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
fuel sold (U.S.
dollars) (2)
|
|
29.1
|
|
22.5
|
|
|
27.9
|
|
23.3
|
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
December
31,
2014
|
As
of
June
30,
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
fuel sold (U.S.
dollars)
|
29.1
|
|
22.5
|
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 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aegean-marine-petroleum-network-inc-announces-second-quarter-2015-financial-results-300129447.html
SOURCE Aegean Marine Petroleum Network Inc.