Tue 18 Aug 2015 08:53

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."


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