Leading bunker supplier
Aegean Marine Petroleum Network Inc. has announced a rise in net income of $8.6 million in 2009 as sales volumes increased by 19.1 percent last year.
For the year ended December 31, 2009, the company recorded net income of $48.5 million, or $1.13 per share, compared to net income of $39.9 million, or $0.94 per share, for the year-earlier period.
Results were led by a 9.6% increase in the gross spread on marine petroleum products to $176.5 million compared to $161.0 million for the same period a year ago. The volume of marine fuel sold increased 19.1% to 6,192,755 metric tons compared to 5,200,256 metric tons in 2008.
Meanwhile, the gross spread per metric ton of marine fuel sold decreased by $2.6 to $28.1 per metric ton, compared to $30.7 per metric ton for the same period the previous year.
Total revenues for the year ended December 31, 2009 decreased by 10.2% to $2,495.9 million compared to $2,778.0 million in 2008. Sales of marine petroleum products decreased by 10.6% to $2,474.4 million compared to $2,768.1 million the previous year. Howeverm, net revenues were $198.0 million as compared to $170.9 million.
Operating income for the year ended December 31, 2009 was $59.2 million compared to $52.1 million for the same period in 2008.
Fourth Quarter Results
While the unadjusted reported net income was $13.7 million, or $0.32 per share, for the three months ended December 31, 2009, net income on an adjusted basis was $14.8 million, or $0.35 per share. The figure was $1.7 million higher than the net income of $13.1 million, or $0.31 per share, reported for the three months ended December 31, 2008.
Total revenues for the fourth quarter of 2009 increased by 53.7% to $851.8 million compared to $554.3 million in the year-earlier period. Sales of marine petroleum products increased by 53.2% to $843.4 million compared to $550.5 million during the corresponding period in 2008. Net revenue, which equals total revenue less cost of goods sold and cargo transportation expenses, increased 13.6% to $58.6 million in the fourth quarter of 2009 compared to $51.6 million during the last three months of 2008.
Results were primarily driven by a 5.2% increase in the gross spread on marine petroleum products to $50.2 million compared to $47.7 million for the same period in 2008. The volume of marine fuel sold increased by 11.4% to 1,748,308 metric tons compared to 1,568,770 metric tons in the year-earlier period, as sales volumes improved in the UAE and Singapore. Furthermore, results for the fourth quarter of 2009 included increased sales volumes from Aegean's new markets.
Meanwhile, the gross spread per metric ton of marine fuel sold decreased to $28.3 per metric ton, compared to $30.2 per metric ton in the year-earlier period.
Operating income for the fourth quarter of 2009 was $16.1 million, compared to $18.3 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), increased to $42.5 million compared to $33.3 million for the same period in 2008. This increase was said to be principally due to the expanded logistics infrastructure during the fourth quarter of 2009 compared 2008.
Commenting on the results,
E. Nikolas Tavlarios, President, said,"Our record performance for the fourth quarter and full year 2009 highlights our significant success in executing management's business plan during a global economic recession and further strengthens Aegean's industry leading brand. In maintaining our commitment to profitable growth, we increased sales volumes and net income by 19.1% and 21.6%, respectively, in 2009 compared to the year-earlier period while actively managing counterparty risk and expanding our future earnings potential. Specifically, we entered three new markets this past year, expanding our presence to 14 strategic locations worldwide. Building upon our new operations in Trinidad and Tobago, Tangiers, Morocco and Patras, Greece, we agreed to acquire Verbeke Bunkering N.V., a leading physical supplier of marine fuel in the vast Antwerp-Rotterdam-Amsterdam region, the world's second largest bunkering market. Including the Verbeke acquisition, which is scheduled to close in March of 2010, Aegean has more than tripled its global reach since the Company's IPO in December of 2006."
Mr. Tavlarios added, "Complementing the robust growth in our service network, we continued to expand our high-quality logistics infrastructure with the delivery of 11 double-hull bunkering vessels in 2009 and year-to-date, including seven newbuildings. As we continue to enhance our competitive advantage and meet the strong demand for modern tonnage, we intend to draw upon our considerable financial flexibility and take delivery of 14 additional double-hull bunkering tanker newbuilds for the remainder of 2010. By expanding our integrated marine fuel platform from procurement to delivery as we have consistently done in the past, we expect to further strengthen our leadership position as a full-service independent supplier of marine fuel to blue-chip customers and drive future sales volume growth."
