UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE
13A-16 OR 15D-16 UNDER THE SECURITIES
EXCHANGE
ACT OF 1934
For the
month of February 2009
Commission
File Number: 001-33179
AEGEAN
MARINE PETROLEUM NETWORK INC.
(Translation
of registrant's name into English)
42
Hatzikyriakou Avenue
Piraeus,
Athens 185 38
Greece
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.
Form 20-F
[ X ] Form 40-F [
]
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(1): ________.
Note: Regulation S-T Rule
101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely
to provide an attached annual report to security holders.
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(7): ________.
Note: Regulation S-T Rule
101(b)(7) only permits the submission in paper of a Form 6-K if submitted to
furnish a report or other document that the registrant foreign private issuer
must furnish and make public under the laws of the jurisdiction in which the
registrant is incorporated, domiciled or legally organized (the registrant's
"home country"), or under the rules of the home country exchange on which the
registrant's securities are traded, as long as the report or other document is
not a press release, is not required to be and has not been distributed to the
registrant's security holders, and, if discussing a material event, has already
been the subject of a Form 6-K submission or other Commission filing on
EDGAR.
INFORMATION
CONTAINED IN THIS FORM 6-K REPORT
Attached
as Exhibit 1 is a copy of the press release of Aegean Marine Petroleum Network
Inc. (the “Company”), dated February 25, 2009, announcing the Company’s fourth
quarter and full year 2008 financial results.
Attached
as Exhibit 2 is a copy of the Company’s unaudited consolidated financial
statements.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
| AEGEAN MARINE PETROLEUM NETWORK INC. | |||
| (registrant) | |||
|
Dated: February
26, 2009
|
By: |
/s/ E. Nikolas Tavlarios
|
|
|
Name:
Title:
|
E.
Nikolas Tavlarios
President
|
||
SK 23250 0002
970071
Exhibit
1
| CONTACTS: | |||
| Aegean Marine Petroleum Network Inc. | Investor Relations: | ||
| (212) 763-5665 | Leon Berman, Principal | ||
|
investor@ampni.com
|
The IGB Group | ||
| (212) 477-8438 |
Aegean
Marine Petroleum Network Inc.
Announces
Record Fourth Quarter and Full Year 2008 Financial Results
Full
Year 2008 Net Income Increases 44.0%; Sales Volumes Climb 51.3%
PIRAEUS,
Greece, February 25, 2009 – Aegean Marine Petroleum Network Inc. (NYSE: ANW)
today announced financial and operating results for the fourth quarter and the
year ended December 31, 2008.
Highlights
|
|
·
|
Increased
sales volumes to 1,568,770 metric tons in Q4 2008 and 5,200,256 metric
tons for the full year.
|
|
|
·
|
Expanded
net revenues to $51.6 million in Q4 2008 and $170.9 million for
2008.
|
|
|
·
|
Generated
gross spread on marine petroleum products of $47.7 million in Q4 2008 and
$161.0 million for the full year.
|
|
|
·
|
Recorded
operating income of $18.3 million in Q4 2008 and $52.1 million for the
full year.
|
|
|
·
|
Reported
adjusted net income, which excludes a $1.0 million tax expense, of $14.1
million, or $0.33 basic and diluted earnings per share for Q4 2008. Net
Income for the quarter was $13.1 million, or $0.31 basic and diluted
earnings per share. Net Income for the full year was $39.9
million, or $0.94 basic and diluted earnings per
share.
|
|
|
·
|
Continued
expanding global presence and
infrastructure:
|
|
|
o
|
Announced
expansion into Trinidad and Tobago (Southern Caribbean) and Tangiers
(Morocco), increasing our presence to 13 markets
worldwide.
|
|
|
o
|
Took
delivery of seven double-hull bunkering tanker newbuildings in 2008 and
year-to-date in 2009.
|
|
|
o
|
Acquired
four double-hull bunkering tankers and two bunkering barges in the
secondary market in 2008 and year-to-date in
2009.
|
|
|
·
|
Implemented
a $25 million stock repurchase
program.
|
The
Company recorded net income of $13.1 million, or $0.31 basic and diluted
earnings per share, for the three months ended December 31, 2008. For purposes
of comparison, the Company reported net income of $6.3 million, or $0.15 basic
and diluted earnings per share, for the three months ended December 31, 2007.
The weighted average basic and diluted shares outstanding for the three months
ended December 31, 2008 were 42,517,249 and 42,525,507, respectively. The
weighted average basic and diluted shares outstanding for the three months ended
December 31, 2007 were 42,438,214 and 42,618,362, respectively.
During
the three months ended December 31, 2008, the Company incurred a $1.0 million
tax expense related to its Canadian unit. Aegean is currently in the
process of restructuring its Canadian business and expects
to significantly decrease its income tax liability in this jurisdiction going
forward. Adjusted net income, excluding this tax expense, was $14.1
million or $0.33 basic and diluted earnings per share.
Total
revenues for the three months ended December 31, 2008, increased by 10.7% to
$554.3 million compared to $500.6 million for the same period in 2007. For the
three months ended December 31, 2008, sales of marine petroleum products
increased by 10.7% to $550.5 million compared to $497.3 million for the
year-earlier period. Net revenues, which equal total revenues less cost of goods
sold and cargo transportation costs, increased 58.3% to $51.6 million in the
fourth quarter of 2008 compared to $32.6 million in the year-earlier
period.
Results
for the fourth quarter of 2008 were driven by a 62.8% increase in the gross
spread on marine petroleum products to $47.7 million compared to $29.3 million
for the same period in 2007. For the three months ended December 31, 2008, the
volume of marine fuel sold increased by 52.8% to 1,568,770 metric tons compared
to 1,026,395 metric tons in the year-earlier period, as sales volumes improved
significantly in Greece and Singapore. Furthermore, results for the fourth
quarter of 2008 included sales volumes from Aegean’s new markets: West Africa
(January 2008), U.K. (April 2008), and North America (July
2008). During the three months ended December 31, 2008, the gross
spread per metric ton of marine fuel sold increased to $30.2 per metric ton,
compared to $28.4 per metric ton in the year-earlier period. In the fourth
quarter of 2008, the Company adopted a change in its method of calculating gross
spread, described below in this release. Before taking into account
for this change, gross spread per metric ton for the fourth quarter 2008 was
$32.5.
Operating
income for the fourth quarter of 2008 was $18.3 million compared to $8.8 million
for the same period in 2007. Operating expenses, excluding the cost of fuel and
cargo transportation costs (both of which are included in the calculation of
gross spread on marine petroleum products explained above), increased to $33.3
million for the three months ended December 31, 2008 compared to $23.8 million
for the same period in 2007. This increase was principally due to
operating an expanded logistics infrastructure, comprised of a larger bunkering
fleet and more storage facilities, during the fourth quarter of 2008 compared to
the fourth quarter of 2007.
E.
Nikolas Tavlarios, President, commented, “Aegean’s record financial performance
for the fourth quarter and full year 2008 highlights our success in executing
management’s well-capitalized growth strategy and meeting the strong demand for
our integrated marine fuel services. As we continued to increase our global
market share during a challenging economic environment, we reported an increase
in both net income and sales volumes of 44.0% and 51.3%, respectively, while
strengthening Aegean’s position for future growth. Specifically, we once again
expanded our global platform by entering new markets in Vancouver, Montreal and
Mexico during 2008. We also grew our logistics infrastructure with the delivery
of six double-hull bunkering tanker newbuildings during the year. In further
improving our ability to capitalize on the increased demand for modern tonnage
created by the regulatory phase-out of single-hull vessels, we have taken
delivery of two double-hull bunkering tankers to date in 2009.”
Mr.
Tavlarios added, “We expect to commence operations in Tangiers, Morocco and
Trinidad and Tobago in the second quarter of 2009 and expect to take delivery of
20 additional double-hull bunkering tanker newbuilds by the end of 2010,
significantly expanding Aegean’s earnings potential. In maintaining our focus on
profitable growth, we intend to take advantage of our strong financial position,
a core differentiator for Aegean, to further enhance our leading brand and drive
future results.”
For the
year ended December 31, 2008, the Company recorded net income of $39.9 million,
or $0.94 basic and diluted earnings per share, compared to net income of $27.7
million, or $0.65 basic and diluted earnings per share, for the prior year. The
weighted average basic and diluted shares outstanding for the year ended
December 31, 2008 were 42,497,450 and 42,625,801, respectively. The weighted
average basic and diluted shares outstanding for the year ended December 31 2007
were 42,417,111 and 42,505,704, respectively.
Total
revenues for the year ended December 31, 2008 increased by 105.3% to $2,778.0
million compared to $1,352.9 million for the same period in 2007. For the year
ended December 31, 2008, sales of marine petroleum
products increased by 105.7% to $2,768.1 million compared to $1,345.8 million
for the same period in 2007. Net revenues for the full year 2008 increased 76.7%
to $170.9 million compared to $96.7 million in 2007.
Results
for the year ended December 31, 2008 were led by a 79.5% increase in the gross
spread on marine petroleum products to $161.0 million compared to $89.7 million
for the same period a year ago. For the year ended December 31, 2008, the volume
of marine fuel sold increased 51.3% to 5,200,256 metric tons compared to
3,437,269 metric tons in the year-earlier period. During the year ended December
31, 2008, the gross spread per metric ton of marine fuel sold increased to $30.7
per metric ton, compared to $25.9 per metric ton for the year prior. In the
fourth quarter of 2008, the Company adopted a change in its method of
calculating gross spread, described below in this release. Before
taking into account for this change, gross spread per metric ton for the full
year 2008 was $31.8.
Operating
income for the year ended December 31, 2008 was $52.1 million compared to $30.8
million for the same period in 2007. The increase in operating income was
attributable to higher gross spreads (or net revenues) and improved operating
leverage.
Liquidity
and Capital Resources
As of
December 31, 2008, the Company had cash and cash equivalents of $46.9 million
and working capital of $49.4 million. Non-cash working capital, or working
capital excluding cash and debt, was $100.2 million as of December 31,
2008.
Net cash
provided by operating activities was $87.8 million for the three months ended
December 31, 2008. Net income, as adjusted for non-cash items, was
$19.7 million for the period. Net cash provided by
operating activities was $136.7 million for the year ended December 31,
2008.
Net cash
used in investing activities was $26.7 million for the three months ended
December 31, 2008, mainly due to additional payments of $18.5 million under the
Company’s construction contracts with the shipyards and $8.3 million relating to
the acquisition of second-hand bunkering vessels. Net cash used in
investing activities was $135.7 million for the year ended December 31,
2008.
Net cash
used for financing activities was $44.3 million for the three months ended
December 31, 2008, primarily driven by a decrease of $59.6 million in the
Company’s short-term borrowings, as a consequence of lower marine fuel prices
and an improvement in the cash conversion cycle. Net cash provided by financing
activities was $43.9 million for the year ended December 31, 2008.
As of
December 31, 2008, the Company had approximately $296.9 million in available
liquidity to finance working capital requirements, which includes unrestricted
cash and cash equivalents and available undrawn amounts under the Company’s
short-term working capital facilities. Furthermore, as of December
31, 2008, the Company had funds of approximately $124.8 million available under
its secured term loans to finance the construction of its new double-hull
bunkering tankers.
Spyros
Gianniotis, Chief Financial Officer, stated, “Our record results for the fourth
quarter were led by strong sales volume growth in Singapore and Greece, where
the phase-out of single-hull vessels is complete, as well as contributions from
new markets. As Aegean strengthened its ability to benefit from the positive
industry fundamentals and enhanced its competitive position, the Company
continues to maintain its considerable financial strength. With our new $300
million senior secured credit facility, we intend to further execute our growth
plan and expand Aegean’s leading role as a global independent supplier of marine
fuel to blue-chip customers. Complementing this proven approach, we intend to
seek opportunities under our $25 million share repurchase program to create
additional value for shareholders.”
Summary
Consolidated Financial and Other Data (Unaudited)
|
For
the Three Months Ended December 31,
|
For
the Year Ended December 31,
|
|||||||||||||||
|
2007
|
2008
|
2007
|
2008
|
|||||||||||||
|
(in
thousands of U.S. dollars, unless otherwise stated)
|
||||||||||||||||
|
Income
Statement Data:
|
||||||||||||||||
|
Sales
of marine petroleum products
|
$497,260 | $550,497 | $1,345,849 | $2,768,067 | ||||||||||||
|
Voyage
and other revenues
|
3,331 | 3,851 | 7,024 | 9,905 | ||||||||||||
|
Total
revenues
|
500,591 | 554,348 | 1,352,873 | 2,777,972 | ||||||||||||
|
Cost
of marine petroleum products sold
|
465,806 | 499,677 | 1,251,712 | 2,594,443 | ||||||||||||
|
Salaries,
wages and related costs
|
9,533 | 12,282 | 24,363 | 41,666 | ||||||||||||
|
Depreciation
and amortization
|
2,986 | 4,699 | 9,597 | 16,557 | ||||||||||||
|
Gain
on sale of vessel
|
- | - | (2,693 | ) | - | |||||||||||
|
All
other operating expenses
|
13,450 | 19,421 | 39,096 | 73,157 | ||||||||||||
|
Operating
income
|
8,816 | 18,269 | 30,798 | 52,149 | ||||||||||||
|
Net
financing cost (income)
|
1,835 | 3,957 | 1,483 | 11,876 | ||||||||||||
|
FX
losses (gains), net
|
719 | 251 | 1,569 | (1,521 | ) | |||||||||||
|
Income
Taxes
|
7 | 989 | 8 | 1,879 | ||||||||||||
|
Net
income
|
$6,255 | $13,072 | $27,738 | $39,915 | ||||||||||||
|
Basic
and diluted earnings per share (U.S. dollars)
|
$0.15 | $0.31 | $0.65 | $0.94 | ||||||||||||
|
Diluted
earnings per share (U.S. dollars)
|
$0.15 | $0.31 | $0.65 | $0.94 | ||||||||||||
|
Other
Financial Data:
|
||||||||||||||||
|
Gross
spread on marine petroleum products(1)
|
$29,303 | $47,728 | $89,671 | $160,963 | ||||||||||||
|
Gross
spread on lubricants(1)
|
141 | 334 | 536 | 1,298 | ||||||||||||
|
Gross
spread on marine fuel(1)
|
29,162 | 47,394 | 89,135 | 159,665 | ||||||||||||
|
Gross
spread per metric ton of marine
fuel
sold (U.S. dollars)
(1)
|
28.4 | 30.2 | 25.9 | 30.7 | ||||||||||||
|
Net
cash provided by (used in) operating activities
|
(84,902 | ) | 87,845 | (128,128 | ) | 136,737 | ||||||||||
|
Net
cash used in investing activities
|
39,487 | 26,694 | 124,692 | 135,667 | ||||||||||||
|
Net
cash provided by (used for) financing activities
|
$127,900 | $(44,334 | ) | $172,362 | $43,890 | |||||||||||
|
Sales
Volume Data (Metric Tons):
(2)
|
||||||||||||||||
|
Greece
|
111,179 | 241,130 | 427,685 | 695,848 | ||||||||||||
|
Gibraltar
|
300,385 | 254,395 | 1,143,458 | 1,008,875 | ||||||||||||
|
UAE
|
247,481 | 262,639 | 728,098 | 987,952 | ||||||||||||
|
Jamaica
|
130,090 | 118,440 | 562,656 | 522,206 | ||||||||||||
|
Singapore
|
166,892 | 374,129 | 488,876 | 1,128,407 | ||||||||||||
|
Northern
Europe
|
65,709 | 82,909 | 65,709 | 278,545 | ||||||||||||
|
West
Africa
|
- | 61,196 | - | 174,567 | ||||||||||||
|
UK
(Portland)
|
- | 40,754 | - | 114,208 | ||||||||||||
|
Vancouver
|
- | 72,469 | - | 157,042 | ||||||||||||
|
Other
sales volumes(3)
|
4,659 | 60,709 | 20,787 | 132,606 | ||||||||||||
|
Total
sales
volumes
|
1,026,395 | 1,568,770 | 3,437,269 | 5,200,256 | ||||||||||||
|
Other
Operating Data:
|
||||||||||||||||
|
Bunkering
fleet, end of period number(4)
|
17.0 | 30.0 | 17.0 | 30.0 | ||||||||||||
|
Bunkering
fleet, average number for the period(4)(5)
|
16.1 | 27.2 | 13.5 | 22.7 | ||||||||||||
|
RoRo
Vessels, end of period number
|
0.0 | 1.0 | 0.0 | 1.0 | ||||||||||||
|
Special
Purpose Vessels, end of period number(6)
|
0.0 | 1.0 | 0.0 | 1.0 | ||||||||||||
|
Number
of owned storage facilities, end of period(7)
|
2.0 | 4.0 | 2.0 | 4.0 | ||||||||||||
Summary Consolidated
Financial and Other Data (Unaudited)
|
As
of
December
31, 2007
|
As
of
December
31, 2008
|
|||||||
|
(in
thousands of U.S. dollars,
unless
otherwise stated)
|
||||||||
|
Balance
Sheet Data:
|
||||||||
|
Cash
and cash equivalents
|
1,967 | 46,927 | ||||||
|
Gross
trade receivables
|
193,257 | 132,589 | ||||||
|
Allowance
for doubtful accounts
|
(1,603 | ) | (1,323 | ) | ||||
|
Inventories
|
97,140 | 55,330 | ||||||
|
Current
assets
|
314,864 | 251,387 | ||||||
|
Total
assets
|
566,957 | 641,907 | ||||||
|
Trade
payables
|
105,055 | 90,279 | ||||||
|
Current
liabilities (including current portion of long-term debt)
|
251,335 | 202,022 | ||||||
|
Total
debt
|
208,031 | 253,621 | ||||||
|
Total
liabilities
|
323,232 | 356,904 | ||||||
|
Total
stockholder’s equity
|
243,725 | 285,003 | ||||||
|
Working
Capital Data:
|
||||||||
|
Working
capital(8)
|
63,529 | 49,365 | ||||||
|
Working
capital excluding cash and debt(8)
|
190,212 | 100,158 | ||||||
|
|
1.
|
Gross
spread on marine petroleum products represents the margin the Company
generates on sales of marine fuel and lubricants. Gross spread
on marine fuel represents the margin that the Company generates on sales
of various classifications of marine fuel oil (“MFO”) or marine
gas oil (“MGO”). Gross spread on lubricants represents the margin that the
Company generates on sales of lubricants. The Company calculates the
above-mentioned gross spreads by subtracting from the sales of the
respective marine petroleum product the cost of the respective marine
petroleum product sold and cargo transportation costs. For arrangements in
which the Company physically supplies the respective marine petroleum
product using its bunkering tankers, costs of the respective marine
petroleum products sold represents amounts paid by the Company for the
respective marine petroleum product sold in the relevant reporting period.
For arrangements in which the respective marine petroleum product is
purchased from the Company’s related company, Aegean Oil S.A., or Aegean
Oil, cost of the respective marine petroleum products sold represents the
total amount paid by the Company to the physical supplier for the
respective marine petroleum product and its delivery to the customer. For
arrangements in which the Company purchases cargos of marine fuel for its
floating storage facilities, transportation costs may be included in the
purchase price of marine fuels from the supplier or may be incurred
separately from a transportation
provider.
|
|
|
Gross
spread per metric ton of marine fuel sold represents the margin the
Company generates per metric ton of marine fuel sold. The Company
calculates gross spread per metric ton of marine fuel sold by dividing the
gross spread on marine fuel by the sales volume of marine fuel. Marine
fuel sales do not include sales of lubricants. The following table
reflects the calculation of gross spread per metric ton of marine fuel
sold for the periods presented:
|
|
Summary
Consolidated Financial and Other Data
(Unaudited)
|
|
For
the Three Months
Ended
December 31,
|
For
the Year Ended
December
31,
|
|||||||||||||||
|
2007
|
2008
|
2007
|
2008
|
|||||||||||||
|
(in
thousands of U.S. dollars, unless otherwise stated)
|
||||||||||||||||
|
Sales
of marine petroleum products
|
497,260 | 550,497 | 1,345,849 | 2,768,067 | ||||||||||||
|
Less:
Cost of marine petroleum products sold
|
(465,806 | ) | (499,677 | ) | (1,251,712 | ) | (2,594,443 | ) | ||||||||
|
Less:
Cargo transportation costs
|
(2,151 | ) | (3,092 | ) | (4,466 | ) | (12,661 | ) | ||||||||
|
Gross
spread on marine petroleum products
|
29,303 | 47,728 | 89,671 | 160,963 | ||||||||||||
|
Less:
Gross spread on lubricants
|
(141 | ) | (334 | ) | (536 | ) | (1,298 | ) | ||||||||
|
Gross
spread on marine fuel
|
29,162 | 47,394 | 89,135 | 159,665 | ||||||||||||
|
Sales
volume of marine fuel (metric tons)
|
1,026,395 | 1,568,770 | 3,437,269 | 5,200,256 | ||||||||||||
|
Gross
spread per metric ton of marine
fuel
sold (U.S. dollars)
|
28.4 | 30.2 | 25.9 | 30.7 | ||||||||||||
|
|
The
Company previously reported FX fluctuations from the recording of
intercompany purchases and sales of marine petroleum products, in the data
line known as FX losses, (gains), net. As of the 4th
quarter of 2008 such (losses) or gains due to FX fluctuations from the
recording of intercompany purchases and sales of marine petroleum
products, are reported under cost of marine petroleum products. This
change would not have had a significant impact on the gross margin
of previous quarters due to the relative size of such fluctuations.
Under the previous calculation formula, gross spread per metric ton would
have been $32.5 for the fourth quarter of 2008 and $31.8 for the full year
2008.
|
|
|
The
amount that the Company has to pay for marine petroleum products to
fulfill a customer order has been the primary variable in determining the
prices quoted to customers. Therefore, the Company evaluates gross spread
per metric ton of marine fuel sold in pricing individual transactions and
in long-term strategic pricing decisions. The Company actively monitors
its pricing and sourcing strategies in order to optimize its gross spread
on marine petroleum products. The Company believes that this measure is
important to investors because it is an effective intermediate performance
measure of the strength of the Company’s
operations.
|
|
|
Gross
spread on marine petroleum products, including gross spread on marine fuel
and gross spread on lubricants, and gross spread per metric ton of marine
fuel sold should not be considered as alternatives to operating income,
net income or other GAAP measures and may not be comparable to similarly
titled measures of other companies. These measures do not reflect certain
direct or indirect costs of delivering marine petroleum products to the
Company’s customers (such as crew salaries, vessel depreciation, storage
costs, other vessel operating expenses or overhead costs) or other costs
of doing business.
|
|
|
For
all periods presented, the Company purchased marine petroleum products in
Greece from its related company, Aegean Oil, which is a physical supplier
in Greece. The cost of these marine petroleum products was contractually
calculated based on Aegean Oil's actual cost of these products plus a
margin.
|
|
|
2.
|
Sales
volume data details the volume of marine fuel sold per service center.
Sales volume of marine fuel is the volume of sales of various
classifications of MFO and MGO for the relevant period and is denominated
in metric tons. The Company does not use the sales volume of lubricants as
an indicator.
|
|
|
The
Company’s markets include its physical supply operations in the United
Arab Emirates, Gibraltar, Jamaica, Singapore, Northern Europe, Ghana,
Vancouver, Portland (U.K.), and Greece, where the Company conducts
operations through its related company, Aegean Oil. Aegean
expects to commence operations in Trinidad and Tobago (Southern Caribbean)
and Tangiers (Morocco) in Q2 2009.
|
|
|
Sales
volumes of marine fuel attributed to each market are based on the
point-of-delivery geographical location of the customer
vessels.
|
|
|
3.
|
Other
sales volumes represent sales volumes of marine fuel in which the Company
acts as a broker or trader and does not physically supply the product to
end-user.
|
|
|
4.
|
Bunkering
fleet comprises both bunkering vessels and
barges.
|
| 5. | Figure represents average bunkering fleet number for the relevant period, as measured by the sum of the number of days each bunkering tanker or barge was used as part of the fleet during the period divided by the cumulative number of calendar days in the period multiplied by the number of bunkering tankers at the end of the period. This figure does not take into account non-operating days due to either scheduled or unscheduled maintenance. |
|
|
6.
|
Special
Purpose Vessels consists of the Orion, a 550 dwt tanker which is based in
our U.K. market.
|
|
|
7.
|
As
of December 31, 2008, the Company used its two Panamax tankers, the
Ouranos and the Fos, as floating storage facilities in the United Arab
Emirates and Ghana, respectively, and its Aframax tanker, the Leader, as a
floating storage facility in
Gibraltar.
|
|
|
The
ownership of floating storage facilities allows the Company to mitigate
its risk of supply shortages. Generally, storage costs are included in the
price of refined marine fuel quoted by local suppliers. The Company
expects that the ownership of floating storage facilities will allow it to
convert the variable costs of this storage fee mark-up per metric ton
quoted by suppliers into fixed costs of operating its owned storage
facilities, thus enabling the Company to spread larger sales volumes over
a fixed cost base and to decrease its refined fuel
costs.
|
|
|
8.
|
Working
capital is defined as current assets minus current liabilities. Working
capital excluding cash and debt is defined as current assets minus cash
and cash equivalents minus restricted cash minus current liabilities plus
short-term borrowings plus current portion of long-term
debt.
|
Fourth
Quarter 2008 Dividend Announcement
On
February 25, 2009, the Company’s Board of Directors declared a fourth quarter
2008 dividend of $0.01 per share payable on March 19, 2009, to shareholders of
record as of March 5, 2009. 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 at 11:30 a.m. ET on Thursday, February 26, 2009, to discuss its
fourth quarter results. Investors may access the webcast and related
slide presentation, by visiting the Company’s website at www.ampni.com, and
clicking on the webcast link. The conference call also may be
accessed via telephone by dialing (877) 857-6177 (for U.S.-based callers) or
(719) 325-4788 (for international callers) and enter the passcode:
4789635.
A replay
of the webcast will be available soon after the completion of the call and will
be accessible on www.ampni.com. A telephone replay will be available
through Thursday, March 12, 2009, by dialing 888-203-1112 (for U.S.-based
callers) or 719-457-0820 (for international callers) and enter the passcode:
4789635.
About
Aegean Marine Petroleum Network Inc.
Aegean
Marine Petroleum Network Inc. is an international marine fuel logistics company
that markets and physically supplies refined marine fuel and lubricants to ships
in port and at sea. The Company procures product from various sources (such as
refineries, oil producers, and traders) and resells it to a diverse
group of customers across all major commercial shipping sectors and leading
cruise lines. Currently, Aegean has a global presence in 13 markets, including
Vancouver, Montreal, Mexico, Jamaica, West Africa, Gibraltar, U.K., Northern
Europe, Greece, the United Arab Emirates as well as Singapore, and plans to
commence operations in Tangiers, Morocco and Trinidad and Tobago.
Cautionary
Statement Regarding Forward-Looking Statements
Matters
discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995
provides safe harbor protections for forward-looking statements in order to
encourage companies to provide prospective information about their
business. Forward-looking statements include statements concerning
plans, objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than statements of
historical facts.
The
Company desires to take advantage of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The words "believe,"
"intend," "anticipate," "estimate," "project," "forecast," "plan," "potential,"
"may," "should," "expect" and similar expressions identify forward-looking
statements. The forward-looking statements in this press release are based upon
various assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, our management's examination of historical
operating trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond our control, we cannot assure you that we will achieve or accomplish
these expectations, beliefs or projections.
In
addition to these important factors, other important factors that, in our view,
could cause actual results to differ materially from those discussed in the
forward-looking statements include our ability to manage growth, our ability to
maintain our business in light of our proposed business and location expansion,
our ability to obtain double hull secondhand bunkering tankers, the outcome of
legal, tax or regulatory proceedings to which we may become a party, adverse
conditions in the shipping or the marine fuel supply industries, our ability to
retain our key suppliers and key customers, material disruptions in the
availability or supply of crude oil or refined petroleum products, changes in
the market price of petroleum, including the volatility of spot pricing,
increased levels of competition, compliance or lack of compliance with various
environmental and other applicable laws and regulations, our ability to collect
accounts receivable, changes in the political, economic or regulatory conditions
in the markets in which we operate, and the world in general, our failure to
hedge certain financial risks associated with our business, our ability to
maintain our current tax treatments and our failure to comply with restrictions
in our credit agreements and other factors. Please see our filings
with the Securities and Exchange Commission for a more complete discussion of
these and other risks and uncertainties.
A
copy of the Company’s interim unaudited consolidated financial statements along
with this press release have been filed today with the U.S. Securities and
Exchange Commission on Form 6-K and are available on the SEC’s website, www.sec.gov.
Exhibit
2
AEGEAN
MARINE PETROLEUM NETWORK INC.
CONSOLIDATED
BALANCE SHEETS
AS OF DECEMBER 31, 2007 AND 2008
(UNAUDITED)
(Expressed
in thousands of U.S. dollars – except for share and per share data)
|
December
31,
|
||||||||
|
2007
|
2008
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT
ASSETS:
|
||||||||
|
Cash
and cash equivalents
|
$1,967 | $46,927 | ||||||
|
Trade
receivables, net of allowance for doubtful accounts
of
$1,603 and $1,323, as of December 31, 2007 and 2008,
respectively
|
||||||||
| 191,654 | 131,266 | |||||||
|
Due
from related companies (Note 4)
|
3,686 | 2,501 | ||||||
|
Inventories
(Note 5)
|
97,140 | 55,330 | ||||||
|
Prepayments
and other current assets (Note 10)
|
12,417 | 13,731 | ||||||
|
Restricted
cash (Note 2)
|
8,000 | 1,632 | ||||||
|
Total
current assets
|
314,864 | 251,387 | ||||||
|
FIXED
ASSETS:
|
||||||||
|
Advances
for vessels under construction and acquisitions (Note 6)
|
84,378 | 113,564 | ||||||
|
Vessels,
cost (Notes 7, 12 and 20)
|
149,866 | 260,741 | ||||||
|
Vessels,
accumulated depreciation (Notes 7, 12 and 20)
|
(14,312 | ) | (26,606 | ) | ||||
|
Vessels’
net book value
|
135,554 | 234,135 | ||||||
|
Other
fixed assets, net (Notes 8 and 20)
|
1,431 | 1,681 | ||||||
|
Total
fixed assets
|
221,363 | 349,380 | ||||||
|
OTHER
NON-CURRENT ASSETS:
|
||||||||
|
Restricted
cash (Notes 2 and 12)
|
10,171 | 3,838 | ||||||
|
Deferred
charges, net (Note 9)
|
8,869 | 12,440 | ||||||
|
Consession
Agreement (Note 3)
|
7,720 | 7,407 | ||||||
|
Goodwill
(Note 3)
|
3,943 | 17,431 | ||||||
|
Other
non-current assets
|
27 | 24 | ||||||
|
Total
assets
|
$566,957 | $641,907 | ||||||
|
LIABILITIES AND STOCKHOLDERS’
EQUITY
|
||||||||
|
CURRENT
LIABILITIES:
|
||||||||
|
Short-term
borrowings (Note 11)
|
$133,000 | $90,000 | ||||||
|
Current
portion of long-term debt (Note 12)
|
3,650 | 9,352 | ||||||
|
Trade
payables to third parties
|
77,862 | 67,817 | ||||||
|
Trade
payables to related companies (Note 4)
|
27,193 | 22,462 | ||||||
|
Other
payables to related companies
|
160 | 187 | ||||||
|
Accrued
and other current liabilities (Note 12)
|
9,470 | 12,204 | ||||||
|
Total
current liabilities
|
251,335 | 202,022 | ||||||
|
LONG-TERM
DEBT, net of current portion (Note 12)
|
71,381 | 154,269 | ||||||
|
OTHER
NON-CURRENT LIABILITIES
|
516 | 613 | ||||||
|
COMMITMENTS
AND CONTINGENCIES (Note 13)
|
- | - | ||||||
|
STOCKHOLDERS’
EQUITY:
|
||||||||
|
Preferred
stock, $0.01 par value; 25,000,000 shares authorized, none
issued
|
- | - | ||||||
|
Common stock, $0.01 par value; 100,000,000 shares authorized at December
31, 2007 and 2008; 42,461,428 and 42,543,608 shares, issued and
outstanding at December 31, 2007 and 2008, respectively (Note
17)
|
425 | 425 | ||||||
|
Additional
paid-in capital (Note 17)
|
187,795 | 190,658 | ||||||
|
Accumulated
other comprehensive income
|
- | 211 | ||||||
|
Retained
earnings
|
55,505 | 93,709 | ||||||
|
Total
stockholders’ equity
|
243,725 | 285,003 | ||||||
|
Total
liabilities and stockholders’ equity
|
$566,957 | $641,907 | ||||||
AEGEAN
MARINE PETROLEUM NETWORK INC.
CONSOLIDATED
STATEMENTS OF INCOME
FOR
THE YEARS ENDED DECEMBER 31, 2006, 2007 AND 2008
(UNAUDITED)
(Expressed
in thousands of U.S. dollars – except for share and per share data)
|
For
the Year Ended December 31,
|
||||||||||||
|
2006
|
2007
|
2008
|
||||||||||
|
REVENUES:
|
||||||||||||
|
Sales
of marine petroleum products – third parties (Note 20)
|
$775,816 | $1,331,144 | $2,757,181 | |||||||||
|
Sales
of marine petroleum products – related companies (Notes 4 and
20)
|
14,841 | 14,705 | 10,886 | |||||||||
|
Voyage
revenues
|
11,639 | 5,758 | 1,379 | |||||||||
|
Other
revenues
|
1,516 | 1,266 | 8,526 | |||||||||
|
Total
revenues
|
803,812 | 1,352,873 | 2,777,972 | |||||||||
|
OPERATING
EXPENSES:
|
||||||||||||
|
Cost
of marine petroleum products sold – third parties
|
573,615 | 1,091,769 | 2,242,911 | |||||||||
|
Cost
of marine petroleum products sold – related companies (Note
4)
|
155,022 | 159,943 | 351,532 | |||||||||
|
Salaries,
wages and related costs
|
12,871 | 24,363 | 41,666 | |||||||||
|
Depreciation
(Notes 7 and 8)
|
4,240 | 6,373 | 12,604 | |||||||||
|
Amortization
of drydocking costs (Note 9)
|
1,684 | 3,172 | 3,640 | |||||||||
|
Amortization
of concession agreement (Note 3)
|
- | 52 | 313 | |||||||||
|
Management
fees (Note 4)
|
223 | 54 | - | |||||||||
|
Gain
on sale of vessel (Note 7)
|
- | (2,693 | ) | - | ||||||||
|
Other
operating expenses (Note 14)
|
25,697 | 39,042 | 73,157 | |||||||||
|
Total
operating expenses
|
773,352 | 1,322,075 | 2,725,823 | |||||||||
|
Operating
income
|
30,460 | 30,798 | 52,149 | |||||||||
|
OTHER
INCOME/(EXPENSE):
|
||||||||||||
|
Write-off
of deferred IPO costs
|
(1,588 | ) | - | - | ||||||||
|
Interest
and finance costs (Notes 11, 12 and 15)
|
(5,207 | ) | (3,473 | ) | (12,377 | ) | ||||||
|
Interest
income
|
976 | 1,990 | 501 | |||||||||
|
Foreign
exchange gains (losses), net
|
(414 | ) | (1,569 | ) | 1,521 | |||||||
| (6,233 | ) | (3,052 | ) | (10,355 | ) | |||||||
|
Income
before income taxes
|
24,227 | 27,746 | 41,794 | |||||||||
|
Income
taxes (Note 19)
|
(2 | ) | (8 | ) | (1,879 | ) | ||||||
|
Net
income
|
$24,225 | $27,738 | $39,915 | |||||||||
|
Basic
earnings per common share
|
$0.84 | $0.65 | $0.94 | |||||||||
|
Diluted
earnings per common share
|
$0.84 | $0.65 | $0.94 | |||||||||
|
Weighted
average number of shares, basic
|
28,954,521 | 42,417,111 | 42,497,450 | |||||||||
|
Weighted
average number of shares, diluted
|
28,954,622 | 42,505,704 | 42,625,801 | |||||||||
AEGEAN
MARINE PETROLEUM NETWORK INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
FOR
THE YEARS ENDED DECEMBER 31, 2006, 2007 AND 2008
(UNAUDITED)
(Expressed
in thousands of U.S. dollars)
|
For
the Year Ended December 31,
|
||||||||||||
|
2006
|
2007
|
2008
|
||||||||||
|
Cash
flows from operating activities:
|
||||||||||||
|
Net
income
|
$24,225 | $27,738 | $39,915 | |||||||||
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||||
|
Depreciation
|
4,240 | 6,373 | 12,604 | |||||||||
|
Provision
for doubtful accounts
|
412 | 497 | (280 | ) | ||||||||
|
Share-based
compensation
|
38 | 1,920 | 2,863 | |||||||||
|
Amortization
|
1,855 | 3,457 | 4,783 | |||||||||
|
Provision
for income taxes
|
2 | 8 | 1,879 | |||||||||
|
Gain
on sale of vessel
|
- | (2,693 | ) | - | ||||||||
|
Other
non-cash charges
|
- | - | (136 | ) | ||||||||
|
(Increase)
decrease in:
|
||||||||||||
|
Trade
receivables
|
(985 | ) | (115,707 | ) | 87,228 | |||||||
|
Due
from related companies
|
6,346 | (3,217 | ) | 1,185 | ||||||||
|
Inventories
|
(24,250 | ) | (65,205 | ) | 44,550 | |||||||
|
Prepayments
and other current assets
|
(1,836 | ) | (9,414 | ) | (1,187 | ) | ||||||
|
Increase
(decrease) in:
|
||||||||||||
|
Trade
payables
|
12,897 | 27,213 | (35,680 | ) | ||||||||
|
Other
payables to related companies
|
18 | 35 | 27 | |||||||||
|
Accrued
and other current liabilities
|
3,781 | 3,743 | (14,314 | ) | ||||||||
|
Decrease
(increase) in other non-current assets
|
870 | (10 | ) | 93 | ||||||||
|
Increase
in other non-current liabilities
|
88 | 320 | 97 | |||||||||
|
Payments
for drydocking
|
(10,637 | ) | (3,186 | ) | (6,890 | ) | ||||||
|
Net
cash provided by (used in) operating activities
|
17,064 | (128,128 | ) | 136,737 | ||||||||
|
Cash
flows from investing activities:
|
||||||||||||
|
Advances
for vessels under construction
|
(35,396 | ) | (55,529 | ) | (116,990 | ) | ||||||
|
Advances
for vessel acquisitions
|
(34,895 | ) | (66,217 | ) | (21,665 | ) | ||||||
|
Corporate
acquisitions, net of cash acquired
|
- | (5,728 | ) | (9,065 | ) | |||||||
|
Net
proceeds from sale of vessels
|
12,900 | 8,276 | - | |||||||||
|
Purchase
of other fixed assets
|
(83 | ) | (409 | ) | (549 | ) | ||||||
|
Decrease
(increase) in restricted cash
|
2,284 | (5,085 | ) | 12,602 | ||||||||
|
Net
cash used in investing activities
|
(55,190 | ) | (124,692 | ) | (135,667 | ) | ||||||
|
Cash
flows from financing activities:
|
||||||||||||
|
Proceeds
from long-term debt
|
41,714 | 41,815 | 93,636 | |||||||||
|
Repayment
of long-term debt
|
(42,866 | ) | (280 | ) | (4,120 | ) | ||||||
|
Net
change in short-term borrowings
|
(42,993 | ) | 133,000 | (43,000 | ) | |||||||
|
Net
change in short-term related company borrowings
|
(23,595 | ) | - | - | ||||||||
|
Financing
costs paid
|
(520 | ) | (468 | ) | (915 | ) | ||||||
|
IPO
proceeds, net of issuance costs
|
185,209 | - | - | |||||||||
|
Dividends
paid
|
(4,000 | ) | (1,705 | ) | (1,711 | ) | ||||||
|
Net
cash provided by financing activities
|
112,949 | 172,362 | 43,890 | |||||||||
|
Net
increase (decrease) in cash and cash equivalents
|
74,823 | (80,458 | ) | 44,960 | ||||||||
|
Cash
and cash equivalents at beginning of year
|
7,602 | 82,425 | 1,967 | |||||||||
|
Cash
and cash equivalents at end of year
|
$82,425 | $1,967 | $46,927 | |||||||||