Fri 20 Nov 2015 09:39

Aegean posts Q3 results


Net income, gross profit and sales volumes are up on last year, but revenue is 40.2% lower 'due to the drop in oil prices'.



Aegean Marine Petroleum Network Inc. has announced that it achieved a net income attributable to shareholders of $6.797 million, or $0.14 basic and diluted earnings per share, compared with a net loss of $4.345 million last year.

Gross profit, which equals total revenue less directly attributable cost of revenue, increased by 2.2 percent to $84.4 million compared with $82.6 million in the prior-year period.

The company reported a total revenue of $1.1 billion for the third quarter of 2015, a decrease of 40.2 percent compared to the same period in 2014. This was said to be "due to the drop in oil prices". Voyage and other revenues increased to $21.2 million, or 14.8 percent, in comparison with last year.

Aegean reported record marine fuel sales volumes of 3,386,511 metric tonnes during the third quarter of 2015 - an increase of 14.5 percent compared to last year.

During the first nine months of this year, the bunker firm sold 9,452,911 tonnes; the figure is 1,128,586 tonnes, or 11.9 percent higher than during the same period in 2014.

The gross spread per metric tonne on an aggregate basis was $21.6 per metric tonne. The gross spread per metric tonne on Aegean's physical marine fuel supply business was approximately $23.0 per metric tonne.

Adjusted EBITDA per metric ton sold was $9.30. In the prior year period, the figure was $7.70 per metric tonne.

Operating expenses were $66.7 million - a decrease of $11.0 million, or 14.2 percent, from last year. When adjusted for the impairment charge related to the closure of Aegean's Portland business in the current quarter and a loss on sale of assets in the prior-year period, the company reported a decrease in operating expenses of $2.5 million, or 3.9 percent.

Operating income between July and September 2015 was $17.7 million, representing an increase of 261.2 percent compared to last year.

Operating income adjusted for the impairment charge related to the closure of Aegean's Portland, U.K. business in the current quarter and a loss on sale of assets in the prior year period was up $4.3 million, or 23.0 percent.

Liquidity and capital resources

Net cash provided by operating activities was $127.5 million for the third quarter of 2015. Net income, as adjusted for non-cash items, was $19.8 million for the period.

Net cash used in investing activities was $0.5million. This was said to be primarily due to the purchase of fixed assets. Net cash used in financing activities was $54.2 million, which was derived mainly from the repayment of short-term debt.

As of September 30, 2015, Aegean had cash and cash equivalents of $115.4 million and working capital of $281.2 million. Non-cash working capital, or working capital excluding cash and debt, was $457.7 million.

As of September 30, 2015, the company had $910.4 million undrawn amounts under its working capital facilities and $115.4 million of unrestricted cash and cash equivalents to finance working capital requirements.

The weighted average basic and diluted shares outstanding for the three months ended September 30, 2015 was 47,434,953. The weighted average basic and diluted shares outstanding were 47,434,953 respectively.

Commenting on the results, E. Nikolas Tavlarios, Aegean's President, commented: "Aegean Marine's market leadership position and strong financial performance provide a solid foundation for continued growth and diversification. We are excited about the new growth opportunities and revenue streams we are pursuing, and we continue to shift our mix to higher return products such as lower sulphur fuels and blended finished products. Our Fujairah Oil Terminal continues to perform well, operating at excellent efficiency levels and is currently at about 86 percent capacity. During the quarter we expanded our customer offerings to include cargo sales, a new area of investment for Aegean Marine that is expected to provide us with an additional low cost revenue stream."

Spyros Gianniotis, Aegean's Chief Financial Officer, stated: "We delivered strong financial results in the quarter as a result of our differentiated and diverse strategy, financial flexibility and solid balance sheet that can support profitability over the long-term. We are introducing a new metric this quarter, EBITDA per ton, which we believe more accurately reflects Aegean's performance and the impact our diversified revenue stream is having on the bottom line. Looking ahead, we remain focused on advancing our position in the fuel supply industry and enhancing our global footprint. We are confident in our ability to create value for shareholders, continue successfully executing our strategy and drive profitability."


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