Aegean Marine Petroleum Network Inc. Announces Third Quarter 2011 Financial Results

PIRAEUS, Greece, Nov. 9, 2011 /PRNewswire/ -- Aegean Marine Petroleum Network Inc. (NYSE: ANW) ("Aegean" or the "Company") today announced financial and operating results for the third quarter ended September 30, 2011.

Third Quarter Highlights

• Recorded sales volumes of 2,715,439 metric tons.  
• Expanded net revenues to $77.2 million.
• Recorded adjusted operating income of $13.8 million.
  • Operating income including a non-cash loss from the sale of a non-core vessel was $5.2 million.
• Reported net loss of $3.3 million or $0.07 basic and diluted earnings per share which included a book loss of $8.6 million on the sale of a non-core asset.
  • Net income adjusted for the book loss was $5.3 million or $0.11 basic and diluted earnings per share.
• Reported adjusted EBITDA (as defined in Note 1) of $22.4 million.
  • EBITDA including non-cash loss was $13.7 million in Q3 2011.
• Commenced both physical supply and storage operations in Panama.
• Took delivery of bunker tanker newbuilding.
• Commenced 2 million share repurchase program.

The Company recorded net income for the three months ended September 30, 2011 of $5.3 million, or $0.11 basic and diluted earnings per share. On a GAAP basis, and including an $8.6 million non-cash loss from sale of a 1983-built floating storage tanker, the company reported a net loss of $3.3 million or $0.07 basic and diluted loss per share.  For purposes of comparison, the Company reported net income of $4.6 million, or $0.10 basic and diluted earnings per share, for the three months ended September 30, 2010. The weighted average basic and diluted shares outstanding for the three months ended September 30, 2011 were 45,992,860. The weighted average basic and diluted shares outstanding for the three months ended September 30, 2010 were 46,187,311 and 46,547,367 respectively.

Total revenues for the three months ended September 30, 2011, increased by 37.4% to $1,838.3 million compared to $1,337.5 million for the same period in 2010. For the three months ended September 30, 2011, sales of marine petroleum products increased by 36.9% to $1,824.9 million compared to $1,333.4 million for the year-earlier period. Net revenue, which equals total revenue less cost of goods sold and cargo transportation expenses, increased by 27.6% to $77.2 million in the third quarter of 2011 compared to $60.5 million in the year-earlier period.

For the three months ended September 30, 2011, the volume of marine fuel sold decreased by 5.4% to 2,715,439 metric tons as compared to 2,871,711 metric tons in the year-earlier period.

Adjusted operating income for the third quarter of 2011 increased by 40.8%, to $13.8 million as compared to $9.8 million for the same period in 2010. Operating income including a one-time loss on sale of vessel was $5.2 million.  Operating expenses, excluding the cost of fuel and cargo transportation costs, increased by $21.3 million, or 42.0%, to $72.0 million for the three months ended September 30, 2011 as compared to $50.7 million for the same period in 2010. This increase was principally due to an expanded logistics infrastructure and the loss on sale of vessel during the third quarter of 2011 compared to the third quarter of 2010.

E. Nikolas Tavlarios, President, commented, "During the third quarter, we continued to achieve notable progress implementing our strategy to enhance Aegean's operational and financial performance. Consistent with our goal to strengthen Aegean's global presence, we commenced physical supply and onshore storage operations in Panama, expanding our global presence to 19 markets covering nearly 60 ports. We also maintained our focus on improving Aegean's cost structure by divesting additional non-core assets as we remain committed to increasing operating efficiencies. While overall market conditions remain challenging, we believe our growing integrated marine fuel logistics chain combined with a strong financial foundation positions Aegean well to continue to meet the positive worldwide demand for its comprehensive services and drive future earnings growth."

Liquidity and Capital Resources

As of September 30, 2011, the Company had cash and cash equivalents of $37.6 million and working capital of $211.6 million. Non-cash working capital, or working capital excluding cash and debt, was $527.2 million as of September 30, 2011.  

Net cash used in operating activities was $32.6 million for the three months ended September 30, 2011.  Net income, as adjusted for non-cash items, was $12.9 million for the period.  

Net cash used in investing activities was $5.6 million for the three months ended September 30, 2011, mainly due to the advances for vessels and other fixed assets under construction but partly offset by the proceeds from the sale of a floating storage facility.

Net cash provided by financing activities was $34.2 million for the three months ended September 30, 2011, primarily driven by the increase in short-term borrowings.

As of September 30, 2011, the Company had approximately $217.0 million in available liquidity, which includes unrestricted cash and cash equivalents and available undrawn amounts under the Company's short-term working capital facilities, to finance working capital requirements.  Furthermore, as of September 30, 2011, the Company had approximately $2.1 million available under its secured term loans to finance the construction of its new double-hull bunkering tankers.

Spyros Gianniotis, Chief Financial Officer, stated, "Aegean's substantial access to capital serves as a core differentiator, enabling the Company to meet the significant working capital requirements of the marine fuel supply industry and procure large quantities of supply at a volume-based discount. By recently renewing our credit facility with a global financial institution, we have increased the aggregate amount of Aegean's working capital credit facilities to more than $940 million. Our success in securing new bank debt under favorable terms in a challenging market environment demonstrates the continued confidence our lending group has in Aegean's future prospects as we further expand our global full-service platform."

Summary Consolidated Financial and Other Data (Unaudited)

Summary Consolidated Financial and Other Data (Unaudited)

Third Quarter 2011 Dividend Announcement

On November 9, 2011, the Company's Board of Directors declared a third quarter 2011 dividend of $0.01 per share payable on December 8, 2011, to shareholders of record as of November 24, 2011. 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 Thursday, November 10, 2011 at 8:30 a.m. Eastern Time, to discuss its third 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) 634-7543 (for U.S.-based callers) or (719) 457-2652 (for international callers) and enter the passcode: 6349660.

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 November 24, 2011 by dialing (888) 203-1112 (for U.S.-based callers) or (719) 457-0820 (for international callers) and enter the passcode: 6349660.

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 19 markets, including Vancouver, Montreal, Mexico, Jamaica, Trinidad and Tobago, West Africa, Gibraltar, U.K., Northern Europe, Piraeus, Patras, the United Arab Emirates, Singapore, Morocco, the Antwerp-Rotterdam-Amsterdam (ARA) region, Las Palmas, Tenerife, Cape Verde and Panama.

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.