Aegean Marine Petroleum Network Inc. has announced that net income for the three months ended September 30, 2013 fell by $0.7 million, or 8.8 percent, to $7.3 million, or $0.16 basic and diluted earnings per share, down from $8.0 million, or $0.17 basic and diluted earnings per share during the corresponding period in 2012.
Total revenues during the three-month period decreased by 12.2% to $1,602.0 million compared with $1.825.3 million in 2012.
Sales of marine petroleum products decreased by 12.2% to $1,590.2 million compared with $1,810.5 million during the third quarter of 2012.
Gross profit, which equals total revenue less directly attributable cost of revenue, decreased by 4.8% to $70.8 million in the third quarter of 2013 compared with the $74.4 million recorded last year.
The volume of marine fuel sold by the company decreased by 8.1% to 2,496,457 metric tonnes compared with 2,716,388 metric tonnes in the same period in 2012.
Operating income for the third quarter of 2013 amounted to $12.4 million compared to $15.1 million in 2012. Operating expenses decreased by $0.9 million, or 1.5%, to $58.4 million for the three months ended September 30, 2013, compared with $59.3 million in the third quarter of 2012.
Commenting on the results,
E. Nikolas Tavlarios, President, said: "Our third quarter results and strong financial position demonstrate our continued success in extending our track record of profitability while navigating the challenging dynamics of our market. While the bunkering business remains dynamic, we have taken advantage of the current macroeconomic environment to streamline our expenses and increase our earnings power."
Tavlarios continued: "Our recent definitive agreement to acquire the Hess Corporation's U.S. East Coast bunkering business is a strong example of our execution. This transaction, which is fully aligned with our strategy, increases both our exposure to U.S. clients and new profitable growth opportunities. With minimal start-up costs this transaction will allow Aegean Marine to strategically expand our global presence. We continue to successfully execute a strategy to generate and sustain strong results and are excited about our opportunities to build significant shareholder value."
Liquidity and Capital Resources
Net cash provided by operating activities was $26.1 million for the three months ended September 30, 2013. Net income, as adjusted for non-cash items was $14.7 million.
Net cash used in investing activities was $7.2 million, largely due to the advances for other fixed assets under construction.
Net cash used in financing activities was $9.8 million during the three-month period, primarily driven by the net change in short term borrowings.
As of September 30, 2013, the company had cash and cash equivalents of $72.4 million and working capital of $187.2 million. Non-cash working capital, or working capital excluding cash and debt, was $468.6 million.
As of September 30, 2013, the company had $583.7 million in available liquidity, which includes unrestricted cash and cash equivalents of $72.4 million and available undrawn amounts under the Company's working capital facilities of $511.3 million, to finance working capital requirements.
Spyros Gianniotis, Chief Financial Officer, remarked: "We continue to see the benefits of our efforts to streamline our expense structure, leverage our model and strengthen our financial flexibility. During the quarter we successfully signed multicurrency revolving credit facilities valued at approximately $1 billion, which was a significant milestone for Aegean Marine. These facilities provide important liquidity that will support our ability to continue to expand Aegean Marine's global market share and pursue new profitable revenue growth opportunities. Today, Aegean Marine's capital structure is the strongest it has ever been and we are confident that our financial and operating models will allow the Company to deliver significant returns over the long-term."
