Aegean Marine Petroleum Network Inc. (the “Company” or “Aegean”)
(NYSE:ANW), a leading international marine fuel logistics company,
today announced that it expects to report a net loss of
approximately $28.2 million, or a loss of $0.69 per share, for the
fourth quarter of 2017 (subject to final year-end audit). The
fourth quarter of 2017 was impacted by approximately $14.5 million
of non-recurring charges that impeded the Company’s performance,
including the following:
- $4.5 million in cash charges related to legal, tax and advisory
fees; and
- $10.0 million in non-cash charges related to tax and accounting
changes, currency translation, non-cash severance, write-offs
related to the Company’s closure in Singapore and the loss on the
sale of a vessel.
The fourth quarter of 2017 was also impacted by
approximately $12 million of losses as a result of the Company’s
first in, first out (FIFO) reporting method of inventory cost that
created a mismatch when compared to the mark-to-market of the
Company’s respective hedges at December 31, 2017. This loss was
recovered in January 2018 when inventory was sold at market prices
(and not at cost) and the hedges were closed at market.
In addition, Aegean continues to take proactive
steps to cut costs and offset the competitive operating environment
that persisted throughout 2017. Among other recent actions, the
Company has:
- ceased operating its physical supply business in Singapore,
where margins were unsupportive of profitable business;
- recalibrated its West Coast U.S. storage footprint to better
fit the ongoing business and lower overhead;
- reduced volumes and focused on more profitable businesses in
the Fujairah market;
- secured contract cover for the majority of the Company’s clean
products tanks in the Fujairah storage facility; and
- continued the active management of our vessel fleet with a
dynamic chartering program, including the reactivation of one
vessel from hot lay-up and placement of one more vessel in cold
lay-up, thereby increasing the total number of vessels in cold
lay-up to five.
Jonathan McIlroy, Aegean’s President, commented,
“Despite what has continued to be a challenging period in our core
business, I am proud of the definitive action our management team
has taken to offset market weakness. Our expected fourth quarter
headline results do not tell the full story of the cost cutting and
bold steps we have taken—such as ceasing our physical supply
business in Singapore during the quarter. While business was slower
to come back in the wake of third quarter’s severe hurricane season
and refinery outages in Mexico, our core business showed signs of
modest improvement from third quarter’s results. 2018 is likely to
be another tough year for our core business, but Aegean is amidst a
transformation that we firmly believe will unlock significant value
for all shareholders over time.”
Acquisition of H.E.C.
Europe Limited and Related Conference
Call
Earlier today the Company announced that it has
entered into a definitive agreement to acquire all of the
outstanding share capital of H.E.C. Europe Limited (“H.E.C.”), the
parent company of Hellenic Environmental Center S.A. and a group of
companies that together provide global port reception facilities
services (the “HEC Group”). For more information on this
acquisition, including the details for accessing the related
conference call that will take place tomorrow, Wednesday, February
21, 2018 at 10:00 A.M. Eastern Time, please refer to the Company’s
press release issued earlier today.
Timing of Earnings
The Company plans to release its results for the
fourth quarter of 2017 on Wednesday, March 7, 2018, after the close
of market trading. The Company will hold a conference call during
which it will discuss fourth quarter results in more detail on
Thursday, March 8, 2018, at 8:30 A.M. Eastern Time.
Earnings Conference Call
Details
Participants should dial into the call 10
minutes before the scheduled time using the following numbers: +1
(866) 819-7111 (from the U.S.), 0(800) 953-0329 (from the U.K.) or
(+44) (0) 1452 542 301 (Standard International Dial In). Please
request "Aegean" from the operator.
A telephonic replay of the conference call will
be available until Thursday, March 15, 2018. The United States
replay number is +1 (866) 247-4222; from the U.K. 0(800) 953-1533;
the standard international replay number is (+44) (0) 1452 550 000
and the access code required for the replay is: 88442018.
Live Audio Webcast and
Slides
In parallel with the conference call, there will
also be a live audio webcast as well as slides for use with the
conference call. These can be accessed, and will be archived, on
the Investor Relations section of the Company’s website at
http://aegeanmarine.gcs-web.com/events-and-presentations/events.
Participants in the live webcast should register on the website
approximately 10 minutes prior to the start of the call.
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 30 markets and a team of professionals ready to serve
its customers wherever they are around the globe. For
additional information please visit: www.ampni.com
About H.E.C.
The HEC Group is an environmental company active
in the treatment of maritime and offshore waste, using both
chemical and mechanical technologies, in order to support vessel
and terminal operators, as well as various governmental and
regulatory bodies and port authorities. The vision of the HEC Group
is to create a dynamic global network (Global Green Ports) that
will become one of the largest international reception facilities
networks worldwide. H.E.C., through its affiliates, provides its
services to some of the largest international shipping and oil and
gas companies. The HEC Group operates in a highly regulated and
legislation driven market. Treatment of marine waste is mandatory
with regulations applying to all vessels prohibiting the dumping of
vessel-generated waste at sea. The waste treatment process takes
place both in the HEC Group’s modern land-based facilities and in
their floating facilities.
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 “will,”
“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, Company management’s
examination of historical operating trends, data contained in the
Company’s records and other data available from third parties.
Although the Company believes that these assumptions were
reasonable when made, because these assumptions are inherently
subject to significant uncertainties and contingencies that are
difficult or impossible to predict and are beyond the Company’s
control, the Company cannot assure you that it will achieve or
accomplish these expectations, beliefs or projections.
In addition to these important factors, other
important factors that, in the Company's view, could cause actual
results to differ materially from those discussed in the
forward-looking statements include the Company’s ability to
successfully complete the proposed acquisition of H.E.C. on
anticipated terms and timing, unforeseen liabilities, future
capital expenditures, revenues, expenses, earnings, synergies,
economic performance, indebtedness, financial condition, losses,
future prospects, business and management strategies for the
management, expansion and growth of the new combined company’s
operations and other conditions to the completion of the
acquisition, risks relating to the integration of H.E.C.’s
operations and the possibility that the anticipated synergies and
other benefits of the proposed acquisition will not be realized or
will not be realized within the expected timeframe, the outcome of
any legal proceedings related to the acquisition, the Company's
ability to manage growth, the Company's ability to maintain its
business in light of its proposed business and location expansion
or other changes in its business, the Company's ability to obtain
double hull secondhand bunkering tankers, the outcome of legal, tax
or regulatory proceedings to which the Company may become a party,
adverse conditions in the shipping or the marine fuel supply
industries, the Company's ability to retain its 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, the Company's ability to collect accounts receivable,
changes in the political, economic or regulatory conditions in the
markets in which the Company operates, and the world in general,
the Company's failure to hedge certain financial risks associated
with its business, the Company's ability to maintain its current
tax treatments and its failure to comply with restrictions in its
credit agreements and other factors. Please see the Company's
filings with the U.S. Securities and Exchange Commission for a more
complete discussion of these and other risks and uncertainties.
CONTACTS:
CompanyAegean Marine Petroleum
Network Inc.Tel. +1-212-430-1098Email: investor@ampni.com
Investor Relations / Media
AdvisorNicolas Bornozis / Daniela GuerreroCapital Link,
Inc.Tel. +1-212-661-7566Email: aegean@capitallink.com