Thu 14 Aug 2014, 08:36 GMT

Aegean posts rise in Q2 net income


Net income jumps 69% as revenues and gross profit rise despite 1.2% fall in marine fuel sales volumes.



Aegean Marine Petroleum Network Inc. has posted a rise in net income of $3.8 million, or 69%, during the second quarter ended June 30, 2014.

The company achieved a net income of $9.3 million, or $0.20 basic diluted earnings per share, compared to $5.5 million, or $0.12 basic and diluted earnings per share, during the corresponding period in 2013.

Total revenues for the three months ended June 30, 2014 increased by 1.7% to $1,720.2 million compared to $1,691.8 million reported for the same period in 2013.

Sales of marine petroleum products increased by 1.4% to $1,705.2 million compared to $1,680.9 million last year.

Gross profit, which equals total revenue less directly attributable cost of revenue, increased by 21.6% to $84.5 million in the second quarter of 2014 compared to $69.5 million in 2013.

The volume of marine fuel sold by the company decreased by 1.2% to 2,659,620 metric tonnes, down from 2,693,151 metric tonnes in the prior year period.

Operating income for the second quarter of 2014 increased to $19.3 million compared to $13.2 million, adjusted for the sale of non-core assets for the same period in 2013. Operating expenses increased by $8.4 million, or 14.8%, to $65.2 million, compared to $56.8 million last year.

As of June 30, 2014, the company had cash and cash equivalents of $106.9 million and working capital of $223.4 million. Non-cash working capital, or working capital excluding cash and debt, was $644.9 million.

Aegean had $582.9 million in available liquidity, which includes unrestricted cash and cash equivalents of $106.9 million and available undrawn amounts under the Company's working capital facilities of $476.0 million, to finance working capital requirements.

Commenting on the results, E. Nikolas Tavlarios, President of Aegean Marine Petroleum Network, commented: "Our strong second quarter results extend our recent track record of profitability and growth and demonstrate that we are successfully executing our strategy despite prevailing industry headwinds. We have developed sustainable growth drivers and believe we remain well positioned to continue to consistently deliver strong results.

"During 2014, we have successfully integrated our newly acquired East Coast business, sold four non-core vessels and completed the construction of our Fujairah storage facility while continuing to deliver solid results in a challenging market. We are excited about the forthcoming commencement of storage operations in Fujairah in the second half of 2014, and believe we have additional opportunities to expand our market share. With a sound strategy in place and the proven ability to successfully execute, we are well positioned to further enhance shareholder value."

Spyros Gianniotis, Aegean's Chief Financial Officer, stated: "On the operating side, our business model has consistently proved to be resilient even in volatile market conditions and is a driver of our strong financial position, which differentiates Aegean from its competitors. We have been vigilant in streamlining expenses, optimizing our assets and enhancing the company's financial flexibility.

"Our business strategy continues to yield distinct competitive advantages that we believe will allow us to further expand our global market share and pursue profitable revenue growth opportunities. Our dedicated team has built a strong foundation for profitable growth, and we expect to continue on our positive trajectory."

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