Thu 10 Nov 2011, 07:18 GMT

Aegean Q3 net income up 15 percent


Sales of marine petroleum products rise by 37 percent despite a decrease in volume sold.



Aegean Marine Petroleum Network Inc. has posted a $0.7 million, or 15.2 percent, rise in net income during the third quarter of 2011 in comparison with the corresponding period last year.

The company recorded a net income of $5.3 million, or $0.11 per share, compared to a net income of $4.6 million, or $0.10 per share, for the three months ended September 30th 2010.

On a GAAP basis, and including an $8.6 million non-cash loss from sale of a 1983-built floating storage tanker, Aegean reported a net loss of $3.3 million or $0.07 per share.

Total revenues for the period increased by 37.4 percent to $1,838.3 million compared to $1,337.5 million in 2010. Sales of marine petroleum products increased by 36.9 percent to $1,824.9 million compared to $1,333.4 million for the year-earlier period.

Net revenue, which equals total revenue less cost of goods sold and cargo transportation expenses, increased by 27.6 percent to $77.2 compared to $60.5 million during the third quarter of 2010.

The volume of marine fuel sold decreased by 5.4 percent to 2,715,439 metric tonnes compared to 2,871,711 metric tonnes in the prior-year period.

Adjusted operating income for the third quarter of 2011 increased by 40.8 percent to $13.8 million versus $9.8 million in 2010. Operating income, including a one-time loss on the sale of a vessel, was $5.2 million.

Operating expenses, excluding the cost of fuel and cargo transportation costs, increased by $21.3 million, or 42.0 percent, to $72.0 million, compared to $50.7 million for the same period in 2010. This increase was said to be principally due to an expanded logistics infrastructure and the loss on the sale of a vessel during the third quarter of 2011 compared to 2010.

Commenting on the results, E. Nikolas Tavlarios, President, commented, "During the third quarter, we continued to achieve notable progress implementing our strategy to enhance Aegean's operational and financial performance. Consistent with our goal to strengthen Aegean's global presence, we commenced physical supply and onshore storage operations in Panama, expanding our global presence to 19 markets covering nearly 60 ports. We also maintained our focus on improving Aegean's cost structure by divesting additional non-core assets as we remain committed to increasing operating efficiencies.

"While overall market conditions remain challenging, we believe our growing integrated marine fuel logistics chain combined with a strong financial foundation positions Aegean well to continue to meet the positive worldwide demand for its comprehensive services and drive future earnings growth."

Spyros Gianniotis, Chief Financial Officer, stated, "Aegean's substantial access to capital serves as a core differentiator, enabling the Company to meet the significant working capital requirements of the marine fuel supply industry and procure large quantities of supply at a volume-based discount. By recently renewing our credit facility with a global financial institution, we have increased the aggregate amount of Aegean's working capital credit facilities to more than $940 million.

"Our success in securing new bank debt under favorable terms in a challenging market environment demonstrates the continued confidence our lending group has in Aegean's future prospects as we further expand our global full-service platform."

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