Tue 18 Aug 2015, 08:53 GMT

Aegean posts 23.3% decline in Q2 net income


Volumes sold rose by 18.5%, but revenues were down by 29.8% 'due to the drop in the price of oil'.



Bunker supply firm Aegean Marine Petroleum Network Inc. reports that net income attributable to shareholders declined by US$2,175 million, or 23.3 percent, during the second quarter of 2015 compared with the corresponding period last year.

Net income attributable for the three months ended June 30, 2015 was $7.148 million, or $0.15 basic and diluted earnings per share. During the prior-year period, the company had recorded a net income of $9.323 million, or $0.20 basic and diluted earnings per share.

Total revenues decreased by 29.8 percent to $1,207.7 million compared with $1,720.2 million in 2014. This was said to be "due to the drop in the price of oil".

Sales of marine petroleum products decreased by 30.2 percent to $1,189.5 million compared with $1,705.2 million last year. Gross profit, which equals total revenue less directly attributable cost of revenue, fell by 7.1 percent to $78.5 million compared with $84.5 million in the same 3-month period in 2014.

The volume of marine fuel sold by the company increased by 18.5 percent to 3,150,950 metric tonnes compared with 2,659,620 metric tonnes in the same period in 2014.

Operating income for the second quarter of 2015 amounted to $14.8 million compared to $19.3 million last year. Operating expenses decreased by $1.5million, or 2.3 percent, to $63.7 million, compared with $65.2 million for the same period in 2014.

Liquidity and Capital Resources

Net cash used in operating activities was $59.3 million for the three months ended June 30. Net income, as adjusted for non-cash items, was $29.0 million for the period.

Net cash used in investing activities was $4.8 million, mainly for the construction of fixed assets. Net cash used in financing activities was $11.8 million, mainly for the repayment of long-term debt.

As of June 30, 2015, the company had cash and cash equivalents of $42.2 million and working capital of $267.7 million. Non-cash working capital, or working capital excluding cash and debt, was $558.1 million.

As of June 30, 2015, Aegean had $891.8 million in available liquidity, which includes unrestricted cash and cash equivalents of $42.2 million and available undrawn amounts under the company's working capital facilities of $849.6 million, to finance working capital requirements.

First six months of 2015

During the first six months of 2015, Aegean recorded a net income attributable to shareholders of $19.372 million compared with $14.419 million last year, representing an increase of $4.953 million, or 34.35 percent.

Total revenues were lower by $1,191.768 million, or 34.9 percent, at $2,222.810 million, compared with $3,414.578 million last year.

Sales volumes, however, were higher by 700,957 tonnes, or 13.1 percent, to 6,066,400 tonnes, up from 5,365,443 tonnes during the first six months of 2014.

Commenting on the overall results, Spyros Gianniotis, Aegean's Chief Financial Officer, stated: "We delivered another quarter of profitability despite market headwinds impacting the business. We are pleased with the recent extension of our global and U.S. credit facilities, with improvements in pricing. Maintaining financial flexibility is the cornerstone of our success. With more than $1.8 billion in working capital credit facilities, we have a strong excellent balance sheet that can support continued profitability over the long-term. Given our financial strengthen, we have been able to move quickly to realize accretive growth opportunities and profitably grow the business, and remain focused on achieving this objective. Looking ahead, we are confident in our ability to continue successfully executing our strategy and drive profitability while returning capital to shareholders."

E. Nikolas Tavlarios, President of Aegean Marine Petroleum Network, remarked: "Aegean Marine has built a strong, global platform that has delivered solid returns in a variety of market conditions. While we faced headwinds during the quarter, we are entering the second half of 2015 with several growth drivers in place and we expect to further improve our financial performance. Our Fujairah facility is operating at strong utilization levels, and our expanded global operations position the Company for continued growth, success and value creation.

"In particular, we are pleased that we have a unique and dynamic business model and strong balance sheet to support strategic expansion opportunities. As the industry improves, Aegean Marine is poised to benefit from our diversification and recent expansion into new markets. We remain focused on advancing our position as a leading fuel supplier, enhancing our network by opportunistically expanding our footprint, and ensuring that we meet and exceed the needs of our customers around the world."


United LNG I bunker vessel alongside Blue Aspire vessel. Titan charters 8,000-cbm LNG bunker vessel for ZARA region operations  

United LNG I to deliver LNG and bio-LNG across Amsterdam, Rotterdam, Antwerp and Zeebrugge ports.

Flag of Mauritania. Peninsula begins physical bunker supply operations in Mauritania  

Marine fuel supplier operating two barges following licence award from the Mauritanian National Hydrocarbons Commission.

X-Press Cassiopeia vessel. PuriFire Energy signs biomethanol supply deal with X-Press Feeders  

Letter of intent covers up to 15,000 tonnes annually for feeder carrier’s fleet.

Alan Yang and Yujin Kang, Flex Commodities. FLEX Commodities opens Seoul office with new Korea leadership team  

Dubai-based trader establishes South Korea presence with appointments of Alan Yang and Yujin Kang.

Eng. Sulaiman Ali Al Hadhrami, O Bunkering. O Bunkering appoints Sulaiman Alhadhrami as chief executive officer  

Omani bunker supplier names new CEO to lead growth and expansion in the maritime sector.

Shore power system. Zhoushan expands shore power infrastructure as part of emissions reduction drive  

Chinese port city reports 30% increase in shore power usage across terminals and berths.

Hamburg Express vessel. Hapag-Lloyd and Kuehne+Nagel partner on biofuel initiative for Asia-Europe trade  

Agreement covers 3,300-teu using waste-based biofuels, targeting a 2,979-tonne CO₂e reduction in 2026.

Rendering of a tug vessel. Berg Propulsion to supply electric propulsion systems for India’s green tugs  

Swedish firm to provide thrusters and electrical integration for two 60-tonne bollard pull battery-electric vessels.

Singapore skyline with Merlion and central business district. World Fuel seeks marine fuel supply executive in Singapore  

Role to manage supplier relationships and source marine fuel across South-East Asia and Australia-New Zealand.

OOCL Wisdom naming ceremony. OOCL names first methanol dual-fuel vessel  

Orient Overseas Container Line christens OOCL Wisdom, dubbed the world’s largest methanol dual-fuel container vessel.