NEW YORK, Nov. 19, 2015 /PRNewswire/ -- Aegean Marine
Petroleum Network Inc. (NYSE: ANW) ("Aegean" or the "Company")
today announced financial and operating results for the third
quarter ended September 30, 2015.
Third Quarter Highlights
- Recorded sales volumes of 3,386,511 metric tons.
- Recorded gross profit of $84.4
million.
- Recorded operating income of $17.7
million which includes an impairment charge of $5.3 million related to the closure of Aegean's
Portland, UK business.
- Operating income adjusted for the impairment charge was
$23.0 million.
- Recorded net income attributable to Aegean shareholders of
$6.8 million or $0.14 basic and diluted earnings per share.
- Net income adjusted for the impairment charge related to the
closure of Aegean's Portland, U.K.
business was $12.1 million or
$0.25 basic and diluted earnings per
share.
- Recorded EBITDA of $26.2 million.
- EBITDA adjusted for the impairment charge related to the
closure of Aegean's Portland, U.K.
business was $31.5 million.
E. Nikolas Tavlarios, Aegean's
President, commented, "Aegean Marine's market leadership position
and strong financial performance provide a solid foundation for
continued growth and diversification. We are excited about the new
growth opportunities and revenue streams we are pursuing, and we
continue to shift our mix to higher return products such as lower
sulfur fuels and blended finished products. Our Fujairah Oil
Terminal continues to perform well, operating at excellent
efficiency levels and is currently at about 86% capacity. During
the quarter we expanded our customer offerings to include cargo
sales, a new area of investment for Aegean Marine that is expected
to provide us with an additional low cost revenue stream."
Revenue – The Company reported total revenue of $1.1 billion for the third quarter of 2015, a
decrease of 40.2%, compared to the same period in 2014 due to the
drop in oil prices. Voyage and other revenues increased to
$21.2 million or 14.8% compared to
the same period in 2014.
Gross profit – Gross Profit, which equals total revenue less
directly attributable cost of revenue increased by 2.2% to
$84.4 million in the third quarter of
2015 compared with $82.6 million in
the same period in 2014.
Operating Expense – The Company reported operating expense of
$66.7 million, a decrease of
$11.0 million or 14.2% from the prior
year period. When adjusted for the impairment charge related
to the closure of Aegean's Portland, U.K. business in the current quarter
and a loss on sale of assets in the prior year period the Company
reported a decrease in operating expense of $2.5 million or 3.9%.
Operating Income – Operating income for the period ended
September 30, 2015 was $17.7 million, an increase of 261.2% over the
prior year period. Operating income adjusted for the impairment
charge related to the closure of Aegean's Portland, U.K. business in the current quarter
and a loss on sale of assets in the prior year period showed an
increase of $4.3 million or
23.0%.
Net Income – The Company achieved net income attributable to
Aegean shareholders for the three months ended September 30, 2015 of $6.8
million, or $0.14 basic and
diluted earnings per share. Net income adjusted for the
impairment charge related to the closure of Aegean's Portland, U.K. business was $12.1 million or $0.25 basic and diluted earnings per share.
For the three months ended September 30,
2014, the Company recorded net income attributable to Aegean
shareholders adjusted for a loss on sale of assets of $9.4 million, or $0.20 basic and diluted earnings per share.
Operational Metrics
Sales Volume – For the three months ended September 30, 2015 the Company reported record
marine fuel sales volumes of 3,386,511 metric tons an increase of
14.5% compared with the same period in 2014.
Gross Spread Per Metric Ton – For the three months ended
September 30, 2015 the Company
reported gross spread per metric ton on an aggregate basis of
$21.6 per metric ton. Gross
spread per metric ton on Aegean's physical marine fuel supply
business was approximately $23.0 per
metric ton.
Adjusted EBITDA Per Metric Ton – For the three months ended
September 30, 2015 the Company
reported adjusted EBITDA per metric ton sold of $9.30. Adjusted EBITDA per metric ton in
the prior year period was $7.70 per
metric ton.
Liquidity and Capital Resources
Net cash provided by operating activities was $127.5 million for the three months ended
September 30, 2015. Net income, as
adjusted for non-cash items (as defined in Note 9 below) was
$19.8 million for the period.
Net cash used in investing activities was $0.5million for the three months ended
September 30, 2015, primarily due to
the purchase of fixed assets.
Net cash used in financing activities was $54.2 million for the three months ended
September 30, 2015, derived mainly
from the repayment of short-term debt.
As of September 30, 2015, the
Company had cash and cash equivalents of $115.4 million and working capital of
$281.2 million. Non-cash working
capital, or working capital excluding cash and debt, was
$457.7 million.
As of September 30, 2015, the
Company had $910.4 million undrawn
amounts under its working capital facilities and $115.4 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 September 30,
2015 was 47,434,953. The weighted average basic and diluted
shares outstanding for the three months ended September 30, 2014 were 47,434,953
respectively.
Spyros Gianniotis, Aegean's Chief
Financial Officer, stated, "We delivered strong financial results
in the quarter as a result of our differentiated and diverse
strategy, financial flexibility and solid balance sheet that can
support profitability over the long-term. We are introducing a new
metric this quarter, EBITDA per ton, which we believe more
accurately reflects Aegean's performance and the impact our
diversified revenue stream is having on the bottom line. Looking
ahead, we remain focused on advancing our position in the fuel
supply industry and enhancing our global footprint. We are
confident in our ability to create value for shareholders, continue
successfully executing our strategy and drive profitability."
Summary Consolidated Financial and Other Data
(Unaudited)
|
|
For the Three
Months Ended
September 30,
|
For the Nine
Months Ended
September
30,
|
|
|
2014
|
|
2015
|
|
|
2014
|
|
2015
|
|
|
(in thousands of
U.S. dollars, unless otherwise stated)
|
Income Statement
Data:
|
|
|
|
|
|
|
|
|
|
Revenues - third
parties
|
$
|
1,801,722
|
$
|
1,075,076
|
|
$
|
5,203,859
|
$
|
3,289,132
|
Revenues - related
companies
|
|
7,977
|
|
6,432
|
|
|
20,418
|
|
15,186
|
Total
revenues
|
|
1,809,699
|
|
1,081,508
|
|
|
5,224,277
|
|
3,304,318
|
Cost of
revenues - third parties
|
|
1,615,070
|
|
971,698
|
|
|
4,674,314
|
|
2,942,082
|
Cost of revenues–
related companies
|
|
112,010
|
|
25,401
|
|
|
299,968
|
|
118,724
|
Total cost of
revenues
|
|
1,727,080
|
|
997,099
|
|
|
4,974,282
|
|
3,060,806
|
Gross
profit
|
|
82,619
|
|
84,409
|
|
|
249,995
|
|
243,512
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Selling and
distribution
|
|
52,443
|
|
50,484
|
|
|
163,209
|
|
153,045
|
General and
administrative
|
|
10,577
|
|
10,551
|
|
|
27,040
|
|
31,459
|
Amortization of
intangible assets
|
|
892
|
|
374
|
|
|
2,947
|
|
1,123
|
Loss / (gain) on sale
of vessels, net
|
|
13,770
|
|
-
|
|
|
13,277
|
|
130
|
Impairment
charge
|
|
-
|
|
5,308
|
|
|
4,062
|
|
5,308
|
Operating
income
|
|
4,937
|
|
17,692
|
|
|
39,460
|
|
52,447
|
Net financing
cost
|
|
(8,112)
|
|
(9,468)
|
|
|
(25,102)
|
|
(27,607)
|
Gain on sale of
subsidiary, net
|
|
-
|
|
-
|
|
|
-
|
|
-
|
Foreign exchange
(loss) / gain, net
|
|
(3,342)
|
|
(93)
|
|
|
(3,245)
|
|
599
|
Income taxes
(expense) / benefit
|
|
2,192
|
|
(1,334)
|
|
|
(973)
|
|
730
|
Net income
|
|
(4,325)
|
|
6,797
|
|
|
10,140
|
|
26,169
|
Less income
attributable to non-controlling interest
|
|
20
|
|
-
|
|
|
66
|
|
-
|
Net income
attributable to AMPNI shareholders
|
$
|
(4,345)
|
$
|
6,797
|
|
$
|
10,074
|
$
|
26,169
|
Basic earnings per
share (U.S. dollars)
|
$
|
(0.09)
|
$
|
0.14
|
|
$
|
0.21
|
$
|
0.53
|
Diluted earnings per
share (U.S. dollars)
|
$
|
(0.09)
|
$
|
0.14
|
|
$
|
0.21
|
$
|
0.53
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
$
|
8,929
|
$
|
26,150
|
|
$
|
59,125
|
$
|
78,009
|
|
|
|
|
|
|
|
|
|
|
Other Financial
Data:
|
|
|
|
|
|
|
|
|
|
Gross spread on
marine petroleum products(2)
|
$
|
73,578
|
$
|
74,426
|
|
$
|
224,912
|
$
|
217,809
|
Gross spread on
lubricants(2)
|
|
633
|
|
1,246
|
|
|
2,120
|
|
3,434
|
Gross spread on
marine fuel(2)
|
|
72,945
|
|
73,180
|
|
|
222,792
|
|
214,375
|
Gross spread per
metric ton of marine fuel sold
(U.S. dollars) (2)
|
|
24.7
|
|
21.6
|
|
|
26.8
|
|
22.7
|
Net cash provided by
/ (used in) operating activities
|
$
|
54,522
|
$
|
127,506
|
|
$
|
(12,311)
|
$
|
44,454
|
Net cash provided by
/ (used in) investing activities
|
|
13,226
|
|
(544)
|
|
|
(33,542)
|
|
(8,172)
|
Net cash provided by
/ (used in) financing activities
|
|
(54,721)
|
|
(54,168)
|
|
|
103,430
|
|
(47,497)
|
|
|
|
|
|
|
|
|
|
|
Sales Volume Data
(Metric Tons): (3)
|
|
|
|
|
|
|
|
|
|
Total sales
volumes
|
|
2,958,882
|
|
3,386,511
|
|
|
8,324,325
|
|
9,452,911
|
|
|
|
|
|
|
|
|
|
|
Other Operating
Data:
|
|
|
|
|
|
|
|
|
|
Number of owned
bunkering tankers, end of period(4)
|
|
49.0
|
|
49.0
|
|
|
49.0
|
|
49.0
|
Average number of
owned bunkering tankers(4)(5)
|
|
49.4
|
|
49.0
|
|
|
50.8
|
|
48.7
|
Special Purpose
Vessels, end of period (6)
|
|
1.0
|
|
1.0
|
|
|
1.0
|
|
1.0
|
Number of operating
storage facilities, end of period(7)
|
|
13.0
|
|
14.0
|
|
|
13.0
|
|
14.0
|
Summary Consolidated Financial and Other Data
(Unaudited)
|
|
As
of
December
31,
2014
|
As
of
September
30,
2015
|
|
|
|
|
|
|
(in thousands of
U.S. dollars,
unless otherwise
stated)
|
Balance Sheet
Data:
|
|
|
Cash and cash
equivalents
|
|
129,551
|
115,397
|
Gross trade
receivables
|
|
360,074
|
361,412
|
Allowance for
doubtful accounts
|
|
(5,851)
|
(7,012)
|
Inventories
|
|
156,990
|
163,822
|
Current
assets
|
|
736,888
|
714,849
|
Total
assets
|
|
1,484,725
|
1,445,619
|
Trade
payables
|
|
120,451
|
110,576
|
Current liabilities
(including current portion of long-term debt)
|
|
531,540
|
433,637
|
Total debt
|
|
740,880
|
691,402
|
Total
liabilities
|
|
917,309
|
835,416
|
Total stockholder's
equity
|
|
567,416
|
610,203
|
|
|
|
|
Working Capital
Data:
|
|
|
|
Working
capital(8)
|
|
205,348
|
281,212
|
Working capital
excluding cash and debt(8)
|
|
431,081
|
457,703
|
|
|
|
|
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 September 30,
|
|
2014
|
2015
|
|
(in thousands of
U.S. dollars,
unless otherwise
stated)
|
Net income
attributable to AMPNI shareholders
|
(4,345)
|
6,797
|
|
|
|
Add: Net financing cost
including amortization of financing costs
|
8,112
|
9,468
|
Add: Income
tax expense/ (benefit)
|
(2,192)
|
1,334
|
Add:
Depreciation and amortization excluding amortization of financing
costs
|
7,354
|
9,235
|
|
|
|
EBITDA
|
8,929
|
26,150
|
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 September 30,
|
|
|
2014
|
|
2015
|
|
|
|
Sales of marine
petroleum products
|
1,791,261
|
|
1,060,342
|
|
Less: Cost of marine
petroleum products sold
|
(1,717,683)
|
|
(985,916)
|
|
Gross spread on
marine petroleum products
|
73,578
|
|
74,426
|
|
Less: Gross spread on
lubricants
|
(633)
|
|
(1,246)
|
|
Gross spread on
marine fuel
|
72,945
|
|
73,180
|
|
|
|
|
|
|
Sales volume of
marine fuel (metric tons)
|
2,958,882
|
|
3,386,511
|
|
|
|
|
|
|
Gross spread per
metric ton of marine
fuel sold (U.S.
dollars)
|
24.7
|
|
21.6
|
|
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,
Trinidad and Tobago (Southern Caribbean), Tangiers (Morocco), Las
Palmas, Tenerife, Barcelona, Algeciras, Hamburg, U.S.A. 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 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.
Third Quarter 2015 Dividend Announcement
On November 19, 2015, the
Company's Board of Directors declared a third quarter 2015 dividend
of $0.02 per share payable on
December 17, 2015 to shareholders of
record as of December 3, 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 Thursday, November 19, 2015 at 4:30 P.M. Eastern Time, to discuss its third
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)
417-8533 (for U.S.-based callers) or (719) 325-2361 (for
international callers) and enter the passcode: 623974.
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: 623974.
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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aegean-marine-petroleum-network-inc-announces-third-quarter-2015-financial-results-300182180.html
SOURCE Aegean Marine Petroleum Network Inc.