Aegean Marine Petroleum Network Inc. today announced financial and operating results for the first quarter ended March 31st, 2014.
First Quarter Highlights
- Sales volumes of 2,705,823 metric tons.
- Gross profit of $82.9 million.
- Operating income of $15.2 million.
- Net income attributable to Aegean shareholders of $5.1 million or $0.11 basic and diluted earnings per share.
- Net income attributable to Aegean shareholders adjusted for the sale of non-core assets and vessel impairment charge was $8.7 million or $0.18 basic and diluted earnings per share.
- EBITDA of $23.5 million.
- EBITDA adjusted for the sale of non-core assets and vessel impairment charge was $27.0 million.
- Completed the sale of two older, non-core vessels.
E. Nikolas Tavlarios, President of Aegean Marine Petroleum Network, commented, “During the quarter Aegean continued to build upon the momentum we established across our business as we extended our track record of profitability and growth. The sustainable growth drivers we have put in place enabled our team to continue delivering positive results despite persistent industry headwinds.
Mr. Tavlarios continued, “With Aegean’s U.S. East Coast operations successfully integrated, we have strengthened our industry leadership and global market share. We remain focused on diversifying our geographical presence and increasing asset utilization both through the expected introduction of our new Fujairah storage facility in the second half of 2014 and the potential addition of new service centers. In addition, with the sale of two older, non-core vessels, Aegean continued to streamline its expense structure and generate sustainable results. We are excited about our opportunities to build significant shareholder value over the long-term.”
The Company achieved net income attributable to Aegean shareholders for the three months ended March 31, 2014 of $5.1 million, or $0.11 basic diluted earnings per share. Net income attributable to Aegean shareholders excluding a non-cash loss from the sale of non-core assets and vessel impairment charge was $8.7 million or $0.18 basic and diluted earnings per share. For the three months ended March 31, 2013, the Company recorded net income attributable to Aegean shareholders of $7.2 million, or $0.15 basic and diluted earnings per share. Net income attributable to Aegean shareholders excluding a non-cash loss from the sale of non core vessels was $6.3 million or $0.13 basic and diluted earnings per share.
Total revenues for the three months ended March 31, 2014, increased by 7.9% to $1,694.4 million compared with $1,570.5 million reported for the same period in 2013. For the three months ended March 31, 2014, sales of marine petroleum products increased by 7.4% to $1,673.7 million compared with $1,558.4 million for the same period in 2013. Gross profit, which equals total revenue less directly attributable cost of revenue increased by 17.3% to $82.9 million in the first quarter of 2014 compared with $70.7 million in the same period in 2013.
For the three months ended March 31, 2014, the volume of marine fuel sold by the Company increased by 14.3% to 2,705,823 metric tons compared with 2,367,077 metric tons in the same period in 2013.
Operating income adjusted for the sale of non-core assets and vessel impairment charge for the first quarter of 2014 amounted to $18.8 million compared to $12.4 million for the same period in 2013. Operating expenses increased by $5.8 million, or 10.0%, to $64.1 million for the three months ended March 31, 2014, compared with $58.3 million for the same period in 2013.
Liquidity and Capital Resources
Net cash used in operating activities was $32.5 million for the three months ended March 31, 2014. Net income, as adjusted for non-cash items (as defined in Note 9) was $19.5 million for the period.
Net cash used in investing activities was $14.2 million for the three months ended March 31, 2014, mainly due to advances for other fixed assets under construction and the acquisition of a second hand vessel.
Net cash provided by financing activities was $99.1 million for the three months ended March 31, 2014, mainly used to finance our activities in the US business.
As of March 31, 2014, the Company had cash and cash equivalents of $115.0 million and working capital of $239.9 million. Non-cash working capital, or working capital excluding cash and debt, was $595.2 million.
As of March 31, 2014, the Company had $648.2 million in available liquidity, which includes unrestricted cash and cash equivalents of $115.0 million and available undrawn amounts under the Company’s working capital facilities of $533.2 million, to finance working capital requirements.
The weighted average basic and diluted shares outstanding for the three months ended March 31, 2014 were 46,139,764. The weighted average basic and diluted shares outstanding for the three months ended March 31, 2013 were 45,660,166 respectively. Spyros Gianniotis, Aegean’s Chief Financial Officer, stated, “Our strong financial position and dynamic business model continues to distinguish Aegean from the competitive landscape. In the first quarter, we continued to streamline expenses and increase our earnings potential by targeting only the most profitable business. We have built a solid foundation for profitable growth and are confident that Aegean will remain on a positive trajectory as the markets emerge from the current shipping cycle. Regardless of an improvement in our operating environment, Aegean’s business model has proved to be immune to market fluctuations and is built to successfully deliver financial results.”
First Quarter 2014 Dividend Announcement
On May 21, 2014, the Company’s Board of Directors declared a first quarter 2014 dividend of $0.01 per share payable on June 18, 2014 to shareholders of record as of June 4, 2014. 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, May 22, 2014 at 8:30 a.m. Eastern Time, to discuss its first quarter results.
SOURCE Aegean Marine Petroleum Network Inc.
