Aegean Marine Petroleum Network Inc. yesterday announced financial and operating results for the fourth quarter ended December 31, 2012.

Fourth Quarter and Full Year Highlights

• Recorded sales volumes of 2,729,070 metric tons in Q4 2012 and 10,620,864 metric tons for the full year.

• Expanded gross profit to $71.8 million in Q4 2012 and $302.6 million for the full year.

• Recorded operating income of $11.3 million in Q4 2012 and $55.0 million for the full year.

o Operating income adjusted for the sale of non-core assets was $13.0 million in Q4 2012 and $61.0 million for the full year.

• Recorded net income of $3.3 million attributable to Aegean shareholders or $0.07 basic and diluted earnings per share in Q4 2012 and $20.1 million or $0.44 basic and diluted earnings per share for the full year.

o Net income attributable to Aegean shareholders adjusted for the sale of a vessel was $5.1 million or $0.11 basic and diluted earnings per share in Q4 2012 and $26.0 million or $0.56 basic and diluted earnings per share for the full year.

• Recorded EBITDA of $19.5 million in Q4 2012 and $87.6 million for the full year.

o EBITDA adjusted for the sale of vessels was $21.3 million in Q4 2012 and $93.6 million for the full year.

"Our eighth consecutive quarter of profitability rounded out a year of strong performance for Aegean," said E. Nikolas Tavlarios, President. "During the fourth quarter we further strengthened our integrated marine fuel logistics chain and continued to build volume in our lubricants business."

Mr. Tavlarios continued, "Throughout 2012, we grew our business across all key areas as we executed on our growth initiatives, made notable progress in diversifying and expanding our revenue base and increased our global market share. At the same time, we reduced our operating expense structure and leveraged our fixed infrastructure – both of which positively impacted our bottom line."

The Company achieved net income attributable to Aegean shareholders for the three months ended December 31, 2012 of $3.3 million, or $0.07 basic and diluted earnings per share. Net income attributable to AMPNI shareholders excluding a non-cash loss from the sale of a non-core vessel was $5.1 million or $0.11 basic and diluted earnings per share. For the three months ended December 31, 2011 the Company recorded net income of $6.3 million, or $0.14 basic and diluted earnings per share.

Total revenues for the three months ended December 31, 2012, of $1,734.7 million were consistent with the $1,740.3 million reported for the same period in 2011. For the three months ended December 31, 2012, sales of marine petroleum products of $1,724.0 million were also in-line with sales of $1,729.0 million for the same period in 2011. Gross profit, which equals total revenue less directly attributable cost of revenue decreased by 4.77% to $71.8 million in the fourth quarter of 2012 compared with $75.4 million in the same period in 2011.

For the three months ended December 31, 2012, the volume of marine fuel sold by the Company increased by 6.24% to 2,729,070 metric tons compared with 2,568,714 metric tons in the same period in 2011.

Operating income for the fourth quarter of 2012 decreased by 35.8% to $11.3 million as compared to $17.6 million for the same period in 2011. Operating income excluding a non-cash loss from the sale of a non-core vessel was $13.0 million. Operating expenses excluding net book gain or loss on sale of vessels increased by $1.0 million, or 1.8%, to $58.8 million for the three months ended December 31, 2012, compared with $57.8 million for the same period in 2011.

Mr. Tavlarios concluded, "Looking ahead to 2013, despite the challenging macroeconomic environment, we believe our focus on profitable volume growth, diversification and operational efficiencies will allow Aegean to achieve continued growth and enhance shareholder value."

Liquidity and Capital Resources

Net cash provided by operating activities was $42.5 million for the three months ended December 31, 2012. Net income, as adjusted for non-cash items (as defined in Note 9) was $15.6 million for the period.

Net cash used in investing activities was $27.7 million for the three months ended December 31, 2012, mainly due to the advances for other fixed assets under construction.

Net cash used in financing activities was $15.1 million for the three months ended December 31, 2012, primarily driven by the pay down of net borrowings.

As of December 31, 2012, the Company had cash and cash equivalents of $77.2 million and working capital of $53.0 million. Non-cash working capital, or working capital excluding cash and debt, was $434.7 million.

As of December 31, 2012, the Company had $326.4 million in available liquidity, which includes unrestricted cash and cash equivalents of $77.2 million and available undrawn amounts under the Company's working capital facilities of $249.2 million, to finance working capital requirements.

The weighted average basic and diluted shares outstanding for the three months ended December 31, 2012 were 45,501,233. The weighted average basic and diluted shares outstanding for the three months ended December 31, 2011 were 45,350,768.

Spyros Gianniotis, Chief Financial Officer, stated, "2012 was another strong year for the Company as we grew our base business and developed new revenue streams while improving the Company's cost structure. We executed on our strategy to sell non-core assets, which allowed us to reduce our expenditures related to maintenance and, at the same time, increase our fleet utilization and enhance overall profitability. As we leverage our dynamic financial model, we will use the financial flexibility it creates to invest in growth opportunities that we believe will create significant long-term value. We are well positioned to succeed should industry headwinds continue longer than anticipated, and at the same time, we have positioned the company to capitalize on improving macro fundamentals as they emerge."

Source: Aegean Marine Petroleum Network