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."


MCE Marine Surveyors logo. MCE Marine Surveyors seeks bunker surveyor in Rotterdam amid growing demand  

Liquid bulk surveyor certificate listed as a preference, as is prior experience in a bunker surveyor role.

Athinagoras vessel. LNG dual-fuel tanker delivered to Capital Ship Management  

Vessel one of two handed over to Greek operators on the same day.

Auramarine quality specialist hiring announcement. Auramarine seeks quality specialist to unify European and Asian management systems  

Finnish fuel supply system maker is recruiting a quality specialist to harmonise its global operations.

Nave Orbit vessel. Navios Maritime Partners takes delivery of LNG- and methanol-ready Aframax tanker  

117,012-dwt Nave Orbit features alternative-fuel readiness and energy-efficiency technology.

PetroChina Petroineos Trading logo. PetroChina International seeks bunker sales manager to drive European growth  

Chinese state-owned energy trader targets ARA expansion with new commercial hire.

CF Anja vessel. Damen delivers HVO-ready CF 3850 to Lithuania’s Juru Agentura Forsa  

CF Anja marks the first newbuild vessel in Forsa’s dry cargo fleet.

Marine Transshipment Terminal. Orlen opens marine transshipment terminal in Gdansk  

Polish refiner's new quay facility can handle up to two million tonnes of products annually.

Uni-Fuels Logo. Uni-Fuels appoints general manager for new Houston operation  

Experienced professional Robert Love aiming to expand the company’s presence in the United States.

Two people shaking hands with 'Join our team' text overlay. Sing Fuels hiring junior supply trader for Singapore operations  

Role aimed at candidates with one to two years of experience in marine fuels or the wider maritime industry.

Simaisma vessel. Exmar takes delivery of LNG carrier to serve the bunkering market  

Vessel to be convered into a floating transshipment unit for specialised LNG bunkering vessels to load fuel.