Tue 20 Aug 2013, 06:48 GMT

Aegean net income up $2.8 million in Q2


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



Aegean Marine Petroleum Network Inc. has announced that it achieved a rise in net income of $2.8 million, or 103.7%, during the second quarter of 2013 in comparison with the previous year.

Net income attributable to Aegean shareholders for the three months ended June 30, 2013 was $5.5 million, or $0.12 basic and diluted earnings per share. Last year, the company recorded a net income of $2.7 million, or $0.06 basic and diluted earnings per share, during the same three-month period.

Net income attributable to Aegean shareholders excluding a loss from the sale of non-core assets was $6.1 million, or $0.13 basic and diluted earnings per share, compared to $2.7 million, or $0.06 basic and diluted earnings per share, in the second quarter of 2012.

Total revenues for the three months ended June 30, 2013, decreased by 10.4% to $1,691.8 million compared to $1,888.1 million during the same period in 2012.

Sales of marine petroleum products declined by 10.3% to $1,680.9 million compared to $1,874.6 million in 2012. Gross profit, which equals total revenue less directly attributable cost of revenue, fell by 13.1% to $69.5 million in the second quarter of 2013 compared to $80.0 million last year.

The volume of marine fuel sold by the company decreased by 0.8% to 2,693,151 metric tonnes compared to 2,714,176 metric tonnes in the corresponding period of 2012.

Operating income excluding a non-cash loss from the sale of an older, non-core vessel for the second quarter of 2013 amounted to $13.2 million compared to $19.5 million in 2012. Operating expenses excluding the non-cash loss from the sale of vessels decreased by $4.2 million, or 6.9%, to $56.3 million, compared to $60.5 million during the second quarter of last year.

Commenting on the results, E. Nikolas Tavlarios, President, said: "We extended our track record of operational excellence and strong financial performance in the second quarter, which represented Aegean's tenth consecutive quarter of profitability. During the quarter we entered new markets to strengthen our revenue base, strategically positioning Aegean for continued success as the market emerges from the current shipping cycle.

"We are taking the right steps to sustain growth and position Aegean for opportunities as they emerge. Our expansion into the Port of Algeciras will increase our presence in the rapidly growing Western Mediterranean market, further diversify our revenue base and improve our fleet utilization. During the quarter we also announced a cooperation agreement with SK Lubricants, which will expand our operations in Asia and increase volumes in our marine lubricants business. As we move into the second half of the fiscal year, we will continue to execute our strategy of strengthening our industry leadership and enhancing shareholder value."

Spyros Gianniotis, Chief Financial Officer, stated, "Our second quarter results demonstrate Aegean's ability to operate safely and profitably while establishing additional revenue streams and adapting to fluctuating industry conditions. As part of our commitment to strengthen our financial flexibility, we have launched the syndication of our $800 million multicurrency credit facilities during the quarter, a significant milestone for our company. Combined with supplier credit, our new multicurrency credit facilities will allow Aegean to continue to manage volatile marine fuel prices and to further improve its supply and trading performance. We appreciate the support of our lenders and their confidence in our ability to continue delivering profitable revenue growth."

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