NEW YORK, March 16, 2016 /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, 2015.
Fourth Quarter Highlights and Full Year Financial
Highlights
- Recorded sales volumes of 4,029,567 metric tons in Q4 2015 and
13,482,478 metric tons for the full year.
- Achieved gross profit of $88.3
million in Q4 and $331.8
million for the full year.
- Generated operating income of $24.1
million in Q4.
- Recorded net income attributable to Aegean shareholders of
$9.7 million or $0.20 basic and diluted earnings per share for
the fourth quarter and $35.9 million
or $0.73 basic and diluted earnings
per share for the full year.
- Net income adjusted for gains/losses on sales of assets,
impairment charges and non-cash tax item amounting to $2.4 million was $12.1
million or $0.25 basic and
diluted earnings per share for the fourth quarter and $43.7 million or $0.89 basic and diluted earnings per share for
the full year
- Generated EBITDA of $32.8 million
in Q4 and $110.8 million for the full
year.
- Full year EBITDA adjusted for gains/losses on sales of assets
and impairment charges was $116.2
million.
Fourth Quarter and Full Year Operational Highlights
- Commenced operations in Rio de
Janeiro, Brazil.
- Increased percentage of blended products sold.
- Completed the closure of Portland terminal as part of cost
rationalization strategy.
- Continued to cultivate relationships with key customers and
suppliers.
E. Nikolas Tavlarios, Aegean's
President, commented, "Our results demonstrate the merits of
Aegean's unique operating strategy and the opportunistic steps we
continuously take to position the company for growth, despite
industry headwinds. During the year we leveraged our expanding
geographic footprint and diversified business model to deliver
strong financial and operational results, including record sales
volumes. Looking ahead, our business model provides flexibility to
control expenses and adjust to rapidly-changing market conditions.
In 2016, we believe our focus on serving customers and selling
blended products will generate greater profitability and strengthen
our competitive position in large strategic markets. Through our
continued successful execution, Aegean will continue to expand its
platform for growth and value creation."
Generating Strong Financial Results
- Revenue – The Company reported total revenue of $929.1 million for Q4 2015, a decrease of 35.4%,
compared to the same period in 2014 due to the drop in oil prices.
Voyage and other revenues decreased to $16.2
million or by 3.0% compared to the same period in 2014.
- Gross profit – Gross Profit, which equals total revenue less
directly attributable cost of revenue increased by 1.4% to
$88.3 million in the fourth quarter
of 2015 compared to $87.1 million in
the same period in 2014. Gross Profit for the full year was
$331.8 million which was in-line with
the prior year's results.
- Operating Expense – The Company reported operating expense of
$64.2 million, a decrease of
$4.4 million or 6.4% compared to the
same period in prior year. Operating Expenses for the full year
2015 were $255.3 million, a decrease
of 8.6% or $23.9 million compared to
prior year.
- Operating Income – Operating income for Q4 was $24.1 million, an increase of 30.3% compared to
the same period in prior year. Operating income for the full year
was $76.6 million, an increase of
32.3% or $18.7 million over the same
period in 2014. Full year operating income adjusted for losses on
sale of assets/impairment charges was $82.0
million.
- Net Income – The Company achieved net income attributable to
Aegean shareholders for the three months ended December 31, 2015 of $9.7
million, or $0.20 basic and
diluted earnings per share an increase of $2.2 million or 29.2% compared to the same period
in 2014. Net income for the full year was $35.9 million or $0.73 basic and diluted earnings per share. Net
income adjusted for gains/losses on sales of assets, impairment
charges and a non-cash tax item amounting to $2.4 million was $12.1
million or $0.25 basic and
diluted earnings per share for the fourth quarter and $43.7 million or $0.89 basic and diluted earnings per share for
the full year.
Operational Metrics
- Sales Volume – For the three months ended December 31, 2015 the Company reported record
marine fuel sales volumes of 4,029,567 metric tons an increase of
34.0% compared with the same period in 2014. Marine fuel sales
volume excluding bulk trading was 3,439,966 metric tons, an
increase of 14.4% compared with the same period in 2014.
- EBITDA Per Metric Ton – For the three months ended December 31, 2015 the Company
reported EBITDA per metric ton sold of $8.14. EBITDA per metric ton in the prior year
period was $8.56 per metric ton.
- Gross Spread Per Metric Ton – For the three months ended
December 31, 2015 the Company
reported gross spread per metric ton on an aggregate basis of
$20.5 per metric ton. Gross spread
per metric ton in the prior year period was $26.2 per metric ton.
Liquidity and Capital Resources
- Net cash provided by operating activities was $5.3 million for the three months ended
December 31, 2015. Net income, as
adjusted for non-cash items (as defined in Note 9 below) was
$14.9 million for the period.
- Net cash provided from investing activities was $0.6 million for the three months ended
December 31, 2015, primarily due to
the release of restricted cash.
- Net cash provided by financing activities was $19.2 million for the three months ended
December 31, 2015.
- As of December 31, 2015, the
Company had cash and cash equivalents of $139.3 million and working capital of
$341.8 million. Non-cash working
capital, or working capital excluding cash and debt, was
$477.6 million.
- As of December 31, 2015, the
Company had $937.2 million undrawn
amounts under its working capital facilities and $139.3 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 December 31,
2015 was 47,436,366. The weighted average basic and diluted
shares outstanding for the three months ended December 31, 2014 was 46,336,307
respectively.
Spyros Gianniotis, Aegean's Chief
Financial Officer, stated, "During the year, we successfully
entered into a new $120 million
credit facility for our Fujairah
oil terminal, which we believe will be a key growth driver in 2016
and beyond. With a strong balance sheet and with significant
financial flexibility, Aegean is competitively positioned to
deliver returns to shareholders in a variety of market conditions.
Looking ahead, we will continue to evaluate efficient and
profitable ways to execute our proven strategy and advance our
position in the global fuel supply market."
Summary
Consolidated Financial and Other Data (Unaudited)
|
|
|
|
|
|
|
For the Three
Months Ended
December 31,
|
For the Year
Ended
December
31,
|
|
|
2014
|
|
2015
|
|
|
2014
|
|
2015
|
|
|
(in thousands of
U.S. dollars, unless otherwise stated)
|
Income Statement
Data:
|
|
|
|
|
|
|
|
|
|
Revenues - third
parties
|
$
|
1,421,385
|
$
|
924,227
|
|
$
|
6,625,244
|
$
|
4,213,359
|
Revenues - related
companies
|
|
16,139
|
|
4,872
|
|
|
36,557
|
|
20,058
|
Total
revenues
|
|
1,437,524
|
|
929,099
|
|
|
6,661,801
|
|
4,233,417
|
Cost of revenues -
third parties
|
|
1,297,505
|
|
822,602
|
|
|
5,971,819
|
|
3,764,684
|
Cost of revenues -
related companies
|
|
52,920
|
|
18,180
|
|
|
352,888
|
|
136,904
|
Total cost of
revenues
|
|
1,350,425
|
|
840,782
|
|
|
6,324,707
|
|
3,901,588
|
Gross
profit
|
|
87,099
|
|
88,317
|
|
|
337,094
|
|
331,829
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Selling and
distribution
|
|
57,621
|
|
52,033
|
|
|
220,830
|
|
205,078
|
General and
administrative
|
|
11,059
|
|
11,859
|
|
|
38,099
|
|
43,318
|
Amortization of
intangible assets
|
|
376
|
|
298
|
|
|
3,323
|
|
1,421
|
(Gain) / Loss on sale
of vessels, net
|
|
(413)
|
|
-
|
|
|
12,864
|
|
130
|
Impairment
charge
|
|
-
|
|
-
|
|
|
4,062
|
|
5,308
|
Operating
income
|
|
18,456
|
|
24,127
|
|
|
57,916
|
|
76,574
|
Net financing
cost
|
|
(8,679)
|
|
(9,949)
|
|
|
(33,781)
|
|
(37,556)
|
Foreign exchange
(loss) / gain, net
|
|
(2,787)
|
|
(291)
|
|
|
(6,032)
|
|
308
|
Income taxes benefit
/ (expense)
|
|
509
|
|
(4,176)
|
|
|
(464)
|
|
(3,446)
|
Net income
|
|
7,499
|
|
9,711
|
|
|
17,639
|
|
35,880
|
Less income
attributable to non-controlling interest
|
|
(17)
|
|
-
|
|
|
49
|
|
-
|
Net income
attributable to AMPNI shareholders
|
$
|
7,516
|
$
|
9,711
|
|
$
|
17,590
|
$
|
35,880
|
Basic earnings per
share (U.S. dollars)
|
$
|
0.16
|
$
|
0.20
|
|
$
|
$0.37
|
$
|
0.73
|
Diluted earnings per
share (U.S. dollars)
|
$
|
0.16
|
$
|
0.20
|
|
$
|
$0.37
|
$
|
0.73
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
$
|
22,894
|
$
|
32,797
|
|
$
|
82,019
|
$
|
110,806
|
|
|
|
|
|
|
|
|
|
|
Other Financial
Data:
|
|
|
|
|
|
|
|
|
|
Gross spread on
marine petroleum products(2)
|
$
|
79,633
|
$
|
84,243
|
|
$
|
304,545
|
$
|
302,052
|
Gross spread on
lubricants(2)
|
|
828
|
|
1,776
|
|
|
2,948
|
|
5,210
|
Gross spread on
marine fuel(2)
|
|
78,805
|
|
82,467
|
|
|
301,597
|
|
296,842
|
Gross spread per
metric ton of marine fuel sold
(U.S. dollars) (2)
|
|
26.2
|
|
20.5
|
|
|
26.6
|
|
22.0
|
Net cash provided by
operating activities
|
|
194,517
|
|
5,273
|
|
|
182,206
|
|
49,727
|
Net cash (used in) /
provided by investing activities
|
|
(25,952)
|
|
588
|
|
|
(59,494)
|
|
(7,614)
|
Net cash (used in) /
provided by financing activities
|
$
|
(153,710)
|
$
|
19,243
|
|
$
|
(50,280)
|
$
|
(28,254)
|
|
|
|
|
|
|
|
|
|
|
Sales Volume Data
(Metric Tons): (3)
|
|
|
|
|
|
|
|
|
|
Total sales
volumes
|
|
3,008,060
|
|
4,029,567
|
|
|
11,332,385
|
|
13,482,478
|
|
|
|
|
|
|
|
|
|
|
Other Operating
Data:
|
|
|
|
|
|
|
|
|
|
Number of owned
bunkering tankers, end of period(4)
|
|
48.0
|
|
49.0
|
|
|
48.0
|
|
49.0
|
Average number of
owned bunkering tankers(4)(5)
|
|
48.4
|
|
49.0
|
|
|
50.2
|
|
48.8
|
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
|
|
12.0
|
|
|
14.0
|
|
12.0
|
Summary
Consolidated Financial and Other Data (Unaudited)
|
|
|
|
|
|
|
As
of
December
31,
2014
|
As
of
December
31,
2015
|
|
|
|
|
|
|
(in thousands of
U.S. dollars,
unless otherwise
stated)
|
Balance Sheet
Data:
|
|
|
Cash and cash
equivalents
|
|
129,551
|
139,314
|
Gross trade
receivables
|
|
360,074
|
317,152
|
Allowance for
doubtful accounts
|
|
(5,851)
|
(7,843)
|
Inventories
|
|
156,990
|
114,531
|
Current
assets
|
|
736,328
|
730,950
|
Total
assets
|
|
1,488,315
|
1,456,656
|
Trade
payables
|
|
119,056
|
72,417
|
Current liabilities
(including current portion of long-term debt)
|
|
533,735
|
389,109
|
Total debt
|
|
740,880
|
716,660
|
Total
liabilities
|
|
920,899
|
835,130
|
Total stockholder's
equity
|
|
567,416
|
621,526
|
|
|
|
|
Working Capital
Data:
|
|
|
|
Working
capital(8)
|
|
202,593
|
341,841
|
Working capital
excluding cash and debt(8)
|
|
428,326
|
477,594
|
|
|
|
|
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 December 31,
|
|
2014
|
2015
|
|
(in thousands of
U.S. dollars,
unless otherwise
stated)
|
Net income
attributable to AMPNI shareholders
|
7,516
|
9,711
|
|
|
|
Add: Net financing cost
including amortization of financing costs
|
8,679
|
9,949
|
Add: Income
tax (benefit) / expense
|
(509)
|
4,176
|
Add:
Depreciation and amortization excluding amortization of financing
costs
|
7,208
|
8,961
|
|
|
|
EBITDA
|
22,894
|
32,797
|
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
December 31,
|
|
|
2014
|
|
2015
|
|
|
|
|
Sales of marine
petroleum products
|
1,420,811
|
|
912,890
|
|
Less: Cost of marine
petroleum products sold
|
(1,341,178)
|
|
(828,647)
|
|
Gross spread on
marine petroleum products
|
79,633
|
|
84,243
|
|
Less: Gross spread on
lubricants
|
(828)
|
|
(1,776)
|
|
Gross spread on
marine fuel
|
78,805
|
|
82,467
|
|
|
|
|
|
|
Sales volume of
marine fuel (metric tons)
|
3,008,060
|
|
4,029,567
|
|
|
|
|
|
|
Gross spread per
metric ton of marine
fuel sold (U.S.
dollars)
|
26.2
|
|
20.5
|
|
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
one barge, the Mediterranean, as a floating storage facility in
Greece. The Company also operates
on-land storage facilities in 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.
Fourth Quarter 2015 Dividend Announcement
On
March 16, 2016, the Company's Board
of Directors declared a fourth quarter 2015 dividend of
$0.02 per share payable on
April 13, 2016 to shareholders of
record as of March 30, 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 Thursday,
March 17, 2016 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 (800) 862-9098 (for U.S.-based callers) or (785) 424-1051
(for international callers) and enter the passcode: 9274352.
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 9274352 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 32 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-2015-financial-results-300237368.html
SOURCE Aegean Marine Petroleum Network Inc.