives such as Aegean Bunkering USA. Our strong financial
position and dynamic business model distinguish Aegean from the competitive
landscape and we look forward to building on our history of enhancing value
for our shareholders."

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



Summary Consolidated       For the Three Months Ended For the Year Ended
Financial and
                           December 31,               December 31,
Other Data (Unaudited)
                           2012          2013           2012         2013
                           (in thousands of U.S. dollars, unless otherwise
                           stated)
Income Statement Data:
Revenues - third parties $ 1,728,984  $  1,463,047    $ 7,207,813  $ 6,304,129
Revenues - related         5,730         7,383          51,147       30,600
companies
Total revenues             1,734,714     1,470,430      7,258,960    6,334,729
Cost of revenues -        1,558,824     1,299,902      6,496,327    5,623,450
third parties
Cost of revenues–          104,041       95,562         459,984      425,287
related companies
Total cost of revenues     1,662,865     1,395,464      6,956,311    6,048,737
Gross profit               71,849        74,966         302,649      285,992
Operating expenses:
Selling and distribution   50,734        50,951         210,236      201,598
General and                7,703         8,553          29,897       29,727
administrative
Amortization of            375           473            1,505        1,603
intangible assets
Loss on sale of vessels,   1,748         495            5,966        4,312
net
Operating income           11,289        14,494         55,045       48,753
Net financing cost         6,088         8,265          31,069       27,998
(Gain) Loss on sale of     -             -              -            (4,174)
subsidiary, net
Foreign exchange gains,    (982)         (370)          (3,786)      (1,123)
net
Other expense              1,191         -              1,191        -
Income taxes expense /     1,339         (423)          4,122        (978)
(income)
Net income                 3,653         7,022          22,449       27,030
Less income/(loss)
attributable to            309           10             2,372        (33)
non-controlling interest
Net income attributable  $ 3,344      $  7,012        $ 20,077     $ 27,063
to AMPNI shareholders
Basic earnings per share $ 0.07       $  0.15         $ 0.44       $ $0.58
(U.S. dollars)
Diluted earnings per     $ 0.07       $  0.15         $ 0.44       $ $0.58
share (U.S. dollars)
EBITDA^(1)               $ 18,334     $  22,392       $ 86,448     $ 83,231
Other Financial Data:
Gross spread on marine   $ 64,663     $  65,029       $ 268,804    $ 256,724
petroleum products^(2)
Gross spread on            928           932            3,077        3,914
lubricants^(2)
Gross spread on marine     63,735        64,097         265,727      252,810
fuel^(2)
Gross spread per metric
ton of marine
                           23.4          26.9           25.0         25.4
fuel sold (U.S. dollars)
^ (2)
Net cash provided by     $ 42,472     $  38,705       $ 123,519    $ 40,583
operating activities
Net cash used in           (27,733)      (151,290)      (58,162)     (181,821)
investing activities
Net cash (used in)
provided by financing      (15,119)      102,394        (57,127)     125,978
activities
Sales Volume Data
(Metric Tons): ^ (3)
Total sales volumes        2,729,070     2,384,376      10,620,864   9,941,061
Other Operating Data:
Number of owned
bunkering tankers, end     57.0          51.0           57.0         51.0
of period^(4)
Average number of owned    57.0          52.3           58.4         53.8
bunkering tankers^(4)(5)
Special Purpose Vessels,   1.0           1.0            1.0          1.0
end of period^(6)
Number of operating
storage facilities, end    8.0           14.0           8.0          14.0
of period^(7)



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

                                                December 31,    December 31,

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

                                                unless otherwise stated)
Balance Sheet Data:
Cash and cash equivalents                       77,246          62,575
Gross trade receivables                         477,738         472,543
Allowance for doubtful accounts                 (3,503)         (2,622)
Inventories                                     180,826         303,297
Current assets                                  786,604         896,730
Total assets                                    1,431,843       1,614,333
Trade payables                                  242,899         241,743
Current liabilities (including current portion  734,751         652,277
of long-term debt)
Total debt                                      653,286         783,317
Total liabilities                               927,325         1,070,587
Total stockholder's equity                      504,518         543,746
Working Capital Data:
Working capital^(8)                             51,853          244,453
Working capital excluding cash and debt^(8)     433,484         541,919



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 our calculation of EBITDA
       1. 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 December 31,
                                       2012                2013
                                       (in thousands of U.S. dollars,

                                       unless otherwise stated)
Net income attributable to AMPNI       3,344               7,012
shareholders
 Add: Net financing cost including
amortization                           6,088               8,265

 of financing costs
 Add/ (Less): Income tax expense/     1,339               (423)
(income)
 Add: Depreciation and amortization
excluding                              7,563               7,538

 amortization of financing costs
EBITDA                                 18,334              22,392



   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
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

                                             December 31,
                                             2012           2013
Sales of marine petroleum products           1,724,034      1,452,993
Less: Cost of marine petroleum products sold (1,659,371)    (1,387,964)
Gross spread on marine petroleum products    64,663         65,029
Less: Gross spread on lubricants             (928)          (932)
Gross spread on marine fuel                  63,735         64,097
Sales volume of marine fuel (metric tons)    2,729,070      2,384,376
Gross spread per metric ton of marine
                                             23.4           26.9
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, Vancouver,
   Portland (U.K.), Trinidad and Tobago (Southern Caribbean), Tangiers
   (Morocco), Las Palmas, Tenerife, Panama, Hong Kong, Barcelona, Algeciras,
   US East Coast 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.
   The Company owns one Aframax tanker, the Leader as a floating storage
   facility in the United Arab Emirates, a barge, the Mediterranean, as a
7. 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,
   U.S.A. 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.
   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 used to assist in
9. evaluating our 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 2013 Dividend Announcement
On February 26, 2014, the Company's Board of Directors declared a fourth
quarter 2013 dividend of $0.01 per share payable on March 26, 2014 to
shareholders of record as of March 12, 2014. 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 27, 2014 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) 428-9473 (for U.S.-based callers)
or (719) 325-2494 (for international callers) and enter the passcode:
3023210.

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 13, 2014 by dialing (888) 203-1112 or (for U.S.-based
callers) or (719) 457-0820 (for international callers) and enter the passcode:
3023210.

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
26 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, US East Coast 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., (212) 430-1098
 
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