NEW YORK, May 24, 2016 /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, 2016.
First Quarter Financial Highlights
- Recorded record sales volumes of 4,212,636 metric tons.
- Achieved gross profit of $80.9
million.
- Generated operating income of $18.3
million.
- Recorded net income attributable to Aegean shareholders of
$11.8 million or $0.24 basic and diluted earnings per share.
- Generated EBITDA of $27.1
million.
First Quarter Operational Highlights
- Commenced operations in Algoa Bay, South Africa, further expanding global
platform.
- Operated storage facilities, including the Fujairah terminal, at or near 100%
capacity.
- Strategically relocated certain vessels from lower-activity
markets to higher-growth regions.
E. Nikolas Tavlarios, Aegean's
President, commented, "In the first quarter, we recorded record
sales volumes despite low commodity prices, including fuel oil at
its lowest point since 2003, which impacted gross spread. Despite
this economic headwind, our unique business model enabled Aegean to
capitalize on growth opportunities across our global platform
serving 33 markets with more than 60 ports. Consistent with our
goal of opportunistically entering new markets, we launched
bunkering operations in Algoa Bay, a market with strong growth
potential. We are pleased with the progress to date in this and
remain committed to providing customers with a faster, more
efficient and affordable alternative in the region."
Mr. Tavlarios continued, "To ensure Aegean is well positioned
for continued success, we have addressed and are implementing a
number of initiatives to drive efficiency and reduce costs to
strengthen the Company. These initiatives include maximizing
efficient use of our diversified platform, reducing expenses across
the organization, and optimizing and investing resources in the
most attractive markets. As we move forward, we are confident that
these decisive actions will ensure Aegean is positioned for future
growth and value creation for shareholders."
Generating Solid Financial Results
- Revenue – The Company reported total revenue of $752.9 million for Q1 2016, a decrease of 25.8%
compared to the same period in 2015 due to the drop in oil prices.
Voyage and other revenues decreased to $18.1
million or by 12.1% compared to the same period in
2015.
- Gross profit – Gross Profit, which equals total revenue less
directly attributable cost of revenue increased by 0.4% to
$80.9 million in the first quarter of
2016 compared to $80.6 million in the
same period in 2015.
- Operating Expense – The Company reported operating expense of
$62.6 million, an increase of
$2.0 million or 3.3% compared to the
same period in prior year.
- Operating Income – Operating income for Q1 was $18.3 million, a decrease of 9.0% compared to the
same period in prior year.
- Net Income – The Company achieved net income attributable to
Aegean shareholders for the three months ended March 31, 2016 of $11.8
million, or $0.24 basic and
diluted earnings per share a decrease of $0.4 million or 3.3% compared to the same period
in 2015.
Operational Metrics
- Sales Volume – For the three months ended March 31, 2016, the Company reported record
marine fuel sales volumes of 4,212,636 metric tons, an increase of
44.5% compared with the same period in 2015. Marine fuel sales
volume excluding bulk trading was 4,120,114 metric tons, an
increase of 41.3% compared with the same period in 2015.
- EBITDA Per Metric Ton – For the three months ended March 31, 2016, the Company reported EBITDA
per metric ton sold of $6.44. EBITDA
per metric ton in the prior year period was $9.58 per metric ton.
- Gross Spread Per Metric Ton – For the three months ended
March 31, 2016, the Company
reported gross spread per metric ton on an aggregate basis of
$17.6 per metric ton. Gross spread
per metric ton in the prior year period was $24.1 per metric ton.
Liquidity and Capital Resources
- Net cash provided by operating activities was $10.9 million for the three months ended
March 31, 2016. Net income as
adjusted for non-cash items (as defined in Note 9 below) was
$50.9 million for the period.
- Net cash used in investing activities was $8.8 million for the three months ended
March 31, 2016, primarily due to the
acquisition of a second hand vessel.
- Net cash used in financing activities was $6.0 million for the three months ended
March 31, 2016, mainly due to the
repayment of short-term debt.
- As of March 31, 2016, the Company
had cash and cash equivalents of $135.9
million and working capital of $361.2
million. Non-cash working capital, or working capital
excluding cash and debt, was $489.5
million.
- As of March 31, 2016, the Company
had $957.7 million undrawn amounts
under its working capital facilities and $135.9 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, 2016
was 47,545,710. The weighted average basic and diluted shares
outstanding for the three months ended March
31, 2015 was 46,840,532 respectively.
Spyros Gianniotis, Aegean's Chief
Financial Officer, stated, "We are proud to have achieved our
21st consecutive quarter of profitability. We
continue to take decisive actions to maintain our strong financial
position and significant liquidity in the current challenging
environment. Aegean has continued to perform in a variety of
market conditions and has executed a plan to increase earnings per
share of more than 57% on an adjusted basis over the last four
years. We have a track record of maintaining a strong balance
sheet, responsibly managing our debt and successfully and quickly
de-levering. We are confident the financial and operational actions
we are taking will help enable Aegean to continue enhancing value
for our shareholders in the near- and long-term."
|
Summary
Consolidated Financial and Other Data (Unaudited)
|
|
|
|
|
|
For the Three
Months Ended March 31,
|
|
|
2015
|
|
2016
|
|
|
(in thousands of
U.S. dollars, unless
otherwise stated
|
|
Income Statement
Data:
|
|
|
|
|
|
|
Revenues - third
parties
|
$
|
1,010,956
|
$
|
748,516
|
|
|
Revenues - related
companies
|
|
4,147
|
|
4,416
|
|
|
Total
revenues
|
|
1,015,103
|
|
752,932
|
|
|
Cost of revenues -
third parties
|
|
892,272
|
|
661,626
|
|
|
Cost of revenues -
related companies
|
|
42,209
|
|
10,438
|
|
|
Total cost of
revenues
|
|
934,481
|
|
672,064
|
|
|
Gross
profit
|
|
80,622
|
|
80,868
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Selling and
distribution
|
|
49,817
|
|
50,772
|
|
|
General and
administrative
|
|
10,306
|
|
11,496
|
|
|
Amortization of
intangible assets
|
|
374
|
|
300
|
|
|
Loss on sale of
vessels, net
|
|
130
|
|
-
|
|
|
Operating
income
|
|
19,995
|
|
18,300
|
|
|
Net financing
cost
|
|
(9,326)
|
|
(9,361)
|
|
|
Foreign exchange
gain, net
|
|
34
|
|
239
|
|
|
Income taxes
benefit
|
|
1,521
|
|
2,592
|
|
|
Net income
attributable to AMPNI shareholders
|
$
|
12,224
|
$
|
11,770
|
|
|
Basic earnings per
share (U.S. dollars)
|
$
|
0.25
|
$
|
0.24
|
|
|
Diluted earnings per
share (U.S. dollars)
|
$
|
0.25
|
$
|
0.24
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
$
|
27,807
|
$
|
27,147
|
|
|
|
|
|
|
|
|
Other Financial
Data:
|
|
|
|
|
|
|
Gross spread on
marine petroleum products(2)
|
$
|
71,610
|
$
|
75,068
|
|
|
Gross spread on
lubricants(2)
|
|
1,239
|
|
734
|
|
|
Gross spread on
marine fuel(2)
|
|
70,371
|
|
74,334
|
|
|
Gross spread per
metric ton of marine
fuel sold (U.S.
dollars) (2)
|
|
24.1
|
|
17.6
|
|
|
Net cash (used in) /
provided by operating activities
|
|
(23,751)
|
|
10,944
|
|
|
Net cash used in
investing activities
|
|
(2,844)
|
|
(8,755)
|
|
|
Net cash used in
financing activities
|
$
|
(5,151)
|
$
|
(6,024)
|
|
|
|
|
|
|
|
|
Sales Volume Data
(Metric Tons): (3)
|
|
|
|
|
|
|
Total sales
volumes
|
|
2,915,450
|
|
4,212,636
|
|
|
|
|
|
|
|
|
Other Operating
Data:
|
|
|
|
|
|
|
Number of owned
bunkering tankers, end of period(4)
|
|
48.0
|
|
49.0
|
|
|
Average number of
owned bunkering tankers(4)(5)
|
|
48.0
|
|
49.0
|
|
|
Special Purpose
Vessels, end of period (6)
|
|
1.0
|
|
1.0
|
|
|
Number of operating
storage facilities, end of period(7)
|
|
15.0
|
|
14.0
|
|
|
Summary
Consolidated Financial and Other Data (Unaudited)
|
|
|
|
As
of
December
31,
2015
|
As
of
March
31,
2016
|
|
|
|
|
|
|
(in thousands of
U.S. dollars,
unless
otherwise stated)
|
|
Balance Sheet
Data:
|
|
|
|
Cash and cash
equivalents
|
|
139,314
|
135,886
|
|
Gross trade
receivables
|
|
317,152
|
333,699
|
|
Allowance for
doubtful accounts
|
|
(7,278)
|
(8,059)
|
|
Inventories
|
|
114,531
|
117,826
|
|
Current
assets
|
|
730,950
|
740,638
|
|
Total
assets
|
|
1,445,555
|
1,456,501
|
|
Trade
payables
|
|
72,417
|
73,688
|
|
Current liabilities
(including current portion of long-term debt)
|
|
384,555
|
379,426
|
|
Total debt
|
|
705,559
|
703,139
|
|
Total
liabilities
|
|
824,029
|
821,797
|
|
Total stockholder's
equity
|
|
621,526
|
634,704
|
|
|
|
|
|
Working Capital
Data:
|
|
|
|
|
Working
capital(8)
|
|
346,395
|
361,212
|
|
Working capital
excluding cash and debt(8)
|
|
477,594
|
489,458
|
|
|
|
|
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 March 31,
|
|
2015
|
2016
|
|
(in thousands of
U.S. dollars,
unless otherwise
stated)
|
|
Net income
attributable to AMPNI shareholders
|
12,224
|
11,770
|
|
|
|
|
Add: Net financing cost
including amortization of financing costs
|
9,326
|
9,361
|
|
Add: Income tax
benefit
|
(1,521)
|
(2,592)
|
|
Add:
Depreciation and amortization excluding amortization of financing
costs
|
7,778
|
8,608
|
|
|
|
|
EBITDA
|
27,807
|
27,147
|
|
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,
|
|
|
2015
|
|
2016
|
|
|
|
|
Sales of marine
petroleum products
|
994,545
|
|
734,815
|
|
|
Less: Cost of marine
petroleum products sold
|
(922,935)
|
|
(659,747)
|
|
|
Gross spread on
marine petroleum products
|
71,610
|
|
75,068
|
|
|
Less: Gross spread on
lubricants
|
(1,239)
|
|
(734)
|
|
|
Gross spread on
marine fuel
|
70,371
|
|
74,334
|
|
|
|
|
|
|
|
Sales volume of
marine fuel (metric tons)
|
2,915,450
|
|
4,212,636
|
|
|
|
|
|
|
|
Gross spread per
metric ton of marine
fuel sold (U.S.
dollars)
|
24.1
|
|
17.6
|
|
|
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 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,
Panama, 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, 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.
|
First Quarter 2016 Dividend Announcement
On
May 23, 2016, the Company's Board of
Directors declared a first quarter 2016 dividend of $0.02 per share payable on June 21, 2016 to shareholders of record as of
June 7, 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 Wednesday,
May 25th, 2016 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 (888) 438-5491 (for U.S.-based callers) or
(719) 325-2428 (for international callers) and enter the passcode:
6450144.
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 6450144 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 33 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-2016-financial-results-300274242.html
SOURCE Aegean Marine Petroleum Network Inc.