NEW YORK, May 23, 2017 /PRNewswire/ -- Aegean Marine
Petroleum Network Inc. (NYSE: ANW) ("Aegean" or the "Company")
today announced financial and operating results for the first
quarter ended March 31, 2017.
First Quarter Financial Highlights
- Recorded sales volumes of 4,450,263 metric tons.
- Achieved gross profit of $80.3
million.
- Generated operating income of $13.9
million.
- Recorded net income attributable to Aegean shareholders of
$1.4 million or $0.03 basic and diluted earnings per share.
- Generated EBITDA of $21.9
million.
First Quarter Operational Highlights
E. Nikolas Tavlarios, Aegean's
President, commented, "Our results in the quarter were impacted by
increased competition across operations and continued challenging
market dynamics. These results do not reflect the overall strength
of our business or our strong track record of delivering consistent
growth and stable financial results. To position Aegean for
continued success, we are actively managing our business and taking
decisive action to improve performance despite industry
headwinds. We are controlling what we can control by shifting
our strategy towards a more asset-light model and taking a
strategic view of our operations to enhance efficiency. Consistent
with our focus of actively managing our fleet, we are marketing
several vessels for sale, charter, or redeployment to the highest
growth areas. We are confident that these initiatives, once fully
implemented, will drive improved performance and value
creation."
Financial Results
- Revenue – The Company reported total revenue of $1.5 billion for the first quarter of 2017, an
increase of 102.5% compared to the same period in 2016, primarily
due to the increase in oil prices. Voyage and other revenues were,
$20.0 million, approximately
$1.9 million more than the same
period in 2016.
- Gross Profit – Gross Profit, which equals total revenue less
directly attributable cost of revenue decreased by 0.7% to
$80.3 million in the first quarter of
2017 compared to $80.9 million in the
same period in 2016.
- Operating Expense – The Company reported operating expense of
$66.5 million for the first quarter
of 2017, an increase of $3.9 million
or 6.2% compared to the same period in prior year due mainly to
higher marine fuel costs for our fleet and additional
offices.
- Operating Income – Operating income for the first quarter of
2017 was $13.9 million, a decrease of
4.4 million or 24.0% compared to the same period in prior year.
- Net Income – Net income attributable to Aegean
shareholders for the three months ended March 31, 2017 was $1.4
million, or $0.03 per basic
and diluted share, a decrease of $10.4
million or 88.1% compared to the same period in 2016 due
mainly to higher operating expenses and finance costs.
Operational Metrics
- Sales Volume – For the three months ended March 31, 2017, the Company reported marine fuel
sales volumes of 4,450,263 metric tons, an increase of 5.6%
compared to the same period in 2016.
- EBITDA Per Metric Ton of Marine Fuel Sold – For the three
months ended March 31, 2017, the
Company reported EBITDA per metric ton of marine fuel sold of
$4.93. EBITDA per metric ton of
marine fuel sold in the prior year period was $6.44 per metric ton.
- Gross Spread Per Metric Ton of Marine Fuel Sold – For the three
months ended March 31, 2017, the
Company reported gross spread per metric ton of marine fuel
sold on an aggregate basis of $16.3.
Gross spread per metric ton of marine fuel sold in the prior year
period was $17.6.
Liquidity and Capital Resources
- Net cash used in operating activities was $67.1 million for the three months ended
March 31, 2017 due mainly to higher
sales volumes in the U.S. and Northern
Europe.
- Net income as adjusted for non-cash items (as defined in Note 9
below) was $3.9 million for the same
period.
- Net cash used in investing activities was $2.8 million for the three months ended
March 31, 2017, primarily due to
advances for fixed assets under construction.
- Net cash provided by financing activities was $36.4 million for the three months ended
March 31, 2017, primarily due to
higher sales volumes.
- As of March 31, 2017, the Company
had cash and cash equivalents of $60.4
million and working capital of $432.4
million. Non-cash working capital, or working capital
excluding cash and debt, was $708.2
million.
- As of March 31, 2017, the Company
had $836.5 million undrawn amounts
under its working capital facilities and $60.4 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 March 31, 2017
was 37,735,380. The weighted average basic and diluted shares
outstanding for the three months ended March
31, 2016 was 47,545,710.
Spyros Gianniotis, Aegean's Chief
Financial Officer, stated, "During the quarter, we maintained our
financial flexibility and balance sheet strength, as we have done
throughout various market conditions. To further enhance
profitability, we are actively evaluating our markets to redeploy
assets and capital to opportunities we believe will generate the
best return and accelerate our initiatives to rationalize expenses.
"
Summary
Consolidated Financial and Other Data (Unaudited)
|
|
|
|
For the Three
Months Ended March 31,
|
|
|
|
2016
|
|
2017
|
|
|
|
(in thousands of
U.S.dollars, unless
otherwise
stated)
|
|
Income Statement
Data:
|
|
|
|
|
|
Revenues - third
parties
|
$
|
748,516
|
$
|
1,519,025
|
|
Revenues - related
companies
|
|
4,416
|
|
5,233
|
|
Total
revenues
|
|
752,932
|
|
1,524,258
|
|
Cost of
revenues - third parties
|
|
661,626
|
|
1,424,280
|
|
Cost of revenues–
related companies
|
|
10,438
|
|
19,645
|
|
Total cost of
revenues
|
|
672,064
|
|
1,443,925
|
|
Gross
profit
|
|
80,868
|
|
80,333
|
|
Operating
expenses:
|
|
|
|
|
|
Selling and
distribution
|
|
50,772
|
|
54,885
|
|
General and
administrative
|
|
11,496
|
|
11,415
|
|
Amortization of
intangible assets
|
|
300
|
|
167
|
|
Operating
income
|
|
18,300
|
|
13,866
|
|
Net financing
cost
|
|
(9,361)
|
|
(12,073)
|
|
Foreign exchange
gains, net
|
|
239
|
|
307
|
|
Income taxes benefit
/ (expense)
|
|
2,592
|
|
(729)
|
|
Net income
|
|
11,770
|
|
1,371
|
|
Less income
attributable to non-controlling interest
|
|
-
|
|
17
|
|
Net income
attributable to AMPNI shareholders
|
$
|
11,770
|
$
|
1,354
|
|
Basic earnings per
share (U.S. dollars)
|
$
|
0.24
|
$
|
0.03
|
|
Diluted earnings per
share (U.S. dollars)
|
$
|
0.24
|
$
|
0.03
|
|
|
|
|
|
|
|
EBITDA(1)
|
$
|
27,147
|
$
|
21,938
|
|
|
|
|
|
|
|
Other Financial
Data:
|
|
|
|
|
|
Gross spread on
marine petroleum products(2)
|
$
|
75,068
|
$
|
73,151
|
|
Gross spread on
lubricants(2)
|
|
734
|
|
626
|
|
Gross spread on
marine fuel(2)
|
|
74,334
|
|
72,525
|
|
Gross spread per
metric ton of marine
fuel
sold (U.S. dollars) (2)
|
|
17.6
|
|
16.3
|
|
Net cash provided by
/ (used) in operating activities
|
$
|
10,944
|
$
|
(67,090)
|
|
Net cash (used in) /
provided by investing activities
|
|
(8,755)
|
|
(2,842)
|
|
Net cash (used in) /
provided by financing activities
|
|
(6,024)
|
|
36,353
|
|
|
|
|
|
|
|
Sales Volume Data
(Metric Tons): (3)
|
|
|
|
|
|
Total sales
volumes
|
|
4,212,636
|
|
4,450,263
|
|
|
|
|
|
|
|
Other Operating
Data:
|
|
|
|
|
|
Number of owned
bunkering tankers, end of period(4)
|
|
49.0
|
|
45.0
|
|
Average number of
owned bunkering tankers(4)(5)
|
|
49.0
|
|
45.0
|
|
Special Purpose
Vessels, end of period(6)
|
|
1.0
|
|
1.0
|
|
Number of operating
storage facilities, end of period(7)
|
|
14.0
|
|
12.0
|
|
Summary
Consolidated Financial and Other Data (Unaudited)
|
|
|
|
As
of
December
31,
2016
|
As
of
March
31,
2017
|
|
|
|
|
|
|
(in thousands of
U.S. dollars,
unless otherwise
stated)
|
Balance Sheet
Data:
|
|
|
Cash and cash
equivalents
|
|
93,836
|
60,391
|
Gross trade
receivables
|
|
512,398
|
627,176
|
Allowance for
doubtful accounts
|
|
(8,647)
|
(9,411)
|
Inventories
|
|
187,766
|
172,342
|
Total Current
assets
|
|
909,252
|
963,282
|
Total
assets
|
|
1,600,933
|
1,651,216
|
Trade
payables
|
|
131,584
|
141,890
|
Total Current
liabilities (including current portion of long-term
debt)
|
|
497,712
|
530,836
|
Total debt
|
|
817,631
|
853,309
|
Total
liabilities
|
|
1,011,342
|
1,055,260
|
Total stockholder's
equity
|
|
589,591
|
595,956
|
|
|
|
|
Working Capital
Data:
|
|
|
|
Working
capital(8)
|
|
411,540
|
432,446
|
Working capital
excluding cash and debt(8)
|
|
629,370
|
708,231
|
|
|
|
|
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 March 31,
|
|
2016
|
2017
|
|
(in thousands of
U.S. dollars,
unless otherwise
stated)
|
Net income to AMPNI
shareholders
|
11,770
|
1,354
|
|
|
|
Add: Net financing cost
including amortization of financing costs
|
9,361
|
12,073
|
Add: Income
tax (benefit) / expense
|
(2,592)
|
729
|
Add:
Depreciation and amortization excluding amortization of
financing
costs
|
8,608
|
7,782
|
|
|
|
EBITDA
|
27,147
|
21,938
|
|
|
|
Add: Non-recurring
exceptional items
|
-
|
-
|
Adjusted
EBITDA
|
27,147
|
21,938
|
|
|
|
Sales volume of
marine fuel (metric tons)
|
4,212,636
|
4,450,263
|
Adjusted EBITDA per
metric ton of marine
fuel sold (U.S.
dollars)
|
6.44
|
4.93
|
|
|
|
2.
|
Gross spread on
marine petroleum products represents the margin the Company
generates on sales of marine fuel and lubricants. Gross spread on
marine fuel represents the margin that the Company generates on
sales of various classifications of marine fuel oil ("MFO") or
marine gas oil ("MGO"). Gross spread on lubricants represents the
margin that the Company generates on sales of lubricants. Gross
spread on marine petroleum products, gross spread of MFO and gross
spread on lubricants are not items recognized by U.S. GAAP and
should not be considered as an alternative to gross profit or any
other indicator of a Company's operating performance required by
U.S. GAAP. The Company's definition of gross spread may not be the
same as that used by other companies in the same or other
industries. The Company calculates the above-mentioned gross
spreads by subtracting from the sales of the respective marine
petroleum product the cost of the respective marine petroleum
product sold and cargo transportation costs. For arrangements in
which the Company physically supplies the respective marine
petroleum product using its bunkering tankers, costs of the
respective marine petroleum products sold represents amounts paid
by the Company for the respective marine petroleum product sold in
the relevant reporting period. For arrangements in which the
respective marine petroleum product is purchased from the Company's
related company, Aegean Oil S.A., or Aegean Oil, cost of the
respective marine petroleum products sold represents the total
amount paid by the Company to the physical supplier for the
respective marine petroleum product and its delivery to the custom
arrangements, in which the Company purchases cargos of marine fuel
for its floating storage facilities. Transportation costs may be
included in the purchase price of marine fuels from the supplier or
may be incurred separately from a transportation provider. Gross
spread per metric ton of marine fuel sold represents the margin the
Company generates per metric ton of marine fuel sold. The Company
calculates gross spread per metric ton of marine fuel sold by
dividing the gross spread on marine fuel by the sales volume of
marine fuel. Marine fuel sales do not include sales of lubricants.
The following table reflects the calculation of gross spread per
metric ton of marine fuel sold for the periods
presented:
|
|
For the Three
Months Ended
March 31,
|
|
|
2016
|
|
2017
|
|
|
(in thousands of
U.S. dollars,
unless otherwise
stated)
|
|
Sales of marine
petroleum products
|
734,815
|
|
1,504,241
|
|
Less: Cost of marine
petroleum products sold
|
(659,747)
|
|
(1,431,090)
|
|
Gross spread on
marine petroleum products
|
75,068
|
|
73,151
|
|
Less: Gross spread on
lubricants
|
(734)
|
|
(626)
|
|
Gross spread on
marine fuel
|
74,334
|
|
72,525
|
|
|
|
|
|
|
Sales volume of
marine fuel (metric tons)
|
4,212,636
|
|
4,450,263
|
|
|
|
|
|
|
Gross spread per
metric ton of marine
fuel sold (U.S.
dollars)
|
17.6
|
|
16.3
|
|
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. and Hamburg.
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
March
31,
|
|
|
2016
|
|
2017
|
|
|
(in thousands of
U.S. dollars,
unless otherwise
stated)
|
Net income
|
11,770
|
|
1,371
|
|
Add:
Depreciation
|
6,439
|
|
5,875
|
|
Add: Provision for
doubtful accounts
|
781
|
|
764
|
|
Add: Share based
compensation
|
2,409
|
|
1,884
|
|
Add:
Amortization
|
4,566
|
|
4,976
|
|
Add: Net deferred tax
(benefit) / expense
|
(2,879)
|
|
3,612
|
|
Add: Unrealized loss /
(gain) on derivatives
|
27,628
|
|
(14,606)
|
|
Add: Unrealized foreign
exchange loss
|
207
|
|
70
|
|
Net income as
adjusted for non-cash items
|
50,921
|
|
3,946
|
|
First Quarter 2017 Dividend Announcement
On
May 23, 2017, the Company's Board of
Directors declared a first quarter 2017 dividend of $0.02 per share payable on or about June 20, 2017 to shareholders of record as of
June 6, 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 Wednesday,
May 24th at 8:30 A.M.
Eastern Time, to discuss its first quarter results.
Investors may access the webcast and related slide presentation, by
visiting the Company's website at www.ampni.com, and clicking on
the webcast link. The conference call also may be accessed via
telephone by dialing (800) 862-9098 (for U.S.-based callers) or
785-424-1051 (for international callers) and enter the passcode:
9327926.
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 9327926 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 29
markets and a team of professionals ready to serve our customers
wherever they are around the globe. For additional information
please visit: www.ampni.com
Cautionary Statement Regarding Forward-Looking
Statements
Matters discussed in this press release may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts.
The Company desires to take advantage of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and is including this cautionary statement in connection with this
safe harbor legislation. The words "believe," "intend,"
"anticipate," "estimate," "project," "forecast," "plan,"
"potential," "may," "should," "expect" and similar expressions
identify forward-looking statements. The forward-looking statements
in this press release are based upon various assumptions, many of
which are based, in turn, upon further assumptions, including
without limitation, our management's examination of historical
operating trends, data contained in our records and other data
available from third parties. Although we believe that these
assumptions were reasonable when made, because these assumptions
are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors
that, in our view, could cause actual results to differ materially
from those discussed in the forward-looking statements include our
ability to manage growth, our ability to maintain our business in
light of our proposed business and location expansion, our ability
to obtain double hull secondhand bunkering tankers, the outcome of
legal, tax or regulatory proceedings to which we may become a
party, adverse conditions in the shipping or the marine fuel supply
industries, our ability to retain our key suppliers and key
customers, material disruptions in the availability or supply of
crude oil or refined petroleum products, changes in the market
price of petroleum, including the volatility of spot pricing,
increased levels of competition, compliance or lack of compliance
with various environmental and other applicable laws and
regulations, our ability to collect accounts receivable, changes in
the political, economic or regulatory conditions in the markets in
which we operate, and the world in general, our failure to hedge
certain financial risks associated with our business, our ability
to maintain our current tax treatments and our failure to comply
with restrictions in our credit agreements and other factors.
Please see our filings with the Securities and Exchange Commission
for a more complete discussion of these and other risks and
uncertainties.
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visit:http://www.prnewswire.com/news-releases/aegean-marine-petroleum-network-inc-announces-first-quarter-2017-financial-results-300462729.html
SOURCE Aegean Marine Petroleum Network Inc.