Aegean Marine Petroleum Network Inc. announced financial and operating results for the fourth quarter ended December 31, 2016.

Fourth Quarter Highlights and Full Year Financial Highlights

Recorded sales volumes of 3,954,700 metric tons in Q4 2016 and 16,519,079 metric tons for the full year.

Achieved gross profit of $90.8 million in Q4 and $353.5 million for the full year.

Generated operating income of $24.4 million in Q4.

Recorded net income attributable to Aegean shareholders of $16.0 million or $0.41 basic and diluted earnings per share for the fourth quarter and $51.9 million or $1.14 basic and diluted earnings per share for the full year.

Adjusted Net income for the full year was $61.4 million or $1.35 basic and diluted earnings per share.

Generated EBITDA of $32.5 million in Q4 and $125.6 million for the full year.

Full year adjusted EBITDA was $135.2 million.

Fourth Quarter and Full Year Operational Highlights

E. Nikolas Tavlarios, Aegean’s President, commented, “The fourth quarter marked the end of another strong year for Aegean, despite volatile commodity markets and increased competition. Our flexible business model continued to enable Aegean to capitalize on growth opportunities across our unique platform. As evidenced by consistent portfolio rationalization, we are focused on strengthening our operations and enhancing efficiencies across our business. Our global footprint now includes more than 30 markets and 51 ports, with a team dedicated to ensuring that customers are better equipped to run their businesses. We remain committed to executing our strategy and confident in our ability to generate sustainable growth to drive shareholder value.”

Generated Solid Financial Results

Revenue – The Company reported total revenue of $1.2 billion for the fourth quarter of 2016, an increase of 29.0% compared to the same period in 2015, primarily due to the increase in oil prices. Voyage and other revenues were, $20.6 million, approximately $4.4 million more than the same period in 2015.

Gross Profit – Gross Profit, which equals total revenue less directly attributable cost of revenue increased by 2.8% to $90.8 million in the fourth quarter of 2016 compared to $88.3 million in the same period in 2015.

Operating Expense – The Company reported operating expense of $66.4 million for the fourth quarter of 2016, an increase of $2.2 million or 3.4% compared to the same period in prior year.

Operating Income – Operating income for the fourth quarter of 2016 was $24.4 million, in line with the same period for the prior year.

Net Income – Net income attributable to Aegean shareholders was $16.0 million, or $0.41 per basic and diluted share, an increase of $6.3 million or 64.9% compared to the same period in 2015. Net income for the full year was $51.9 million or $1.14 basic and diluted earnings per share. Net income for the full year adjusted for gains/losses on sales of assets, impairment charges and the Accelerated Shares was $61.4 million or $1.35 basic and diluted earnings per share.

Operational Metrics

Sales Volume – For the three months ended December 31, 2016, the Company reported marine fuel sales volumes of 3,954,700 metric tons, a decrease of 1.9% compared to the same period in 2015.

Adjusted EBITDA Per Metric Ton of Marine Fuel Sold – For the three months ended December 31, 2016, the Company reported adjusted EBITDA per metric ton of marine fuel sold of $8.21. Adjusted EBITDA per metric ton of marine fuel sold in the prior year period was $8.14 per metric ton.

Gross Spread Per Metric Ton of Marine Fuel Sold – For the three months ended December 31, 2016, the Company reported gross spread per metric ton of marine fuel sold on an aggregate basis of $21.1. Gross spread per metric ton of marine fuel sold in the prior year period was $20.5.

Liquidity and Capital Resources

Net cash used in operating activities was $32.8 million for the three months ended December 31, 2016. Net income as adjusted for non-cash items (as defined in Note 9 below) was $25.9 million for the same period.

Net cash used in investing activities was $2.4 million for the three months ended December 31, 2016, primarily due to advances for fixed assets under construction.

Net cash provided by financing activities was $71.5 million for the three months ended December 31, 2016, primarily due to the proceeds from our recent convertible bond offering.

The weighted average basic and diluted shares outstanding for the three months ended December 31, 2016 was 37,612,600. The weighted average basic and diluted shares outstanding for the three months ended December 31, 2015 was 47,436,953.

Spyros Gianniotis, Aegean’s Chief Financial Officer, stated, “Our solid results and accomplishments during the quarter demonstrate the long-term potential of our financial strategy. During the fourth quarter we continued our focus on driving higher margins and profitable volume and improved our financial strength. We have maintained a strong balance sheet and are confident our flexibility will support Aegean’s continued success. Looking ahead, we will continue to deploy our resources into the most effective and profitable markets to generate the greatest return for Aegean shareholders.”

Full Report

Source: Aegean Marine Petroleum Network