Leading bunker supplier
Aegean Marine Petroleum Network Inc. has announced its financial and operating results for the third quarter ended September 30, 2008.
The company recorded a net income of $9.5 million, or $0.22 basic and diluted earnings per share, for the three months ended September 30, 2008. The figure is $1.9 million higher than the net income achieved during the same three-month period in 2007 when Aegean reported a net income of $7.8 million, or $0.19 basic and $0.18 diluted earnings per share.
Total revenues for the three months ended September 30, 2008, increased by 167.1 percent to $950.6 million compared to $355.9 million for the same period in 2007, whilst sales of marine petroleum products increased by 167.4 percent to $948.6 million compared to $354.7 million for the year-earlier period.
Aegean said the results for the third quarter of 2008 were driven by a 99.1 percent increase in the gross spread on marine petroleum products to $44.4 million compared to $22.3 million for the same period in 2007.
For the three months ended September 30, 2008, the volume of marine fuel sold increased by 49.2 percent to 1,338,914 metric tons compared to 897,147 metric tons in the year-earlier period, as sales volumes improved significantly in Greece and Singapore, Aegean said. Furthermore, results for the third quarter of 2008 included sales volumes from Aegean's new markets, including Northern Europe (October 2007), West Africa (January 2008), U.K. (April 2008), and North America (July 28).
The gross spread per metric ton of marine fuel sold also increased during this three-month period to $32.8 per metric ton, compared to $24.8 per metric ton during the three months ended September 30, 2007.
Meanwhile, operating income for the third quarter of 2008 was $6.2 million higher than the same period last year, at $15.1 million. Operating expenses, excluding the cost of fuel and cargo transportation costs (both of which are included in the calculation of gross spread on marine petroleum products), increased by $16.7 million to $31.3 million, up from $14.6 million for the same period in 2007.
This increase was said to be principally due to operating an expanded logistics infrastructure platform, comprised of a larger bunkering fleet and more storage facilities, during the third quarter of 2008 compared to the third quarter of 2007.
Commenting on the results,
E. Nikolas Tavlarios, President, commented, "During the third quarter and year-to-date, Aegean continued growing sales volumes at a robust pace. For the three and nine months ended September 30, 2008, sales volumes increased 49.2 percent and 50.6 percent, respectively. The Company remains committed to further growing its global presence.
"During this past quarter, the company expanded into Canada and Mexico, through the acquisition of ICS Petroleum, and recently announced plans to enter the Southern Caribbean market in early 2009. We also increased our bunkering fleet over the quarter, taking delivery of our fourth double-hull bunkering tanker newbuilding, acquiring three second-hand double-hull vessels, and taking-on two barges. The Company expects to take delivery of 23 remaining newbuildings over the next two years.
"In maintaining our commitment to growth, the management remains poised to further strengthen Aegean's leadership position and expand the Company's earnings power over the long term."
Spyros Gianniotis, Chief Financial Officer, commented "Aegean posted solid financial results for the quarter. The successful integration of our acquisition of Vancouver-based ICS Petroleum combined with contributions from our other new markets led to considerable growth in sales volumes during the third quarter. We also benefited from significant improvements in Greece and Singapore. Our strong financial position, including a working capital surplus and attractive credit facilities, bodes well for management to further enhance sales volumes as we continue to execute our long-term growth strategy for the benefit of the Company and our shareholders."
