Aegean Marine Petroleum Network Inc. (the “Company” or “Aegean”) (NYSE: ANW), a leading international marine fuel logistics company, announced that it expects to report a net loss for the third quarter of 2017 of between $3.4 – $4.4 million or a loss of $0.09 – $0.11 per share.
While the Company continues to make significant progress on its cost savings initiatives, the challenging operating environment that dominated the first half of 2017 has continued to put pressure on sales margins, depressing the Company’s gross profit and inhibiting its ability to offset the cost of its operations.
Jonathan McIlroy, Aegean’s President, commented, “The third quarter of 2017 has seen a continuation of the challenging market trends that our Company and our competitors have faced throughout this year. In addition, a combination of three hurricanes and one serious refinery fire compounded what was already a tough environment in the third quarter. Despite modest improvement in some segments of the shipping industry, the oil markets and the marine fuel sector remain under great pressure. We continue to see margin deterioration in many of our key markets resulting from lackluster demand and increased competition. This was a deciding factor in our recent decision to withdraw from the physical supply business in the Singapore market. We as a company are committed to offsetting market weakness by being proactive where we can. Through cost savings initiatives and seeking growth opportunities in higher margin markets, these actions should improve the profitability of our business over time. Our recent changes in Singapore are illustrative of this commitment to our shareholders.”
McIlroy continued, “Despite our expected third quarter loss, we have taken cumulative measures through October 2017 that are aimed to yield more than $20 million in annualized cost savings. These measures include downsizing our U.S. West Coast storage footprint, our recently announced withdrawal as a physical supplier in Singapore as well as other fleet savings through the deactivation of unproductive tonnage. Even after these savings are accounted for, we believe there remains further opportunity to cut costs across our network. We expect to discuss the market and these cost savings in more detail when we announce full third quarter results.”
Timing of Earnings
The Company plans to release its results for the third quarter of 2017 on Wednesday, November 15, 2017, after the close of market trading. The Company will hold a conference call during which it will discuss third quarter results in more detail on Thursday, November 16, 2017, at 8:30 A.M. Eastern Time.
Conference Call Details
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: +1 (866) 819-7111 (from the U.S.), 0(800) 953-0329 (from the U.K.) or (+44) (0) 1452 542 301 (Standard International Dial In). Please request “Aegean” from the operator.
A telephonic replay of the conference call will be available until Thursday, November 23, 2017. The United States replay number is +1 (866) 247-4222; from the U.K. 0(800) 953-1533; the standard international replay number is (+44) (0) 1452 550 000 and the access code required for the replay is: 88442018.