Aegean Cutting Expenses, Entering New Markets

by Ship & Bunker News Team
Friday March 8, 2013

E. Nikolas Tavlarios, president of Aegean Marine Petroleum Network Inc. (Aegean) [NYSE:ANW] told investors on an earnings call that the company is "controlling what we can control" in a "challenging market," including reducing costs by selling non-essential assets.

"We remain laser focused on rationalizing expenses by selling non-core and older vessels," he said.

Tavlarios said the company has sold 10 older vessels for a total of about $20 million in annual operating savings so far, and it is also trying to sell its floating storage facility in Fujairah as it is opening a new shore facility there toward the end of 2013.

He said the move reflects a global industry trend away from floating storage.

The company, which reported that its sales volume rose in the fourth quarter of 2012 but fell slightly for the full year, had its third consecutive quarter of reduced operating expenses in Q4, Tavlarios said.

The supplier has expanded its footprint to 20 markets and about 60 ports, and it is on track to start physical supply operations in Barcelona this quarter, in an expansion it announced last year.

At the same time, the company "strategically reduced" its presence in West Africa, a market Tavlarios said no longer fits its core business model.

Ship & Bunker News Team
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