Aegean Marine Petroleum Network Inc. has reported a net loss for the three months ended September 30, 2014 of $4.3 million, or $0.09 basic and diluted loss per share, compared to a net income of $7.3 million, or $0.16 basic and diluted earnings per share, during the corresponding period last year.
Net income attributable to Aegean shareholders excluding a non-cash loss from the sale of non-core assets was $9.4 million, or $0.20 basic and diluted earnings per share.
Total revenues for the three-month period rose by $207.7 million, or 13.0%, to $1,809.7 million compared to $1,602.0 million the previous year.
Sales of marine petroleum products increased by $201.1 million, or 12.6%, to $1,791.3 million compared to $1,590.2 million during the same period in 2013.
Gross profit, which equals total revenue less directly attributable cost of revenue, was higher by $11.8 million, or 16.7%, to $82.6 million, up from $70.8 million in 2013.
The volume of marine fuel sold between July and September increased by 462,425 tonnes, or 18.5%, to 2,958,882 metric tonnes compared to 2,496,457 metric tonnes last year.
Operating income for the third quarter of 2014, adjusted for the sale of non-core assets, increased to $18.7 million, up from $12.4 million in 2013.
Operating expenses rose by $19.3 million, or 33.0%, to $77.7 million, compared to $58.4 million during the same period in 2013.
Commenting on the results,
E. Nikolas Tavlarios, President of Aegean Marine Petroleum Network, said: "We believe our third quarter results demonstrate the strong, sustainable growth drivers we have in place to deliver long-term growth and profitability. We have a unique business model that not only allows Aegean to grow profitability despite macro headwinds and mitigate industry risks, but also allows us to pursue new pathways to expand our business. Over the past year, we have successfully integrated our U.S. East Coast bunkering business and just recently, we completed our Fujairah storage facility, which we expect to begin contributing to our financial results in the first quarter of 2015. We will continue to look for opportunities to position Aegean to deliver long-term growth for the benefit of our shareholders.
"Despite challenges that others in our industry may be facing, we continue to take decisive actions to position Aegean Marine for success. Looking ahead, we believe 2015 may be a landmark year for Aegean as we begin to realize the full benefit of the investments we have made in our U.S. business and Fujairah storage facility. We are building considerable momentum across our businesses and are excited about the many opportunities to continue advancing our track record of shareholder value creation."
Liquidity and Capital Resources
Net cash provided by operating activities was $54.5 million for the three months ended September 30, 2014. Net income, as adjusted for non-cash items was $16.8 million for the period.
Net cash provided by investing activities was $13.2 million, mainly due to net proceeds from the sale of vessels. Net cash used in financing activities was $54.7 million, mainly used in the reduction of short-term borrowings.
As of September 30, 2014, Aegean had cash and cash equivalents of $117.6 million and working capital of $226.6 million. Non-cash working capital, or working capital excluding cash and debt, was $606.9 million.
As of September 30, 2014, the company had $689.6 million in available liquidity, which includes unrestricted cash and cash equivalents of $117.6 million and available undrawn amounts under the company's working capital facilities of $572.0 million, to finance working capital requirements.
The basic and diluted weighted average number of common shares outstanding for the three months ended September 30, 2014 were 46,318,687. The basic and diluted weighted average number of common shares outstanding were 45,681,518.
Spyros Gianniotis, Aegean's Chief Financial Officer, remarked: "Our differentiated business model continues to distinguish our company from the competitive landscape and generate strong financial results. Our operating strategy remains focused on maintaining a lean and flexible infrastructure, which we have achieved through the ongoing divestiture of older, non-core vessels and the streamlining of expenses.
"We are also committed to using our balance sheet to return cash to our shareholders and have recently doubled our quarterly dividend and authorized a new $20 million share repurchase program. I would like to thank our dedicated employees who have been instrumental in building a solid foundation for our company and continue to focus on delivering profitable growth for our shareholders."
