Aegean Marine Petroleum Network Inc. Announces Acquisition of Marine Fuel Logistics Company
Expands Global Network of Marine Fuel Service Centers into Northern Europe;
Company Acquires Two Bunkering Tankers
PIRAEUS, Greece, Oct. 10 /PRNewswire-FirstCall/ -- Aegean Marine Petroleum Network Inc. (NYSE: ANW), an international marine fuel logistics company that markets and physically supplies refined marine fuel and lubricants to ships in port and at sea, today announced that it has acquired Bunkers at Sea, a Belgium-based marketer and independent physical supplier of marine fuel to vessels in port and at sea. Concurrent with this acquisition, Aegean purchased the Sara, a 1990-built and 2003-upgraded 7,233 double-hull bunkering tanker, and the Vera, a 1985-built 2,642 single-hull bunkering tanker, which are both operated by Bunkers at Sea. As one of the only offshore suppliers in Northern Europe, Bunkers at Sea serves approximately 45 ports located throughout the region, including the North and Irish Seas, the French Atlantic, the English Channel and St. George Channel. In 2006, the company recorded total marine fuel sales volumes of more than 325,000 metric tons utilizing its flexible operation to rapidly deploy refined marine fuel across an extensive and fragmented market with varying demand patterns. In addition to the Sara and the Vera, Aegean intends to deploy the Aegean Princess, a 1991-built 7,030 dwt double-hull bunkering tanker, to Northern Europe. E. Nikolas Tavlarios, President, commented, "The strategic acquisition of Bunkers at Sea expands our global network for the physical supply of marine fuel and provides immediate access to the core Northwest European market, resulting in further expansion opportunities. In addition to establishing a presence in this broad geographical region, the company's high-quality operations and sophisticated logistics for the delivery of marine fuel provide an ideal fit for Aegean. Our plan is to drive sales volumes throughout Northern Europe by operating three bunkering tankers as we take advantage of the significant number of underserved ports located in this vast commercial ship market and leverage our expanded customer base." Bunkers at Sea will operate as a wholly owned subsidiary of Aegean and maintain its service center, which includes all marketing and operational functions, based in Antwerp, Belgium. The office, which will be expanded to increase Aegean's presence in Northern Europe, will be led by the co-founders of Bunkers at Sea, Jack Doornbos and Reginald Robyn. "We are very excited about the opportunities created by joining Aegean's global service center network," said Mr. Doornbos. "Aegean has established itself as the leading independent full-service provider of marine fuel services, and working with the company will increase our ability to strengthen and grow our position in the region." Ziad Nakhleh, Chief Financial Officer, stated, "The acquisition of Bunkers at Sea, which has been financed through our existing capital structure, meets our strict long-term return criteria. Moreover, we believe this acquisition will be seamlessly integrated into our existing operating structure and immediately accretive to earnings and cash flow. Our strong financial position has enabled Aegean to act decisively in acquiring Bunkers at Sea and capitalize on the attractive opportunities in Northern Europe for the benefit of our shareholders." 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. As a physical supplier, the Company purchases marine fuel from refineries, major oil producers and other sources. Through its service centers in Greece, Gibraltar, Singapore, Jamaica, the United Arab Emirates and West Africa, the Company sells and delivers these fuels to a diverse group of ocean-going and coastal ship operators and marine fuel traders, brokers and other users. 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.
SOURCE Aegean Marine Petroleum Network Inc.
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