Aegean Marine Petroleum Network Inc. Announces Fourth Quarter 2011 Financial Results
Thursday, 23 February 2012 | 00:00
Aegean Marine Petroleum Network Inc. yesterday announced financial and operating results for the fourth quarter ended December 31, 2011.The Company recorded net income for the three months ended December 31, 2011 of $6.3 million, or $0.14 basic and diluted earnings per share. For purposes of comparison, the Company reported a net loss of $12.0 million, or $0.26 basic and diluted loss per share, for the three months
ended December 31, 2010. The weighted average basic and diluted shares outstanding for the three months ended December 31, 2011 were 45,350,768. The weighted average basic and diluted shares outstanding for the three months ended December 31, 2010 were 46,197,217 and 46,141,181, respectively.
Total revenues for the three months ended December 31, 2011, increased by 19.7% to $1,740.3 million compared to $1,454.2 million for the same period in 2010. For the three months ended December 31, 2011, sales of marine petroleum products increased by 19.3% to $1,729.0 million compared to $1,449.6 million for the year-earlier period. Net revenue, which equals total revenue less cost of marine petroleum products increased by 58.1% to $81.4 million in the fourth quarter of 2011 compared to $51.5 million in the year-earlier period.
For the three months ended December 31, 2011, the volume of marine fuel sold decreased by 11.1% to 2,568,714 metric tons as compared to 2,890,940 metric tons in the year-earlier period as the Company maintained its focus on executing transactions with creditworthy counterparties.
Operating income for the fourth quarter of 2011 increased to $17.6 million as compared to a $4.6 million operating loss for the same period in 2010. Operating expenses, excluding the cost of fuel and cargo transportation costs, increased by $4.4 million, or 8.2%, to $57.8 million for the three months ended December 31, 2011 as compared to $53.4 million for the same period in 2010. This increase was principally due to an expanded logistics infrastructure.
E. Nikolas Tavlarios, President, commented, "Aegean's performance for the three months ended December 31, 2011 represents the fourth consecutive quarter of increasing profitability in a challenging market environment. Our success in steadily enhancing the Company's operational and financial results is directly attributable to the progress we have achieved to date in the execution of our business strategy outlined by management a year ago. Specifically, we significantly increased our global presence by entering three new markets in 2011, as planned, including Panama, Tenerife and Cape Verde. As we continue to pursue attractive consolidation opportunities that further strengthen Aegean's leading brand as a global independent supplier of marine fuel, we seek to enhance operating efficiencies and improve our overall cost structure."
Mr. Tavlarios added, "Going forward, we will maintain our focus on taking advantage of the positive demand for Aegean's comprehensive services and leveraging the Company's world-class platform, highlighted by global operations in 19 countries covering nearly 60 ports, extensive risk management controls, blue-chip customers, one of the largest double-hull bunkering fleets in the world, on-site blending facilities and storage capacity expected to exceed 1.5 million cubic meters. With a growing and sophisticated integrated marine fuel logistics chain, combined with substantial financial liquidity, we are in a strong position to continue to differentiate Aegean within the industry and drive future performance in 2012, and beyond."
Liquidity and Capital Resources
As of December 31, 2011, the Company had cash and cash equivalents of $68.6 million and working capital of $201.2 million. Non-cash working capital, or working capital excluding cash and debt, was $497.9 million as of December 31, 2011.
Net cash provided by operating activities was $45.5 million for the three months ended December 31, 2011. Net income, as adjusted for non-cash items, was $16.1 million for the period.
Net cash used in investing activities was $18.6 million for the three months ended December 31, 2011, mainly due to the advances for other fixed assets under construction.
Net cash provided by financing activities was $5.2 million for the three months ended December 31, 2011, primarily driven by the increase in short-term borrowings.
As of December 31, 2011, the Company had $302.5 million in available liquidity, which includes unrestricted cash and cash equivalents and available undrawn amounts under the Company's working capital facilities, to finance working capital requirements.
Spyros Gianniotis, Chief Financial Officer, stated, "Aegean's strong financial foundation continues to provide a distinct competitive advantage. With total working capital credit facilities of more than $940 million, we remain well positioned to manage volatile marine fuel prices and procure large quantities of supply at a discount relative to our competitors. We also intend to draw upon our balance sheet strength as we remain committed to further expanding our global full-service platform for the benefit of the Company and its shareholders."
Fourth Quarter 2011 Dividend Announcement
On February 22, 2012, the Company's Board of Directors declared a fourth quarter 2011 dividend of $0.01 per share payable on March 21, 2012 to shareholders of record as of March 7, 2012. 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.
Source: Aegean Marine Petroleum Network Inc.