Aegean: Profits Up, Bunker Sales Down in 2013

Aegean has sold non-essential vessels to improve utilization and profitability

Bunker sales volume for Aegean Marine Petroleum Network [NYSE:ANW] (Aegean) fell 8 percent to 9.9 million metric tonnes (mt) in 2013 as it reorganised its operations for greater profitability, increasing the net income to its shareholders 35 percent to $27.1 million, the company reports.

For the fourth quarter, the drop in volumes was even sharper, with sales falling 13 percent to 2.4 million mt, while net income more than doubled to $7 million.

Revenues dropped 13 percent to $6.0 billion for the year and fell 15 percent to $1.4 billion for Q4.

"We closed 2013 with great momentum and the fourth quarter marked our third consecutive full year of profitability," said President E. Nikolas Tavlarios.

"Despite persisting market headwinds, we executed on our strategy and once again demonstrated the strength of our business model and our ability to drive compelling returns in a challenging environment."

Tavlarios said the company benefitted from its flexible infrastructure and sold non-core vessels in an effort to improve fleet utilisation and grow profits.

"We continue to build significant and sustainable internal growth drivers, including our new Aegean U.S. East Coast business and our soon-to-be launched Fujairah storage facility, which we believe will allow Aegean to continue to succeed should market headwinds persist," Tavlarios said.

"For 2014, however, we are beginning to see indications that the macro environment will improve steadily throughout the year, and we believe Aegean is uniquely positioned to incrementally benefit from this strengthening market."

Aegean announced plans early in 2013 to sell non-essential assets and adjust its geographical profile, and it acquired Hess Corp [NYSE:HES]'s U.S. East Coast bunkering business in December.