Thu 16 May 2013, 05:58 GMT

Aegean net income up 20% in Q1


Bunker supplier reports rise in net income despite fall in revenues and volume sold.



Aegean Marine Petroleum Network Inc. has announced that net income rose by $1.2 million, or 20%, to $7.2 million, or $0.15 basic and diluted earnings per share, during the first quarter of 2013 compared to $6.0 million, or $0.13 basic and diluted earnings per share, during the corresponding period last year.

Net income attributable to Aegean shareholders, excluding a gain from the sale of non-core assets, was $6.3 million, or $0.13 basic and diluted earnings per share.

Total revenues for the three months ended March 31, 2013, decreased by 13.3% to $1,570.5 million, compared to $1,810.9 million reported in 2012.

Gross profit, which equals total revenue less directly attributable cost of revenue, declined by 7.4% to $70.7 million, compared to $76.4 million during the first three months of 2012.

Sales of marine petroleum products fell by 13.4% to $1,558.4 million, compared to $1,799.3 million for the same period in 2012.

The volume of marine fuel sold by the company during the first quarter was down by 3.8% to 2,367,077 metric tonnes, compared to 2,461,230 metric tonnes the previous year.

Operating income excluding a non-cash loss from the sale of vessels for the first quarter of 2013 amounted to $12.4 million, compared to $13.4 million for the same period in 2012. Operating expenses excluding the non-cash loss from the sale of vessels decreased by $4.7 million, or 7.5%, to $58.3 million, compared to $63.0 million for the same period in 2012.

Commenting on the results, E. Nikolas Tavlarios, President, said: "We have continued to successfully execute on our growth initiatives, which has allowed us to make significant progress despite challenging macro headwinds. During the first quarter we achieved a sequential increase in our gross spread and continued to reduce our expenses, resulting in our ninth consecutive quarter of profitability. As expected, we saw a typical seasonal decline in volumes and utilization; however, our focus on leveraging our infrastructure allowed us to capture voyage and storage revenue opportunities and drive profitability."

Mr. Tavlarios continued: "We have entered 2013 with strong momentum, and believe we are executing the right strategy to sustain long-term growth. We continue to take a methodical approach to entering and exiting markets, diversifying our operations, and strengthening our integrated fuel logistics chain and we are confident that we are well-positioned to benefit when the market recovers from the current shipping cycle."

Liquidity and Capital Resources

Net cash provided by operating activities was $42.2 million for the three months ended March 31, 2013. Net income, as adjusted for non-cash items, was $13.6 million.

Net cash used in investing activities was $3.0 million, mainly due to the advances for other fixed assets under construction which were partly offset by the proceeds from the sale of two vessels and one of the company's subsidiaries.

Net cash used in financing activities was $54.1 million, primarily driven by the pay down of net borrowings.

As of March 31, 2013, the company had cash and cash equivalents of $61.7 million and working capital of $50.5 million. Non-cash working capital, or working capital excluding cash and debt, was $403.5 million.

At the end of March, Aegean had $355.4 million in available liquidity, which includes unrestricted cash and cash equivalents of $61.7 million and available undrawn amounts under the company's working capital facilities of $293.7 million, to finance working capital requirements.

The weighted average basic and diluted shares outstanding for the three months ended March 31, 2013 were 45,660,166. The weighted average basic and diluted shares outstanding were 45,438,383.

Spyros Gianniotis, Chief Financial Officer, remarked: "Our first quarter results demonstrate the strength of our operating model and our ability to build and sustain new revenue streams and profitability in a tough operating environment. During the quarter we further streamlined our infrastructure by selling two vessels and reducing our operating expenses, both of which we expect to drive higher utilization and cash flow over the long-term. We have also taken significant steps to strengthen our balance sheet, including establishing a global trade finance facility that will provide significant additional liquidity."


Screenshot from ICS webinar exploring a regulatory framework for nuclear-powered merchant ships. ICS webinar explores regulatory framework for nuclear-powered merchant ships  

Industry experts discuss the timeline and challenges for adopting nuclear propulsion in the commercial shipping sector.

Hiring concept with puzzle pieces and a magnifying glass. Oilmar DMCC seeks senior bunker trader for Dubai office  

Dubai-based energy trader recruiting for Middle East, Indian subcontinent and Africa trade flows.

Typewriter job application. Oilmar DMCC seeks bunker traders for Singapore office  

Dubai-based trader recruiting mid-level and senior professionals to expand Asia-Pacific marine fuels operations.

Section of the front cover of ClassNK's updated guidance on the EU ETS for shipping. ClassNK updates EU shipping emissions guidance for LNG-fuelled vessels  

Japanese classification society releases revised FAQs addressing methane slip measurement procedures.

CMA CGM Monte Cristo vessel. Bureau Veritas delivers first 15,000-teu methanol dual-fuel container ship for CMA CGM  

Classification society completes delivery of CMA CGM Monte Cristo built by DSIC Tianjin.

IBIA MFM bunkering training course graphic. IBIA announces new date for mass flow meter training course in Rotterdam  

Training scheduled for 12 May follows mandatory MFM implementation at Rotterdam and Antwerp-Bruges ports.

A Maersk vessel, pictured from above. Maersk and Hapag-Lloyd suspend Strait of Hormuz transits amid Middle East security crisis  

Container carriers reroute services around the Cape of Good Hope as military conflict escalates.

Map of Middle East. Operations continue as normal at most Middle East ports  

Most facilities operating normally, with exceptions in Bahrain, Oman and Saudi Arabia.

Photograph of the 93,000-cbm very large ammonia carrier (VLAC) Gaz Ronin. Naftomar takes delivery of 93,000-cbm dual-fuel ammonia carrier  

Gaz Ronin features a MAN dual-fuel engine with high-pressure selective catalytic reduction technology.

Aurora Botnia leaving harbor. AYK Energy completes world’s largest marine battery retrofit on Wasaline ferry  

Aurora Botnia receives 10.4 MWh battery system, bringing total capacity to 12.6 MWh.





 Recommended