bms arcadia gac17
globalseaways17 

ΝΑΥΤΙΛΙΑ

Εκτύπωση

Aegean Marine Petroleum Network Inc. reiterates financial and operational benefits of HEC transaction

10 Μαρτίου 2018.

aegeanpetrolm3Aegean Marine Petroleum Network Inc. announced financial and operating results for the fourth quarter ended December 31, 2017.

Fourth Quarter Financial Overview

 

Recorded sales volumes of 3,511,023 metric tons.

Recorded gross profit of $59.8 million.

Recorded operating loss of $16.8 million.

Recorded net loss attributable to Aegean shareholders of $28.6 million or $0.70 basic and diluted losses per share (adjusted net loss was $19.6 million or $0.48 basic and diluted losses per share).

Recorded negative EBITDA of $8.8 million (adjusted negative EBITDA of $1.4 million).

Reduced quarterly dividend payment to $0.01 per share.

 

Management Commentary

 

Jonathan McIlroy, Aegean’s President commented, “We continue to operate in a highly competitive market that remains under significant pressure, which is reflected in our fourth quarter 2017 and full year results. During this period, we have focused on the consistent implementation of our optimization strategy, while simultaneously pursuing new business opportunities to create value and position Aegean for long-term success.

“With uncertainty expected to persist, our board of directors and management took steps to enhance our expense and asset optimization efforts while also enabling Aegean to return to profitable and sustainable growth. The Board unanimously determined that the acquisition of all the outstanding share capital of H.E.C. Europe Limited (“HEC”), a complementary business with high margins, creates a global “one-stop-shop” for the shipping industry through integrating bunkering and ship waste management. The Board has determined that this transaction is in the best interest of Aegean shareholders and we are confident that with HEC, we can achieve growth significantly greater than what either company could achieve on a standalone basis.”

Aegean’s Q4 2017 loss of $28.6 million includes roughly $15.3 million of non-recurring expense items including $11.0 million of non-cash charges. In addition, the Company experienced approximately $12 million of hedging losses during the fourth quarter as a result of the Company’s first in, first out (FIFO) reporting method of inventory cost. This loss was recovered in January 2018 when inventory was sold at market prices, and the hedges were closed. Adjusting for all these non-recurring items, our net loss would have been $1.3 million. At the end of December 2017, the Company’s cash position was $71.1 million and its net debt was $52.1 million.

In the fourth quarter the Company announced its intention to cease operations as a physical supplier in Singapore. The Company delivered its last physical cargo in Singapore in January of 2018. In addition, Aegean has downsized operations in Fujairah and recalibrated its U.S. West Coast footprint while expanding in Germany, where the Company established a presence in Kiel. Aegean continues to seek new opportunities to replace volumes ceded by the group in both Singapore and Fujairah by seeking volume growth elsewhere in the network where margins are more sustainable. Key elements of this strategy are the anticipated expansion in volumes in the Amsterdam-Rotterdam-Antwerp region, Germany and Savannah on the East Coast of the US being good examples.

Through a combination of fleet and storage rationalization and G&A reduction, the Company also achieved and identified roughly $25 million of annual cost reductions and expects to reach $30 million in cost reductions over time.

The Company has also sought to improve its contract base with significant customers, including renegotiating a few key contracts in core stations at higher margins in late 2017 for the entirety of the 2018 trading year, with some contracts extended into 2019.

Spyros Gianniotis, Aegean’s Chief Financial Officer, stated, “Our decision to cease operations in Singapore and downsize operations in Fujairah in order to focus on higher return areas contributed to a 15.2% decrease in sales volume when compared to the prior quarter. Gross spread per metric ton improved by 6.2% from the prior quarter, which reflects our focus on repositioning our portfolio towards higher margin business. Despite recent progress in gross spread improvement, our results are still significantly below the $21.10 level of Q4 2016, indicating that market pressures have not abated. We continue to take steps to right size the business and our financial profile through cost reduction initiatives, and reduced net operating expenses excluding non-recurring items by $2.7 million year-on-year.

“While our recent results show the significant pressures on the markets in which we operate, we remain confident that we are taking the right steps to position Aegean for long-term growth. The acquisition of HEC diversifies the Company’s revenue streams, opens up growth opportunities in the environmental services market and creates potential for synergies within our existing network. Once completed, we expect the addition of HEC to be immediately accretive to our operating and financial results and the combined company to accelerate growth moving forward. We will continue our focus on reducing cost, rationalizing and optimizing our presence in key operating hubs and on maximizing asset utilization in order to create value for Aegean shareholders.”

 

Financial Results

 

Revenue – The Company reported total revenue of $1,365.2 million for the fourth quarter of 2017, an increase of 14.1% compared to the same period in 2016, primarily due to the increase in oil prices. Voyage and other revenues decreased to $16.7 million or by 18.9% compared to the same period in 2016.

Gross Profit – Gross Profit, which equals total revenue less directly attributable cost of revenue, decreased by 34.1% to $59.8 million in the fourth quarter of 2017 compared to $90.8 million in the same period in 2016.

Operating Expense – Operating expense for the quarter was $76.6 million for the fourth quarter of 2017, an increase of $10.2 million or 15.4% compared to the same period in prior year.

Operating Loss – Operating loss for the fourth quarter of 2017 adjusted for the sale of non-core assets, vessel impairment charge and the accelerated amortization of restricted shares was $9.3 million, a decrease of 138.1% compared to the same period in the prior year.

Net Loss – Net loss attributable to Aegean shareholders adjusted for the sale of non-core assets, vessel impairment charge and the accelerated amortization of restricted shares and deferred financing fees was $19.6 million, or $0.48 basic and diluted losses per share, a decrease of $35.6 million or 222.5% compared to the same period in 2016.

 

Operational Metrics

 

Sales Volume – For the three months ended December 31, 2017, the Company reported marine fuel sales volumes of 3,511,023 metric tons, a decrease of 11.2% compared to the same period in 2016.

Gross Spread Per Metric Ton of Marine Fuel Sold – For the three months ended December 31, 2017, the Company reported gross spread per metric ton of marine fuel sold on an aggregate basis of $15.5. Gross spread per metric ton of marine fuel sold in the prior year period was $21.1.

 

Liquidity and Capital Resources

 

Net cash used in operating activities was $120.3 million for the three months ended December 31, 2017, primarily due to the increase in oil prices.

Net cash used in investing activities was $9.0 million for the three months ended December 31, 2017, due to the purchase of Umnenga I, a floating storage facility which replaced Umnenga.

Net cash provided by financing activities was $124.6 million for the three months ended December 31, 2017.

As of December 31, 2017, the Company had cash and cash equivalents of $71.1 million. Non-cash working capital, or working capital excluding cash and debt, was $831.9 million.

As of December 31, 2017, the Company had $438.3 million of undrawn amounts under its working capital facilities and $71.1 million of unrestricted cash and cash equivalents to finance working capital requirements.

The weighted average basic and diluted shares outstanding for the three months ended December 31, 2017, was 39,199,061. The weighted average basic and diluted shares outstanding for the three months ended December 31, 2016 was 37,612,600.

 

Reduction of Dividend

 

The Company also announced that it is reducing its dividend, effective immediately to $0.01 per share. Aegean’s board of directors will re-evaluate its dividend policy following the integration of the HEC transaction.

Yiannis Papanicolaou, Chairman of the Board of Directors of Aegean added, “After extensive consideration and in light of our challenging financial results in 2017, as well as our desire to conserve capital, the board of directors of Aegean has elected to reduce the payment of our quarterly dividend to $0.01 per share, down from $0.02 per share.”

Source: Aegean Marine Petroleum Network Inc.

 

crossworldbanner

seanergybanerblue

antipollution

bv18

liberianbanner

panamanian

rstechnical

Ημερολόγιο

«  Σεπτέμβριος 2018  »
ΔΤΤΠΠΣΚ
12
3456789
10111213141516
17181920212223
24252627282930

wartsila

hellenicsw18

capitallink18

forummalta18

naftemp18

chiosnavig18

Αναζήτηση

ibiabanner