Aegean Marine Petroleum Network Inc. (NYSE: ANW) (“Aegean” or the “Company”) announced financial and operating results for the first quarter ended March 31, 2017.
First Quarter Financial Highlights
Recorded sales volumes of 4,450,263 metric tons.
Achieved gross profit of $80.3 million.
Generated operating income of $13.9 million.
Recorded net income attributable to Aegean shareholders of $1.4 million or $0.03 basic and diluted earnings per share.
Generated EBITDA of $21.9 million.
First Quarter Operational Highlights
E. Nikolas Tavlarios, Aegean’s President, commented, “Our results in the quarter were impacted by increased competition across operations and continued challenging market dynamics. These results do not reflect the overall strength of our business or our strong track record of delivering consistent growth and stable financial results. To position Aegean for continued success, we are actively managing our business and taking decisive action to improve performance despite industry headwinds. We are controlling what we can control by shifting our strategy towards a more\ asset-light model and taking a strategic view of our operations to enhance efficiency. Consistent with our focus of actively managing our fleet, we are marketing several vessels for sale, charter, or redeployment to the highest growth areas. We are confident that these initiatives, once fully implemented, will drive improved performance and value creation.”
Revenue – The Company reported total revenue of $1.5 billion for the first quarter of 2017, an increase of 102.5% compared to the same period in 2016, primarily due to the increase in oil prices. Voyage and other revenues were, $20.0 million, approximately $1.9 million more than the same period in 2016.
Gross Profit – Gross Profit, which equals total revenue less directly attributable cost of revenue decreased by 0.7% to $80.3 million in the first quarter of 2017 compared to $80.9 million in the same period in 2016.
Operating Expense – The Company reported operating expense of $66.5 million for the first quarter of 2017, an increase of $3.9 million or 6.2% compared to the same period in prior year due mainly to higher marine fuel costs for our fleet and additional offices.
Operating Income – Operating income for the first quarter of 2017 was $13.9 million, a decrease of 4.4 million or 24.0% compared to the same period in prior year.
Net Income – Net income attributable to Aegean shareholders for the three months ended March 31, 2017 was $1.4 million, or $0.03 per basic and diluted share, a decrease of $10.4 million or 88.1% compared to the same period in 2016 due mainly to higher operating expenses and finance costs.
Sales Volume – For the three months ended March 31, 2017, the Company reported marine fuel sales volumes of 4,450,263 metric tons, an increase of 5.6% compared to the same period in 2016.
EBITDA Per Metric Ton of Marine Fuel Sold – For the three months ended March 31, 2017, the Company reported EBITDA per metric ton of marine fuel sold of $4.93. EBITDA per metric ton of marine fuel sold in the prior year period was $6.44 per metric ton.
Gross Spread Per Metric Ton of Marine Fuel Sold – For the three months ended March 31, 2017, the Company reported gross spread per metric ton of marine fuel sold on an aggregate basis of $16.3. Gross spread per metric ton of marine fuel sold in the prior year period was $17.6.
Liquidity and Capital Resources
Net cash used in operating activities was $67.1 million for the three months ended March 31, 2017 due mainly to higher sales volumes in the U.S. and Northern Europe.
Net income as adjusted for non-cash items (as defined in Note 9 below) was $3.9 million for the same period.
Net cash used in investing activities was $2.8 million for the three months ended March 31, 2017, primarily due to advances for fixed assets under construction.
Net cash provided by financing activities was $36.4 million for the three months ended March 31, 2017, primarily due to higher sales volumes.
As of March 31, 2017, the Company had cash and cash equivalents of $60.4 million and working capital of $432.4 million. Non-cash working capital, or working capital excluding cash and debt, was $708.2 million.
As of March 31, 2017, the Company had $836.5 million undrawn amounts under its working capital facilities and $60.4 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 March 31, 2017 was 37,735,380. The weighted average basic and diluted shares outstanding for the three months ended March 31, 2016 was 47,545,710.
Spyros Gianniotis, Aegean’s Chief Financial Officer, stated, “During the quarter, we maintained our financial flexibility and balance sheet strength, as we have done throughout various market conditions. To further enhance profitability, we are actively evaluating our markets to redeploy assets and capital to opportunities we believe will generate the best return and accelerate our initiatives to rationalize expenses. “