Thu 12 Nov 2009, 06:55 GMT

Aegean posts $4.6 million rise in net income


Third quarter results are driven by 22.1 percent increase in sales volumes.



Leading bunker supply firm Aegean Marine Petroleum Network Inc. has posted a $4.6 million rise in net income for the three months ended September 30, 2009.

The company recorded a net income of $14.1 million, or $0.33 per share, for the last quarter compared with a net income of $9.5 million, or $0.22 per share, for the three months ended September 30, 2008.

Total revenues for the three months ended September 30, 2009, decreased by 22.6% to $736.1 million compared to $950.6 million for the same period in 2008.

Meanwhile, sales of marine petroleum products decreased by 22.9% to $731.8 million compared to $948.6 million for the year-earlier period. Net revenue, which equals total revenue less cost of goods sold and cargo transportation expenses, increased 12.5% to $52.2 million compared to $46.4 million in the year-earlier period.

Aegean said the results for the third quarter of 2009 were primarily driven by a 7.9% increase in the gross spread on marine petroleum products to $47.9 million compared to $44.4 million for the same period in 2008. The volume of marine fuel sold increased by 22.1% to 1,635,473 metric tons compared to 1,338,914 metric tons in the year-earlier period, as sales volumes improved in Greece, Gibraltar, the U.A.E., and Singapore.

Furthermore, results for the third quarter of 2009 included increased sales volumes from Aegean's newer markets. The gross spread per metric ton of marine fuel sold decreased to $28.9 per metric ton, compared to $32.8 per metric ton in the year-earlier period.

Operating income for the third quarter of 2009 was $17.2 million, compared to $15.1 million for the same period in 2008. Operating expenses, excluding the cost of fuel and cargo transportation costs, increased to $35.0 million compared to $31.3 million for the same period in 2008. This increase was principally due to the expanded logistics infrastructure during the third quarter of 2009 compared to the third quarter of 2008.

Commenting on the results, E. Nikolas Tavlarios, President, said, "During the third quarter, we continued to take advantage of our strong capital position and strengthen our leading industry brand, enabling Aegean to once again post solid results for shareholders. Highlighting our success, we increased sales volumes by 22.1% for the three months ended September 30, 2009 compared to the year-earlier period.

"While actively managing counterparty risk during a challenging economic environment, we further expanded our industry leadership in the quarter. Specifically, we commenced operations in Tangiers, Morocco, the third new market launched by Aegean in 2009 and ninth since going public in December 2006. In addition to increasing our global scale, we expanded our high-quality logistics infrastructure with the delivery of nine double-hull bunkering vessels to date in 2009, including two newbuildings in the third quarter. Consistent with our goal to capitalize on the strong demand for modern tonnage, we plan to take delivery of 17 remaining newbuildings by the end of next year. With a growing infrastructure for the worldwide delivery of marine fuel, we expect to continue to increase Aegean's global market share and drive future sales volumes."

For the nine months ended September 30, 2009, the company recorded net income of $34.8 million, or $0.82 per share, compared to net income of $26.8 million, or $0.63 basic per share,for the year-earlier period.

Total revenues for the nine months ended September 30, 2009 decreased by 26.1% to $1,644.1 million compared to $2,223.6 million for the same period a year ago. Sales of marine petroleum products decreased by 26.5% to $1,631.0 million compared to $2,217.6 million for the same period in 2008. Net revenues were $139.4 million as compared to $121.4 million in the year-earlier period.

Results for the first nine months of this year were led by an 9.5% increase in the gross spread on marine petroleum products to $126.3 million compared to $115.3 million for the same period a year ago. The volume of marine fuel sold increased 22.4% to 4,444,447 metric tons compared to 3,631,486 metric tons in the year-earlier period. The gross spread per metric ton of marine fuel sold decreased by $3.5 to $28.0 per metric ton, compared to $31.5 per metric ton for the same period in 2008.

Operating income for the nine months ended September 30, 2009 was $43.1 million compared to $36.0 million last year.

Spyros Gianniotis, Chief Financial Officer, said, "Aegean's financial results for the third quarter reflect sales volume growth in core markets located in Greece, Gibraltar, the UAE and Singapore as well as contributions from new markets. Our notable performance demonstrates management's ability to increase sales volumes while maintaining a prudent approach in extending credit to customers.

"During the quarter, we also secured a new $50 million credit facility under attractive terms, once again enhancing our leading competitive position. Our significant financial liquidity, including credit facilities totalling $320 million and $50.3 million in cash, bodes well for Aegean to further expand its long-term earnings potential as we continue to execute our growth strategy."


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