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."


Photograph of ship with overlaid encircled text of EU regulations. DNV to host webinar on FuelEU Maritime compliance strategies  

Classification society offers insights as first reporting period closes and verification phase begins.

Photograph of ship with overlaid text showing narrowing MGO-biodiesel price spread. Biodiesel–MGO price spread narrows to $400–500/mt in Northwest Europe  

Bunker One says tighter spread creates opportunities for shipping companies pursuing decarbonisation targets.

Graphic for webinar 'Exmar: preparing to sail using ammonia as a marine fuel'. Exmar to discuss ammonia-fuelled vessel operations in webinar  

Shipowner will explore safety measures and partnerships for new dual-fuel ammonia carriers.

Aerial view of a container vessel. Skuld reports engine damage from CNSL biofuel blends amid rising alternative fuel adoption  

Marine insurer details operational challenges with biofuels, including FAME, CNSL and UCOME across member vessels.

Graphic for Exmar webinar titled titled 'Exmar: preparing to sail using ammonia as a marine fuel'. Event date: 15 April 2026. GRM and Bunker Holding to host webinar on Middle East war's impact on energy markets  

Webinar on 9 March will examine effects on crude oil, bunker and gas markets.

GENA Clean ammonia project pipeline chart, February 2026. Clean ammonia project pipeline reaches 145 MMT by 2034, but delivery concerns mount  

GENA Solutions reports 325 tracked projects, though over 70 have been frozen in 20 months.

Peninsula logo. Peninsula highlights supply chain strength amid Strait of Hormuz closure  

Marine fuel seller emphasises reliability as geopolitical disruption reshapes global bunker markets.

European Union member state flags. World Shipping Council backs EU maritime strategies but calls for faster trade simplification  

Industry body supports port security and decarbonisation measures while urging action on customs barriers.

Luke McEwen, Technical Director at Anemoi Marine Technologies. Anemoi and Lloyd’s Register call for unified approach to wind propulsion performance verification  

Anemoi Marine Technologies and Lloyd’s Register publish paper advocating alignment of verification methodologies.

Smyril Line's methanol-ready ro-ro following launch at its Longkou construction base in China in February 2026. Smyril Line's methanol-ready ro-ro launched in China  

First of two 3,300 lane-metre vessels floated out for Faroese operator.





 Recommended