AEGEAN MARINE PETROLEUM NETWORK INC. NEW YORK, March 1, 2017 /PRNewswire/ -- Aegean Marine Petroleum Network Inc. (NYSE: ANW) ("Aegean" or the "Company") today announced financial and operating results for the fourth quarter ended December 31, 2016.
Fourth Quarter Highlights and Full Year Financial Highlights
-- Recorded sales volumes of 3,954,700 metric tons in Q4 2016 and
16,519,079 metric tons for the full year.
-- Achieved gross profit of $90.8 million in Q4 and $353.5 million for the
full year.
-- Generated operating income of $24.4 million in Q4.
-- Recorded net income attributable to Aegean shareholders of $16.0 million
or $0.41 basic and diluted earnings per share for the fourth quarter and
$51.9 million or $1.14 basic and diluted earnings per share for the full
year.
-- Adjusted Net income for the full year was $61.4 million or $1.35
basic and diluted earnings per share.
-- Generated EBITDA of $32.5 million in Q4 and $125.6 million for the full
year.
-- Full year adjusted EBITDA was $135.2 million.
Fourth Quarter and Full Year Operational Highlights
E. Nikolas Tavlarios, Aegean's President, commented, "The fourth quarter marked the end of another strong year for Aegean, despite volatile commodity markets and increased competition. Our flexible business model continued to enable Aegean to capitalize on growth opportunities across our unique platform. As evidenced by consistent portfolio rationalization, we are focused on strengthening our operations and enhancing efficiencies across our business. Our global footprint now includes more than 30 markets and 51 ports, with a team dedicated to ensuring that customers are better equipped to run their businesses. We remain committed to executing our strategy and confident in our ability to generate sustainable growth to drive shareholder value."
Generated Solid Financial Results
-- Revenue - The Company reported total revenue of $1.2 billion for the
fourth quarter of 2016, an increase of 29.0% compared to the same period
in 2015, primarily due to the increase in oil prices. Voyage and other
revenues were, $20.6 million, approximately $4.4 million more than the
same period in 2015.
-- Gross Profit - Gross Profit, which equals total revenue less directly
attributable cost of revenue increased by 2.8% to $90.8 million in the
fourth quarter of 2016 compared to $88.3 million in the same period in
2015.
-- Operating Expense - The Company reported operating expense of $66.4
million for the fourth quarter of 2016, an increase of $2.2 million or
3.4% compared to the same period in prior year.
-- Operating Income - Operating income for the fourth quarter of 2016 was
$24.4 million, in line with the same period for the prior year.
-- Net Income - Net income attributable to Aegean shareholders was $16.0
million, or $0.41 per basic and diluted share, an increase of $6.3
million or 64.9% compared to the same period in 2015. Net income for
the full year was $51.9 million or $1.14 basic and diluted earnings per
share. Net income for the full year adjusted for gains/losses on sales
of assets, impairment charges and the Accelerated Shares was $61.4
million or $1.35 basic and diluted earnings per share.
Operational Metrics
-- Sales Volume - For the three months ended December 31, 2016, the Company
reported marine fuel sales volumes of 3,954,700 metric tons, a decrease
of 1.9% compared to the same period in 2015.
-- Adjusted EBITDA Per Metric Ton of Marine Fuel Sold - For the three
months ended December 31, 2016, the Company reported adjusted EBITDA per
metric ton of marine fuel sold of $8.21. Adjusted EBITDA per metric ton
of marine fuel sold in the prior year period was $8.14 per metric ton.
-- Gross Spread Per Metric Ton of Marine Fuel Sold - For the three months
ended December 31, 2016, the Company reported gross spread per metric
ton of marine fuel sold on an aggregate basis of $21.1. Gross spread per
metric ton of marine fuel sold in the prior year period was $20.5.
Liquidity and Capital Resources
-- Net cash used in operating activities was $32.8 million for the three
months ended December 31, 2016. Net income as adjusted for non-cash
items (as defined in Note 9 below) was $25.9 million for the same
period.
-- Net cash used in investing activities was $2.4 million for the three
months ended December 31, 2016, primarily due to advances for fixed
assets under construction.
-- Net cash provided by financing activities was $71.5 million for the
three months ended December 31, 2016, primarily due to the proceeds from
our recent convertible bond offering.
-- The weighted average basic and diluted shares outstanding for the three
months ended December 31, 2016 was 37,612,600. The weighted average
basic and diluted shares outstanding for the three months ended December
31, 2015 was 47,436,953.
Spyros Gianniotis, Aegean's Chief Financial Officer, stated, "Our solid results and accomplishments during the quarter demonstrate the long-term potential of our financial strategy. During the fourth quarter we continued our focus on driving higher margins and profitable volume and improved our financial strength. We have maintained a strong balance sheet and are confident our flexibility will support Aegean's continued success. Looking ahead, we will continue to deploy our resources into the most effective and profitable markets to generate the greatest return for Aegean shareholders."
Summary Consolidated Financial and Other Data (Unaudited)
For the Three Months Ended For the Year Ended
December 31, December 31,
2015 2016 2015 2016
---- ---- ---- ----
(in thousands of U.S. dollars, unless otherwise stated)
Income Statement Data:
Revenues - third parties $922,464 $1,191,718 $4,211,596 $4,055,883
Revenues - related companies 4,872 4,457 20,058 20,336
----- ----- ------ ------
Total revenues 927,336 1,196,175 4,231,654 4,076,219
Cost of revenues - third parties 820,839 1,090,618 3,762,688 3,658,681
Cost of revenues- related companies 18,180 14,760 137,137 64,054
------ ------ ------- ------
Total cost of revenues 839,019 1,105,378 3, 899,825 3,722,735
------- --------- ---------- ---------
Gross profit 88,317 90,797 331,829 353,484
------ ------ ------- -------
Operating expenses:
Selling and distribution 52,033 53,345 205,078 202,266
General and administrative 11,859 12,907 43,318 49,757
Amortization of intangible assets 298 170 1,421 1,070
Loss on sale of vessels - - 130 6,312
Impairment Charge - - 5,308 -
Operating income 24,127 24,375 76,574 94,079
Net financing cost (9,949) (6,091) (37,556) (36,248)
Foreign exchange (losses) / gains, net (291) 260 308 (1,544)
Income tax (expense) (4,176) (2,547) (3,446) (4,358)
------ ------ ------ ------
Net income 9,711 15,997 35,880 51,929
----- ------ ------ ------
Less (loss)/income attributable to non-controlling interest - (28) - 58
--- --- --- ---
Net income attributable to AMPNI shareholders $9,711 $16,025 $35,880 $51,871
====== ======= ======= =======
Basic earnings per share (U.S. dollars) $0.20 $0.41 $0.73 $1.14
Diluted earnings per share (U.S. dollars) $0.20 $0.41 $0.73 $1.14
EBITDA(1) $32,797 $32,458 $110,806 $125,610
Other Financial Data:
Gross spread on marine petroleum products(2) $84,243 $84,068 $302,052 $326,100
Gross spread on lubricants(2) 1,776 792 5,210 3,671
Gross spread on marine fuel(2) 82,467 83,276 296,842 322,429
Gross spread per metric ton of marine 20.5 21.1 22.0 19.5
fuel sold (U.S. dollars) (2)
Net cash provided by / (used) in operating activities $5,273 $(32,817) $49,727 $(47,615)
Net cash provided by / (used in) investing activities 588 (2,426) (7,614) (2,227)
Net cash provided by / (used in) financing activities 19,243 71,530 (28,254) 4,202
Sales Volume Data (Metric Tons): (3)
Total sales volumes 4,029,567 3,954,700 13,482,478 16,519,079
--------- --------- ---------- ----------
Other Operating Data:
Number of owned bunkering tankers, end of period(4) 49.0 45.0 49.0 45.0
Average number of owned bunkering tankers(4)(5) 49.0 45.0 48.8 47.1
Special Purpose Vessels, end of period(6) 1.0 1.0 1.0 1.0
Number of operating storage facilities, end of period(7) 12.0 13.0 12.0 13.0
Summary Consolidated Financial and Other Data (Unaudited)
As of As of
December 31, December 31,
2015 2016
---- ----
(in thousands of U.S.
dollars,
unless otherwise stated)
Balance Sheet Data:
Cash and cash equivalents 139,314 93,836
Gross trade receivables 317,152 512,398
Allowance for doubtful accounts (7,278) (8,647)
Inventories 114,531 187,766
Total Current assets 730,950 909,252
Total assets 1,450,011 1,600,933
Trade payables 72,417 131,584
Total Current liabilities (including current portion of long-term debt) 389,109 495,631
Total debt 710,015 817,631
Total liabilities 828,485 1,006,703
Total stockholder's equity 621,526 594,230
Working Capital Data:
Working capital(8) 341,841 413,621
Working capital excluding cash and debt(8) 477,594 631,451
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.
Adjusted EBITDA represents net
income before interest, taxes,
depreciation and amortization,
vessel and investment
impairments, gains/losses on
vessel disposals and other non-
recurring exceptional items.
EBITDA and Adjusted EBITDA are
included herein because they
are a basis upon which the
Company assesses its operating
performance.
Adjusted EBITDA per metric ton
of marine fuel sold represents
the net income before interest,
taxes, depreciation and
amortization, vessel and
investment impairments, gains/
losses on vessel disposals and
other non-recurring
exceptional items the Company
generates per metric ton of
marine fuel sold. The Company
calculates Adjusted EBITDA per
metric ton of marine fuel sold
by dividing the EBITDA by the
sales volume of marine fuel.
Marine fuel sales do not
include sales of lubricants.
The following table reconciles
net income attributable to
AMPNI to EBITDA, Adjusted
EBITDA and Adjusted EBITDA per
metric ton of marine fuel sold
for the periods presented:
For the Three Months Ended For the Year Ended
December 31, December 31,
------------ ------------
2015 2016 2015 2016
---- ---- ---- ----
(in thousands of U.S. dollars,
unless otherwise stated)
-----------------------
Net income to AMPNI shareholders 9,711 16,025 35,880 51,871
Add: Net financing cost including amortization of financing costs 9,949 6,091 37,556 36,248
Add: Income tax expense 4,176 2,547 3,446 4,358
Add: Depreciation and amortization excluding amortization of financing costs 8,961 7,795 33,924 33,133
EBITDA 32,797 32,458 110,806 125,610
------ ------ ------- -------
Add: Loss on sale of vessels - - 130 6,312
--- --- --- -----
Add: Impairment charge - - 5,308 -
--- --- ----- ---
Add: Accelerated Vesting of Aegean's Founder Shares - - - 3,230
--- --- --- -----
Adjusted EBITDA 32,797 32,458 116,244 135,152
------ ------ ------- -------
Sales volume of marine fuel (metric tons) 4,029,567 3,954,700 13,482,478 16,519,079
--------- --------- ---------- ----------
Adjusted EBITDA per metric ton of marine 8.14 8.21 8.62 8.18
fuel sold (U.S. dollars)
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 For the Year Ended
December 31, December 31,
------------ ------------
2015 2016 2015 2016
---- ---- ---- ----
(in thousands of U.S. dollars,
unless otherwise stated)
-----------------------
Sales of marine petroleum products 911,127 1,175,578 4,155,502 3,996,642
Less: Cost of marine petroleum products sold (826,884) (1,091,510) (3,853,450) (3,670,542)
-------- ---------- ---------- ----------
Gross spread on marine petroleum products 84,243 84,068 302,052 326,100
Less: Gross spread on lubricants (1,776) (792) (5,210) (3,671)
------ ---- ------ ------
Gross spread on marine fuel 82,467 83,276 296,842 322,429
Sales volume of marine fuel (metric tons) 4,029,567 3,954,700 13,482,478 16,519,079
--------- --------- ---------- ----------
Gross spread per metric ton of marine 20.5 21.1 22.0 19.5
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 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, 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,
share-based compensation,
amortization, deferred income
taxes, gain/loss on sale of
vessels, 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.
The following table reflects the
calculation of net income as
adjusted for non-cash items for
the periods presented:
For the Three Months Ended For the Year Ended
December 31, December 31,
------------ ------------
2015 2016 2015 2016
---- ---- ---- ----
(in thousands of U.S. dollars,
unless otherwise stated)
-----------------------
Net income 9,711 15,997 35,880 51,929
Add: Depreciation 6,699 5,997 25,799 24,941
Add: Provision for doubtful accounts 831 2,433 1,992 3,624
Add: Share based compensation 2,600 1,990 10,042 12,229
Add: Amortization 5,212 4,731 18,998 18,417
Add: Net deferred tax expense / (benefit) 4,050 (450) 2,388 (1,121)
Add: Unrealized (gain) / loss on derivatives (14,158) (4,007) (3,647) 29,445
Add: Loss on sale of vessels - - 130 6,312
Add: Impairment charge - - 5,308 -
Add: Unrealized foreign exchange loss / (gain) 4 (809) (446) (678)
Net income as adjusted for non-cash items 14,949 25,882 96,444 145,098
====== ====== ====== =======
Fourth Quarter 2016 Dividend Announcement
On March 1, 2017, the Company's Board of Directors declared a fourth quarter 2016 dividend of $0.02 per share payable on or about March 29, 2017 to shareholders of record as of March 15, 2017. 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 Thursday, March 2(nd) at 8:30 A.M. Eastern Time, to discuss its fourth 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 (877) 419-6593 (for U.S.-based callers) or 719-325-4901 (for international callers) and enter the passcode: 1920480.
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 1920480 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 over 30 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.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/aegean-marine-petroleum-network-inc-announces-fourth-quarter-2016-financial-results-300416281.html
SOURCE Aegean Marine Petroleum Network Inc.
