Thu 26 Feb 2009, 07:42 GMT

Aegean announces $12.2 million rise in 2008 profit


Year-end results driven by 79.5 percent increase in the gross spread on marine petroleum products.



Leading bunker supplier Aegean Marine Petroleum Network Inc. has announced a profit increase of $6.8 million for the fourth quarter of 2008 and a net income rise of $12.2 million for the full year in its latest financial results.

The company recorded net income of $13.1 million, or $0.31 per share, for the three months ended December 31, 2008, compared to $6.3 million, or $0.15 per share during the same period in 2007.

On an adjusted basis, net income was $14.1 million or $0.33 per share in the fourth quarter.

Total revenues for the three months ended December 31, 2008, increased by 10.7 percent to $554.3 million compared to $500.6 million for the same period in 2007. Sales of marine petroleum products increased by 10.7 percent to $550.5 million compared to $497.3 million for the year-earlier period. Net revenues, which equal total revenues less cost of goods sold and cargo transportation costs, increased 58.3 percent to $51.6 million in the fourth quarter of 2008 compared to $32.6 million in the year-earlier period.

The company said results for the fourth quarter of 2008 were driven by a 62.8 percent increase in the gross spread on marine petroleum products to $47.7 million compared to $29.3 million for the same period in 2007.

The volume of marine fuel sold increased during this period by 52.8 percent to 1,568,770 metric tons compared to 1,026,395 metric tons in the year-earlier period, as sales volumes improved significantly in Greece and Singapore. Furthermore, results for the fourth quarter of 2008 included sales volumes from Aegean's new markets: West Africa (January 2008), U.K. (April 2008), and North America (July 2008).

The gross spread per metric ton of marine fuel sold increased to $30.2 per metric ton, compared to $28.4 per metric ton in the year-earlier period.

Commenting on the results, E. Nikolas Tavlarios, President said "Aegean's record financial performance for the fourth quarter and full year 2008 highlights our success in executing management's well-capitalized growth strategy and meeting the strong demand for our integrated marine fuel services.

"As we continued to increase our global market share during a challenging economic environment, we reported an increase in both net income and sales volumes of 44.0 percent and 51.3 percent, respectively, while strengthening Aegean's position for future growth. Specifically, we once again expanded our global platform by entering new markets in Vancouver, Montreal and Mexico during 2008. We also grew our logistics infrastructure with the delivery of six double-hull bunkering tanker newbuildings during the year. In further improving our ability to capitalize on the increased demand for modern tonnage created by the regulatory phase-out of single-hull vessels, we have taken delivery of two double-hull bunkering tankers to date in 2009."

Mr. Tavlarios added, "We expect to commence operations in Tangiers, Morocco and Trinidad and Tobago in the second quarter of 2009 and expect to take delivery of 20 additional double-hull bunkering tanker newbuilds by the end of 2010, significantly expanding Aegean's earnings potential. In maintaining our focus on profitable growth, we intend to take advantage of our strong financial position, a core differentiator for Aegean, to further enhance our leading brand and drive future results."

For the year ended December 31, 2008, the company recorded net income of $39.9 million, or $0.94 per share, compared to net income of $27.7 million, or $0.65 basic per share, for the prior year.

Total revenues increased by 105.3 percent to $2,778.0 million compared to $1,352.9 million for the same period in 2007. Sales of marine petroleum products increased by 105.7 percent to $2,768.1 million compared to $1,345.8 million for the same period in 2007. Net revenues for the full year 2008 increased 76.7 percent to $170.9 million compared to $96.7 million in 2007.

Results for the year ended December 31, 2008 were led by a 79.5 percent increase in the gross spread on marine petroleum products to $161.0 million compared to $89.7 million for the same period a year ago.

The volume of marine fuel sold increased 51.3 percent to 5,200,256 metric tons compared to 3,437,269 metric tons in the year-earlier period. The gross spread per metric ton of marine fuel sold increased to $30.7 per metric ton from $25.9 per metric ton in 2007.

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