Aegean's Mcilroy: HEC Acquisition Is Pathway Back to Profit

Mcilroy says the HEC deal will strengthen company. Image Credit: Aegean

Aegean Marine Petroleum Network's HEC acquisition will support the company in building up shareholder value and facing down the bunker market's tough operating conditions, company president Jonathan Mcilroy has said.

McIlroy, who was outlining the rationale behind the move in a call with analysts, said that adding a new environmental sector to Aegean's range of activities would facilitate a pro-active response to current market conditions.

"The bunker market is very mature, it's overpopulated, it's ultra-competitive. We don't want to be playing defense for the next two years in anticipation of 2020," Mcilroy said as recorded by investor information website SeekingAlpha.

"The strategic decision to buy HEC and align Aegean into this new environmental sector is not going to diminish our focus on writing the core business and optimizing the core business," he added.

Aegean bought HEC Europe, the parent of Hellenic Environmental Center (HEC), in a shares-and-cash deal which it announced yesterday. HEC organises the disposal of ships' oil waste.

However, the acquistion comes at a time when Aegean's low share price has taken flak from some stakeholders.

Mcilroy said that the HEC acquistion sits well with the process already underway of rebuilding shareholder value.

"We've come out of a very difficult year in 2017, which is evident in the results.

"One of the dialogues that we've been having with all stakeholders in the business is the need for the company to preserve value, buil[d] shareholder [value], but also protect the asset base of the company," he said.

The Aegean-HEC deal will also see Aegean founder and former head of corporate development Dimitris Melisanidis return as a major shareholder in the company. Melisandidis owns and controls HEC.

Click here for full transcript