AEGEAN MARINE PETROLEUM NETWORK INC. NEW YORK, May 24, 2016 /PRNewswire/ -- Aegean Marine Petroleum Network Inc. (NYSE: ANW) ("Aegean" or the "Company") today announced financial and operating results for the first quarter ended March 31, 2016.
First Quarter Financial Highlights
-- Recorded record sales volumes of 4,212,636 metric tons.
-- Achieved gross profit of $80.9 million.
-- Generated operating income of $18.3 million.
-- Recorded net income attributable to Aegean shareholders of $11.8 million
or $0.24 basic and diluted earnings per share.
-- Generated EBITDA of $27.1 million.
First Quarter Operational Highlights
-- Commenced operations in Algoa Bay, South Africa, further expanding
global platform.
-- Operated storage facilities, including the Fujairah terminal, at or near
100% capacity.
-- Strategically relocated certain vessels from lower-activity markets to
higher-growth regions.
E. Nikolas Tavlarios, Aegean's President, commented, "In the first quarter, we recorded record sales volumes despite low commodity prices, including fuel oil at its lowest point since 2003, which impacted gross spread. Despite this economic headwind, our unique business model enabled Aegean to capitalize on growth opportunities across our global platform serving 33 markets with more than 60 ports. Consistent with our goal of opportunistically entering new markets, we launched bunkering operations in Algoa Bay, a market with strong growth potential. We are pleased with the progress to date in this and remain committed to providing customers with a faster, more efficient and affordable alternative in the region."
Mr. Tavlarios continued, "To ensure Aegean is well positioned for continued success, we have addressed and are implementing a number of initiatives to drive efficiency and reduce costs to strengthen the Company. These initiatives include maximizing efficient use of our diversified platform, reducing expenses across the organization, and optimizing and investing resources in the most attractive markets. As we move forward, we are confident that these decisive actions will ensure Aegean is positioned for future growth and value creation for shareholders."
Generating Solid Financial Results
-- Revenue - The Company reported total revenue of $752.9 million for Q1
2016, a decrease of 25.8% compared to the same period in 2015 due to the
drop in oil prices. Voyage and other revenues decreased to $18.1 million
or by 12.1% compared to the same period in 2015.
-- Gross profit - Gross Profit, which equals total revenue less directly
attributable cost of revenue increased by 0.4% to $80.9 million in the
first quarter of 2016 compared to $80.6 million in the same period in
2015.
-- Operating Expense - The Company reported operating expense of $62.6
million, an increase of $2.0 million or 3.3% compared to the same period
in prior year.
-- Operating Income - Operating income for Q1 was $18.3 million, a decrease
of 9.0% compared to the same period in prior year.
-- Net Income - The Company achieved net income attributable to Aegean
shareholders for the three months ended March 31, 2016 of $11.8 million,
or $0.24 basic and diluted earnings per share a decrease of $0.4 million
or 3.3% compared to the same period in 2015.
Operational Metrics
-- Sales Volume - For the three months ended March 31, 2016, the Company
reported record marine fuel sales volumes of 4,212,636 metric tons, an
increase of 44.5% compared with the same period in 2015. Marine fuel
sales volume excluding bulk trading was 4,120,114 metric tons, an
increase of 41.3% compared with the same period in 2015.
-- EBITDA Per Metric Ton - For the three months ended March 31, 2016, the
Company reported EBITDA per metric ton sold of $6.44. EBITDA per metric
ton in the prior year period was $9.58 per metric ton.
-- Gross Spread Per Metric Ton - For the three months ended March 31, 2016,
the Company reported gross spread per metric ton on an aggregate basis
of $17.6 per metric ton. Gross spread per metric ton in the prior year
period was $24.1 per metric ton.
Liquidity and Capital Resources
-- Net cash provided by operating activities was $10.9 million for the
three months ended March 31, 2016. Net income as adjusted for non-cash
items (as defined in Note 9 below) was $50.9 million for the period.
-- Net cash used in investing activities was $8.8 million for the three
months ended March 31, 2016, primarily due to the acquisition of a
second hand vessel.
-- Net cash used in financing activities was $6.0 million for the three
months ended March 31, 2016, mainly due to the repayment of short-term
debt.
-- As of March 31, 2016, the Company had cash and cash equivalents of
$135.9 million and working capital of $361.2 million. Non-cash working
capital, or working capital excluding cash and debt, was $489.5 million.
-- As of March 31, 2016, the Company had $957.7 million undrawn amounts
under its working capital facilities and $135.9 million of unrestricted
cash and cash equivalents to finance working capital requirements.
-- The weighted average basic and diluted shares outstanding for the three
months ended March 31, 2016 was 47,545,710. The weighted average basic
and diluted shares outstanding for the three months ended March 31, 2015
was 46,840,532 respectively.
Spyros Gianniotis, Aegean's Chief Financial Officer, stated, "We are proud to have achieved our 21(st) consecutive quarter of profitability. We continue to take decisive actions to maintain our strong financial position and significant liquidity in the current challenging environment. Aegean has continued to perform in a variety of market conditions and has executed a plan to increase earnings per share of more than 57% on an adjusted basis over the last four years. We have a track record of maintaining a strong balance sheet, responsibly managing our debt and successfully and quickly de-levering. We are confident the financial and operational actions we are taking will help enable Aegean to continue enhancing value for our shareholders in the near- and long-term."
Summary Consolidated Financial and Other Data (Unaudited)
For the Three Months Ended March
31,
2015 2016
---- ----
(in thousands of U.S. dollars,
unless
otherwise stated
Income
Statement
Data:
Revenues -
third
parties $1,010,956 $748,516
Revenues -
related
companies 4,147 4,416
----- -----
Total
revenues 1,015,103 752,932
Cost of
revenues -
third
parties 892,272 661,626
Cost of
revenues -
related
companies 42,209 10,438
------ ------
Total cost
of
revenues 934,481 672,064
------- -------
Gross
profit 80,622 80,868
------ ------
Operating
expenses:
Selling and
distribution 49,817 50,772
General and
administrative 10,306 11,496
Amortization
of
intangible
assets 374 300
Loss on
sale of
vessels,
net 130 -
Operating
income 19,995 18,300
Net
financing
cost (9,326) (9,361)
Foreign
exchange
gain, net 34 239
Income
taxes
benefit 1,521 2,592
----- -----
Net income
attributable
to AMPNI
shareholders $12,224 $11,770
======= =======
Basic
earnings
per share
(U.S.
dollars) $0.25 $0.24
Diluted
earnings
per share
(U.S.
dollars) $0.25 $0.24
EBITDA(1) $27,807 $27,147
Other
Financial
Data:
Gross
spread on
marine
petroleum
products(2) $71,610 $75,068
Gross
spread on
lubricants(2) 1,239 734
Gross
spread on
marine
fuel(2) 70,371 74,334
Gross
spread per
metric ton
of marine 24.1 17.6
fuel sold
(U.S.
dollars)
(2)
Net cash
(used in)
/provided
by
operating
activities (23,751) 10,944
Net cash
used in
investing
activities (2,844) (8,755)
Net cash
used in
financing
activities $(5,151) $(6,024)
Sales
Volume
Data
(Metric
Tons): (3)
Total sales
volumes 2,915,450 4,212,636
--------- ---------
Other
Operating
Data:
Number of
owned
bunkering
tankers,
end of
period(4) 48.0 49.0
Average
number of
owned
bunkering
tankers(4)(5) 48.0 49.0
Special
Purpose
Vessels,
end of
period (6) 1.0 1.0
Number of
operating
storage
facilities,
end of
period(7) 15.0 14.0
Summary Consolidated Financial and Other Data (Unaudited)
As of As of
December 31, March 31,
2015 2016
---- ----
(in thousands of U.S.
dollars,
unless otherwise stated)
Balance
Sheet
Data:
Cash
and
cash
equivalents 139,314 135,886
Gross
trade
receivables 317,152 333,699
Allowance
for
doubtful
accounts (7,278) (8,059)
Inventories 114,531 117,826
Current
assets 730,950 740,638
Total
assets 1,445,555 1,456,501
Trade
payables 72,417 73,688
Current
liabilities
(including
current
portion
of
long-
term
debt) 384,555 379,426
Total
debt 705,559 703,139
Total
liabilities 824,029 821,797
Total
stockholder's
equity 621,526 634,704
Working
Capital
Data:
Working
capital(8) 346,395 361,212
Working
capital
excluding
cash
and
debt(8) 477,594 489,458
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 March 31,
------------------------------------
2015 2016
---- ----
(in thousands of U.S. dollars,
unless otherwise stated)
-----------------------
Net income attributable to AMPNI
shareholders 12,224 11,770
Add: Net financing cost
including amortization of
financing costs 9,326 9,361
Add: Income tax benefit (1,521) (2,592)
Add: Depreciation and
amortization excluding
amortization of financing costs 7,778 8,608
EBITDA 27,807 27,147
------ ------
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
March 31,
---------
2015 2016
---- ----
Sales of marine petroleum
products 994,545 734,815
Less: Cost of marine
petroleum products sold (922,935) (659,747)
Gross spread on marine
petroleum products 71,610 75,068
Less: Gross spread on
lubricants (1,239) (734)
------ ----
Gross spread on marine fuel 70,371 74,334
Sales volume of marine fuel
(metric tons) 2,915,450 4,212,636
--------- ---------
Gross spread per metric ton
of marine 24.1 17.6
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 include the sales
volume of lubricants in the
calculation of gross spread per
metric ton of marine fuel sold.
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 two barges, the
Mediterranean and Umnenga, as
floating storage facilities in
Greece and South Africa. The
Company also operates on-land
storage facilities in Las Palmas,
Fujairah, Tangiers, Panama, the
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.
First Quarter 2016 Dividend Announcement
On May 23, 2016, the Company's Board of Directors declared a first quarter 2016 dividend of $0.02 per share payable on June 21, 2016 to shareholders of record as of June 7, 2016. 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 Wednesday, May 25(th), 2016 at 8:30 A.M. Eastern Time, to discuss its first 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) 438-5491 (for U.S.-based callers) or (719) 325-2428 (for international callers) and enter the passcode: 6450144.
If you are unable to participate at this time, a replay of the call will be available for two weeks at 888-203-1112 or 719-457-0820. Enter the code 6450144 to access the audio replay. The webcast will also be archived on the Company's website:
http://www.ampni.com.
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 33 markets and a team of professionals ready to serve our customers wherever they are around the globe. For additional information please visit: 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.
