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Leading marine fuels and lubricants supplier Aegean Marine Petroleum Network Inc. has reported a 41.34 percent year-on-year decline in net income for the first quarter of 2009.

The company posted a net income of $4.4 million, or $0.10 per share, for the three months ended March 31st 2009 versus a net income of $7.5 million, or $0.18 per share, for the same period last year.

Total revenues for the first quarter dropped by 31.3 percent to $365.4 million compared to $532.0 million for the first three months in 2008, whilst sales of marine petroleum products decreased by 31.9 percent to $361.0 million compared to $530.4 million for the year-earlier period.

Net revenue, which equals total revenue less cost of goods sold and cargo transportation expenses, increased by 20.1 percent to $40.0 million compared to $33.3 million during the first three months of 2008.

Aegean said the results for the first quarter of 2009 were primarily driven by a 12.7 percent increase in the gross spread on marine petroleum products to $35.6 million compared to $31.6 million for the same period in 2008.

The volume of marine fuel sold increased by 23.6 percent to 1,310,037 metric tonnes compared to 1,060,134 metric tonnes in the year-earlier period, as sales volumes improved in Greece and Singapore.

Furthermore, results for the first quarter included sales volumes from Aegean's new markets in the U.K. (April 2008) and North America (July 2008).

The gross spread per metric ton of marine fuel sold decreased to $26.8 per metric tonne, compared to $29.7 per metric tonne in the year-earlier period, the company said.

Operating income for the first quarter dropped by $0.2 million to $8.5 million for the same period in 2008. 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), rose by $6.9 million to $31.7 million. This increase was principally due to operating an expanded logistics infrastructure during the first quarter of 2009 compared to the first three months of 2008, Aegean said.

Commenting on the company's financial results, Spyros Gianniotis, Chief Financial Officer, said, "Our operating results for the first quarter of 2009 were led by improved sales volumes in Singapore and Greece. While we believe markets have begun to stabilize, we will maintain a conservative approach in the extension of credit during this period of economic uncertainty. Based on management's prudent decision to tighten credit controls, we have not experienced any customer delinquencies."

Aegean's President, E. Nikolas Tavlarios said "During the first quarter, sales volumes were affected by our previously announced focus on actively managing counterparty risk. Sales volumes were also affected by the redeployment of bunkering tankers and inclement weather conditions in certain ports. Management's precautionary and proactive measures have served to protect Aegean during the most challenging economic environment since the Great Depression and enabled the company to successfully avoid any customer defaults. Aegean's strong financial position, brand name, newbuild program, and proven business model for the physical supply of marine fuel remain as the fundamentals for our future growth. "

Mr. Tavlarios added, "During the quarter, we continued to take advantage of our strong capital position and expanded our global marine fuel platform. Specifically, we strengthened our presence in the Mediterranean by commencing operations in Patras, the second largest port in Greece. We also remain on track to launch operations in Tangiers, Morocco and Trinidad and Tobago during the current second quarter, increasing Aegean's reach to 14 markets worldwide.

"Complementing this notable growth, we took delivery of two double-hull bunkering tanker newbuildings and acquired three additional double-hull bunkering tankers during the first quarter and year-to-date. By entering new strategic markets and expanding our modern bunkering delivery fleet as we have consistently done in the past, we expect to increase our long-term earnings potential and strengthen Aegean's industry leadership," said Tavlarios.