AEGEAN MARINE PETROLEUM NETWORK INC. NEW YORK, Aug. 17, 2015 /PRNewswire/ -- Aegean Marine Petroleum Network Inc. (NYSE: ANW) ("Aegean" or the "Company") today announced financial and operating results for the second quarter ended June 30, 2015.
Second Quarter Highlights
-- Recorded sales volumes of 3,150,950 metric tons.
-- Recorded gross profit of $78.5 million.
-- Recorded operating income of $14.8 million.
-- Recorded net income attributable to Aegean shareholders of $7.1 million
or $0.15 basic and diluted earnings per share.
-- Recorded EBITDA of $24.1 million.
E. Nikolas Tavlarios, President of Aegean Marine Petroleum Network, commented, "Aegean Marine has built a strong, global platform that has delivered solid returns in a variety of market conditions. While we faced headwinds during the quarter, we are entering the second half of 2015 with several growth drivers in place and we expect to further improve our financial performance. Our Fujairah facility is operating at strong utilization levels, and our expanded global operations position the Company for continued growth, success and value creation."
Mr. Tavlarios continued, "In particular, we are pleased that we have a unique and dynamic business model and strong balance sheet to support strategic expansion opportunities. As the industry improves, Aegean Marine is poised to benefit from our diversification and recent expansion into new markets. We remain focused on advancing our position as a leading fuel supplier, enhancing our network by opportunistically expanding our footprint, and ensuring that we meet and exceed the needs of our customers around the world."
The Company achieved net income attributable to Aegean shareholders for the three months ended June 30, 2015 of $7.1 million, or $0.15 basic and diluted earnings per share. For the three months ended June 30, 2014, the Company recorded net income attributable to Aegean shareholders of $9.3 million, or $0.20 basic and diluted earnings per share.
Total revenues for the three months ended June 30, 2015, decreased by 29.8% to $1,207.7 million compared with $1,720.2 million reported for the same period in 2014 due to the drop in the price of oil. For the three months ended June 30, 2015, sales of marine petroleum products decreased by 30.2% to $1,189.5 million compared with $1,705.2 million for the same period in 2014. Gross profit, which equals total revenue less directly attributable cost of revenue decreased by 7.1% to $78.5 million in the second quarter of 2015 compared with $84.5 million in the same period in 2014.
For the three months ended June 30, 2015, the volume of marine fuel sold by the Company increased by 18.5% to 3,150,950 metric tons compared with 2,659,620 metric tons in the same period in 2014.
Operating income for the second quarter of 2015 amounted to $14.8 million compared to $19.3 million for the same period in 2014. Operating expenses decreased by $1.5million, or 2.3%, to $63.7 million, the three months ended June 30, 2015, compared with $65.2 million for the same period in 2014.
Liquidity and Capital Resources
Net cash used in operating activities was $59.3 million for the three months ended June 30, 2015. Net income, as adjusted for non-cash items (as defined in Note 9) was $29.0 million for the period.
Net cash used in investing activities was $4.8 million for the three months ended June 30, 2015, mainly due to the construction of fixed assets.
Net cash used in financing activities was $11.8 million for the three months ended June 30, 2015, deriving mainly from repayment of long-term debt.
As of June 30, 2015, the Company had cash and cash equivalents of $42.2 million and working capital of $267.7 million. Non-cash working capital, or working capital excluding cash and debt, was $558.1 million.
As of June 30, 2015, the Company had $891.8 million in available liquidity, which includes unrestricted cash and cash equivalents of $42.2 million and available undrawn amounts under the Company's working capital facilities of $849.6 million, to finance working capital requirements.
The weighted average basic and diluted shares outstanding for the three months ended June 30, 2015 were 47,366,134. The weighted average basic and diluted shares outstanding for the three months ended June 30, 2014 were 46,289,429 respectively.
Spyros Gianniotis, Aegean's Chief Financial Officer, stated, "We delivered another quarter of profitability despite market headwinds impacting the business. We are pleased with the recent extension of our global and U.S. credit facilities, with improvements in pricing. Maintaining financial flexibility is the cornerstone of our success. With more than $1.8 billion in working capital credit facilities, we have a strong excellent balance sheet that can support continued profitability over the long-term. Given our financial strengthen, we have been able to move quickly to realize accretive growth opportunities and profitably grow the business, and remain focused on achieving this objective. Looking ahead, we are confident in our ability to continue successfully executing our strategy and drive profitability while returning capital to shareholders."
Summary Consolidated Financial and Other Data (Unaudited)
For the Three Months Ended June
30, For the Six Months Ended
June 30,
2014 2015 2014 2015
---- ---- ---- ----
(in thousands of U.S. dollars, unless otherwise stated)
Income Statement Data:
Revenues - third parties $1,711,953 $1,203,100 $3,402,137 $2,214,056
Revenues - related companies 8,261 4,607 12,441 8,754
----- ----- ------ -----
Total revenues 1,720,214 1,207,707 3,414,578 2,222,810
Cost of revenues - third parties 1,534,520 1,078,112 3,059,244 1,970,384
Cost of revenues- related companies 101,229 51,114 187,958 93,323
------- ------ ------- ------
Total cost of revenues 1,635,749 1,129,226 3,247,202 2,063,707
--------- --------- --------- ---------
Gross profit 84,465 78,481 167,376 159,103
------ ------ ------- -------
Operating expenses:
Selling and distribution 55,798 52,744 110,766 102,561
General and administrative 8,338 10,602 16,463 20,908
Amortization of intangible assets 1,033 375 2,055 749
Loss / (gain) on sale of vessels, net - - (493) 130
Vessel impairment charge - - 4,062 -
--- --- ----- ---
Operating income 19,296 14,760 34,523 34,755
Net financing cost (8,530) (8,813) (16,990) (18,139)
Gain on sale of subsidiary, net - - - -
Foreign exchange (losses) / gain, net (152) 658 97 692
Income taxes (expense) / Benefit (1,269) 543 (3,165) 2,064
------ --- ------ -----
Net income 9,345 7,148 14,465 19,372
----- ----- ------ ------
Less income attributable to non-controlling interest 22 - 46 -
--- --- --- ---
Net income attributable to AMPNI shareholders $9,323 $7,148 $14,419 $19,372
====== ====== ======= =======
Basic earnings per share (U.S. dollars) $0.20 $0.15 $0.30 $0.40
Diluted earnings per share (U.S. dollars) $0.20 $0.15 $0.30 $0.40
EBITDA(1) $26,740 $24,052 $50,196 $51,859
Other Financial Data:
Gross spread on marine petroleum products(2) $78,066 $71,773 $151,334 $143,383
Gross spread on lubricants(2) 585 949 1,487 2,188
Gross spread on marine fuel(2) 77,481 70,824 149,847 141,195
Gross spread per metric ton of marine 29.1 22.5 27.9 23.3
fuel sold (U.S. dollars) (2)
Net cash used in operating activities $(34,341) $(59,301) $(66,833) $(83,052)
Net cash used in investing activities (32,593) (4,784) (46,768) (7,628)
Net cash provided by financing activities 59,096 11,822 158,151 6,671
Sales Volume Data (Metric Tons): (3)
Total sales volumes 2,659,620 3,150,950 5,365,443 6,066,400
--------- --------- --------- ---------
Other Operating Data:
Number of owned bunkering tankers, end of period(4) 51.0 49.0 51.0 49.0
Average number of owned bunkering tankers(4)(5) 51.0 49.0 51.5 48.5
Special Purpose Vessels, end of period(6) 1.0 1.0 1.0 1.0
Number of operating storage facilities, end of period(7) 14.0 15.0 14.0 15.0
Summary Consolidated Financial and Other Data (Unaudited)
As of As of
December 31, June 30,
2014 2015
---- ----
(in thousands of U.S.
dollars,
unless otherwise
stated)
Balance
Sheet
Data:
Cash
and
cash
equivalents 129,551 42,210
Gross
trade
receivables 360,074 432,395
Allowance
for
doubtful
accounts (5,851) (7,260)
Inventories 156,990 206,190
Current
assets 736,888 750,691
Total
assets 1,484,725 1,494,196
Trade
payables 120,451 122,505
Current
liabilities
(including
current
portion
of
long-
term
debt) 531,540 482,952
Total
debt 740,880 740,590
Total
liabilities 917,309 892,279
Total
stockholder's
equity 567,416 601,917
Working
Capital
Data:
Working
capital(8) 205,348 267,739
Working
capital
excluding
cash
and
debt(8) 431,081 558,110
Notes:
1. EBITDA represents net income before
interest, taxes, depreciation and
amortization. EBITDA does not
represent and should not be
considered as an alternative to
net income or cash flow from
operations, as determined by
United States generally accepted
accounting principles, or U.S.
GAAP, and our calculation of
EBITDA may not be comparable to
that recorded by other companies.
EBITDA is included herein because
it is a basis upon which the
Company assesses its operating
performance and because the
Company believes that it presents
useful information to investors
regarding a company's ability to
service and/or incur
indebtedness. The following table
reconciles net income to EBITDA
for the periods presented:
For the Three Months Ended Jun 30,
----------------------------------
2014 2015
---- ----
(in thousands of U.S. dollars,
unless otherwise stated)
-----------------------
Net income attributable to AMPNI shareholders 9,323 7,148
Add: Net financing cost including amortization of financing costs 8,530 8,813
Add: Income tax expense/ (benefit) 1,269 (543)
Add: Depreciation and amortization excluding amortization of financing costs 7,618 8,634
EBITDA 26,740 24,052
------ ------
2. Gross spread on marine petroleum
products represents the margin the
Company generates on sales of
marine fuel and lubricants. Gross
spread on marine fuel represents
the margin that the Company
generates on sales of various
classifications of marine fuel oil
("MFO") or marine gas oil ("MGO").
Gross spread on lubricants
represents the margin that the
Company generates on sales of
lubricants. Gross spread on marine
petroleum products, gross spread
of MFO and gross spread on
lubricants are not items
recognized by U.S. GAAP and should
not be considered as an
alternative to gross profit or any
other indicator of a Company's
operating performance required by
U.S. GAAP. The Company's
definition of gross spread may not
be the same as that used by other
companies in the same or other
industries. The Company
calculates the above-mentioned
gross spreads by subtracting from
the sales of the respective marine
petroleum product the cost of the
respective marine petroleum
product sold and cargo
transportation costs. For
arrangements in which the Company
physically supplies the respective
marine petroleum product using its
bunkering tankers, costs of the
respective marine petroleum
products sold represents amounts
paid by the Company for the
respective marine petroleum
product sold in the relevant
reporting period. For arrangements
in which the respective marine
petroleum product is purchased
from the Company's related
company, Aegean Oil S.A., or
Aegean Oil, cost of the respective
marine petroleum products sold
represents the total amount paid
by the Company to the physical
supplier for the respective marine
petroleum product and its delivery
to the custom arrangements in
which the Company purchases cargos
of marine fuel for its floating
storage facilities, transportation
costs may be included in the
purchase price of marine fuels
from the supplier or may be
incurred separately from a
transportation provider. Gross
spread per metric ton of marine
fuel sold represents the margin
the Company generates per metric
ton of marine fuel sold. The
Company calculates gross spread
per metric ton of marine fuel sold
by dividing the gross spread on
marine fuel by the sales volume of
marine fuel. Marine fuel sales do
not include sales of lubricants.
The following table reflects the
calculation of gross spread per
metric ton of marine fuel sold for
the periods presented:
For the Three Months Ended
June 30,
---------------------------
2014 2015
---- ----
Sales of marine petroleum
products 1,705,188 1,189,488
Less: Cost of marine
petroleum products sold (1,627,122) (1,117,715)
Gross spread on marine
petroleum products 78,066 71,773
Less: Gross spread on
lubricants (585) (979)
---- ----
Gross spread on marine fuel 77,481 70,824
Sales volume of marine fuel
(metric tons) 2,659,620 3,150,950
--------- ---------
Gross spread per metric ton
of marine 29.1 22.5
fuel sold (U.S. dollars)
3. Sales volume of marine fuel is the
volume of sales of various
classifications of MFO and MGO for
the relevant period and is
denominated in metric tons. The
Company does not use the sales
volume of lubricants as an
indicator.
The Company's markets include its
physical supply operations in the
United Arab Emirates, Gibraltar,
Jamaica, Singapore, Northern
Europe, Vancouver, Portland (U.K.),
Trinidad and Tobago (Southern
Caribbean), Tangiers (Morocco), Las
Palmas, Tenerife, Barcelona,
Algeciras, Hamburg, US and Greece,
where the Company conducts
operations through its related
company, Aegean Oil.
4. Bunkering fleet comprises both
bunkering vessels and barges.
5. Figure represents average bunkering
fleet number for the relevant
period, as measured by the sum of
the number of days each bunkering
tanker or barge was used as part of
the fleet during the period divided
by the cumulative number of
calendar days in the period
multiplied by the number of
bunkering tankers at the end of the
period. This figure does not take
into account non-operating days
due to either scheduled or
unscheduled maintenance.
6. Special Purpose Vessels consists of
the Orion, a 550 dwt tanker which
is based in our Greek market.
7. The Company owns one barge, the
Mediterranean, as a floating
storage facility in Greece. The
Company also operates on-land
storage facilities in Portland, Las
Palmas, Fujairah, Tangiers, Panama,
U.S.A., Hamburg and Barcelona.
The ownership of storage facilities
allows the Company to mitigate its
risk of supply shortages.
Generally, storage costs are
included in the price of refined
marine fuel quoted by local
suppliers. The Company expects that
the ownership of storage facilities
will allow it to convert the
variable costs of this storage fee
mark-up per metric ton quoted by
suppliers into fixed costs of
operating its owned storage
facilities, thus enabling the
Company to spread larger sales
volumes over a fixed cost base and
to decrease its refined fuel costs.
8. Working capital is defined as
current assets minus current
liabilities. Working capital
excluding cash and debt is defined
as current assets minus cash and
cash equivalents minus restricted
cash minus current liabilities plus
short-term borrowings plus current
portion of long-term debt.
9. Net income as adjusted for non-cash
items, such as depreciation,
provision for doubtful accounts,
restricted stock, amortization,
deferred income taxes, loss on sale
of vessels, net, impairment losses,
unrealized loss/(gain) on
derivatives and unrealized foreign
exchange loss/(gain), net, is used
to assist in evaluating our
ability to make quarterly cash
distributions. Net income as
adjusted for non-cash items is not
recognized by accounting principles
generally accepted in the United
States and should not be considered
as an alternative to net income or
any other indicator of the
Company's performance required by
accounting principles generally
accepted in the United States.
Second Quarter 2015 Dividend Announcement
On August 17, 2015, the Company's Board of Directors declared a second quarter 2015 dividend of $0.02 per share payable on September 14, 2015 to shareholders of record as of August 31, 2015. The dividend amount was determined in accordance with the Company's dividend policy of paying cash dividends on a quarterly basis subject to factors including the requirements of Marshall Islands law, future earnings, capital requirements, financial condition, future prospects and such other factors as are determined by the Company's Board of Directors. The Company anticipates retaining most of its future earnings, if any, for use in operations and business expansion.
Conference Call and Webcast Information
Aegean Marine Petroleum Network Inc. will conduct a conference call and simultaneous Internet webcast on Tuesday, August 18, 2015 at 8:30 a.m. Eastern Time, to discuss its second quarter results. Investors may access the webcast and related slide presentation, by visiting the Company's website at www.ampni.com, and clicking on the webcast link. The conference call also may be accessed via telephone by dialing (888) 329-8877 (for U.S.-based callers) or (719) 325-2455 (for international callers) and enter the passcode: 9103215.
A replay of the webcast will be available soon after the completion of the call and will be accessible on www.ampni.com. A telephone replay will be available through September 1, 2015 by dialing (888) 203-1112 or (for U.S.-based callers) or (719) 457-0820 (for international callers) and enter the passcode: 9103215.
About Aegean Marine Petroleum Network Inc.
Aegean Marine Petroleum Network Inc. is an international marine fuel logistics company that markets and physically supplies refined marine fuel and lubricants to ships in port and at sea. The Company procures product from various sources (such as refineries, oil producers, and traders) and resells it to a diverse group of customers across all major commercial shipping sectors and leading cruise lines. Currently, Aegean has a global presence in 31 markets, including Vancouver, Montreal, Mexico, Jamaica, Trinidad and Tobago, Gibraltar, U.K., Northern Europe, Piraeus, Patras, the United Arab Emirates, Singapore, Morocco, the Antwerp-Rotterdam-Amsterdam (ARA) region, Las Palmas, Tenerife, Panama, Hong Kong, Barcelona, the U.S. East Coast, Los Angeles, the U.S. Gulf, Algeciras, Germany and Russia. The Company has also entered into a strategic alliance to extend its global reach to China. To learn more about Aegean, visit http://www.ampni.com.
Cautionary Statement Regarding Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "intend," "anticipate," "estimate," "project," "forecast," "plan," "potential," "may," "should," "expect" and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include our ability to manage growth, our ability to maintain our business in light of our proposed business and location expansion, our ability to obtain double hull secondhand bunkering tankers, the outcome of legal, tax or regulatory proceedings to which we may become a party, adverse conditions in the shipping or the marine fuel supply industries, our ability to retain our key suppliers and key customers, material disruptions in the availability or supply of crude oil or refined petroleum products, changes in the market price of petroleum, including the volatility of spot pricing, increased levels of competition, compliance or lack of compliance with various environmental and other applicable laws and regulations, our ability to collect accounts receivable, changes in the political, economic or regulatory conditions in the markets in which we operate, and the world in general, our failure to hedge certain financial risks associated with our business, our ability to maintain our current tax treatments and our failure to comply with restrictions in our credit agreements and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
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SOURCE Aegean Marine Petroleum Network Inc.
