Aegean Marine Petroleum Network Inc. Announces First Quarter 2014 Financial Results

 Aegean Marine Petroleum Network Inc. Announces First Quarter 2014 Financial
                                   Results

PR Newswire

PIRAEUS, Greece, May 21, 2014

PIRAEUS, Greece, May 21, 2014 /PRNewswire/ --Aegean Marine Petroleum Network
Inc. (NYSE: ANW) ("Aegean" or the "Company") today announced financial and
operating results for the first quarter ended March 31^st, 2014.

First Quarter Highlights

  oSales volumes of 2,705,823 metric tons.
  oGross profit of $82.9 million.
  oOperating income of $15.2 million.
  oNet income attributable to Aegean shareholders of $5.1 million or $0.11
    basic and diluted earnings per share.

       oNet income attributable to Aegean shareholders adjusted for the sale
         of non-core assets and vessel impairment charge was $8.7 million or
         $0.18 basic and diluted earnings per share.

  oEBITDA of $23.5 million.

       oEBITDA adjusted for the sale of non-core assets and vessel impairment
         charge was $27.0 million.

  oCompleted the sale of two older, non-core vessels.

E. Nikolas Tavlarios, President of Aegean Marine Petroleum Network, commented,
"During the quarter Aegean continued to build upon the momentum we established
across our business as we extended our track record of profitability and
growth. The sustainable growth drivers we have put in place enabled our team
to continue delivering positive results despite persistent industry headwinds.

Mr. Tavlarios continued, "With Aegean's U.S. East Coast operations
successfully integrated, we have strengthened our industry leadership and
global market share. We remain focused on diversifying our geographical
presence and increasing asset utilization both through the expected
introduction of our new Fujairah storage facility in the second half of 2014
and the potential addition of new service centers. In addition, with the sale
of two older, non-core vessels, Aegean continued to streamline its expense
structure and generate sustainable results. We are excited about our
opportunities to build significant shareholder value over the long-term."

The Company achieved net income attributable to Aegean shareholders for the
three months ended March 31, 2014 of $5.1 million, or $0.11 basic diluted
earnings per share. Net income attributable to Aegean shareholders excluding
a non-cash loss from the sale of non-core assets and vessel impairment charge
was $8.7 million or $0.18 basic and diluted earnings per share. For the three
months ended March 31, 2013, the Company recorded net income attributable to
Aegean shareholders of $7.2 million, or $0.15 basic and diluted earnings per
share. Net income attributable to Aegean shareholders excluding a non-cash
loss from the sale of non core vessels was $6.3 million or $0.13 basic and
diluted earnings per share.

Total revenues for the three months ended March 31, 2014, increased by 7.9% to
$1,694.4 million compared with $1,570.5 million reported for the same period
in 2013. For the three months ended March 31, 2014, sales of marine petroleum
products increased by 7.4% to $1,673.7 million compared with $1,558.4 million
for the same period in 2013. Gross profit, which equals total revenue less
directly attributable cost of revenue increased by 17.3% to $82.9 million in
the first quarter of 2014 compared with $70.7 million in the same period in
2013.

For the three months ended March 31, 2014, the volume of marine fuel sold by
the Company increased by 14.3% to 2,705,823 metric tons compared with
2,367,077 metric tons in the same period in 2013.

Operating income adjusted for the sale of non-core assets and vessel
impairment charge for the first quarter of 2014 amounted to $18.8 million
compared to $12.4 million for the same period in 2013. Operating expenses
increased by $5.8 million, or 10.0%, to $64.1 million for the three months
ended March 31, 2014, compared with $58.3 million for the same period in 2013.

Liquidity and Capital Resources

Net cash used in operating activities was $32.5 million for the three months
ended March 31, 2014. Net income, as adjusted for non-cash items (as defined
in Note 9) was $19.5 million for the period. 

Net cash used in investing activities was $14.2 million for the three months
ended March 31, 2014, mainly due to advances for other fixed assets under
construction and the acquisition of a second hand vessel.

Net cash provided by financing activities was $99.1 million for the three
months ended March 31, 2014, mainly used to finance our activities in the US
business.

As of March 31, 2014, the Company had cash and cash equivalents of $115.0
million and working capital of $239.9 million. Non-cash working capital, or
working capital excluding cash and debt, was $595.2 million.

As of March 31, 2014, the Company had $648.2 million in available liquidity,
which includes unrestricted cash and cash equivalents of $115.0 million and
available undrawn amounts under the Company's working capital facilities of
$533.2 million, to finance working capital requirements.

The weighted average basic and diluted shares outstanding for the three months
ended March 31, 2014 were 46,139,764. The weighted average basic and diluted
shares outstanding for the three months ended March 31, 2013 were 45,660,166
respectively.

Spyros Gianniotis, Aegean's Chief Financial Officer, stated, "Our strong
financial position and dynamic business model continues to distinguish Aegean
from the competitive landscape. In the first quarter, we continued to
streamline expenses and increase our earnings potential by targeting only the
most profitable business. We have built a solid foundation for profitable
growth and are confident that Aegean will remain on a positive trajectory as
the markets emerge from the current shipping cycle. Regardless of an
improvement in our operating environment, Aegean's business model has proved
to be immune to market fluctuations and is built to successfully deliver
financial results."





Summary Consolidated Financial and      For the Three Months Ended March 31,
Other Data (Unaudited)
                                        2013                2014
Income Statement Data:
Revenues - third parties              $ 1,563,902     $     1,690,184
Revenues - related companies            6,589               4,180
Total revenues                          1,570,491           1,694,364
Cost of revenues - third parties        1,416,481           1,524,724
Cost of revenues - related companies    83,287              86,729
Total cost of revenues                  1,499,768           1,611,453
Gross profit                            70,723              82,911
Operating expenses:
Selling and distribution                50,956              54,968
General and administrative              6,965               8,125
Amortization of intangible assets       376                 1,022
Loss/ (Gain) on sale of vessels, net    3,268               (493)
Vessel impairment charge                -                   4,062
Operating income/(expense)              9,158               15,227
Net financing cost                      (6,153)             (8,460)
Gain on sale of subsidiary, net         4,174               -
Foreign exchange gains, net             399                 249
Other expense                           -                   -
Income taxes expense                    (411)               (1,896)
Net income                              7,167               5,120
Less income attributable to             19                  24
non-controlling interest
Net income attributable to AMPNI      $ 7,186         $     5,096
shareholders
Basic earnings per share (U.S.        $ 0.15          $     0.11
dollars)
Diluted earnings per share (U.S.      $ 0.15          $     0.11
dollars)
EBITDA^(1)                            $ 21,021        $     23,456
Other Financial Data:
Gross spread on marine petroleum      $ 63,184        $     73,268
products^(2)
Gross spread on lubricants^(2)          1,059               902
Gross spread on marine fuel^(2)         62,125              72,366
Gross spread per metric ton of marine
                                        26.2                26.7
fuel sold (U.S. dollars) ^ (2)
Net cash provided by/(used in)        $ 42,181        $     (32,492)
operating activities
Net cash used in investing activities   (3,020)             (14,175)
Net cash provided by/(used in)          (54,131)            99,055
financing activities
Sales Volume Data (Metric Tons): ^
(3)
Total sales volumes                     2,367,077           2,705,823
Other Operating Data:
Number of owned bunkering tankers,      55.0                52.0
end of period^(4)
Average number of owned bunkering       55.4                52.0
tankers^(4)(5)
Special Purpose Vessels, end of         1.0                 1.0
period^(6)
Number of operating storage             6.0                 14.0
facilities, end of period^(7)



Summary Consolidated Financial and Other Data (Unaudited)

                                                As of            As of

                                                December 31,     March 31,

                                                2013             2014
                                                (in thousands of U.S. dollars,

                                                unless otherwise stated)
Balance Sheet Data:
Cash and cash equivalents                       62,575           114,953
Gross trade receivables                         472,543          547,199
Allowance for doubtful accounts                 (2,622)          (3,010)
Inventories                                     303,297          272,654
Current assets                                  896,730          994,824
Total assets                                    1,616,185        1,718,949
Trade payables                                  241,743          246,810
Current liabilities (including current portion  652,277          754,924
of long-term debt)
Total debt                                      783,317          883,668
Total liabilities                               1,072,439        1,169,675
Total stockholder's equity                      543,746          549,274
Working Capital Data:
Working capital^(8)                             244,453          239,900
Working capital excluding cash and debt^(8)     541,919          595,230



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 March 31,
                                          2013               2014
                                          (in thousands of U.S. dollars,

                                          unless otherwise stated)
Net income attributable to AMPNI          7,186              5,096
shareholders
Add: Net financing cost including         6,153              8,460
amortization of financing costs
 Add: Income tax expense                 411                1,896
 Add: Depreciation and amortization      7,271              8,004
excluding amortization of financing costs
EBITDA                                    21,021             23,456



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 March 31,
                                        2013                  2014
Sales of marine petroleum products      1,558,389             1,673,738
Less: Cost of marine petroleum products (1,495,205)           (1,600,470)
sold
Gross spread on marine petroleum        63,184                73,268
products
Less: Gross spread on lubricants        (1,059)               (902)
Gross spread on marine fuel             62,125                72,366
Sales volume of marine fuel (metric     2,367,077             2,705,823
tons)
Gross spread per metric ton of marine
                                        26.2                  26.7
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, 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.

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, 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.

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, impairment losses, unrealized loss/(gain) on
derivatives and unrealized foreign exchange loss/(gain), net, is used to
assist in 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.

First Quarter 2014 Dividend Announcement

On May 21, 2014, the Company's Board of Directors declared a first quarter
2014 dividend of $0.01 per share payable on June 18, 2014 to shareholders of
record as of June 4, 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, May 22, 2014 at 8:30 a.m. Eastern
Time, to discuss its first 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) 457-2727 (for international callers) and enter the passcode: 2998855.


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 June 5, 2014 by dialing (888) 203-1112 or (for U.S.-based
callers) or (719) 457-0820 (for international callers) and enter the passcode:
2998855.

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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