Aegean: Global Bunker Demand is Robust, Americas Markets "Especially Strong Performers"

by Ship & Bunker News Team
Monday June 6, 2016

Aegean Marine Petroleum Network Inc. [NYSE: ANW] (Aegean) says global bunker demand in 1Q 2016 was strong, with markets in the Americas proving to be particularly so.

The comments, by Aegean President E. Nikolas Tavlarios, came during the bunker supplier's recent 1Q 2016 earnings call after it posted record quarterly volumes of 4,212,636 metric tonnes (mt) for the three months ended March 31, 2016 - an increase of almost 45 percent over the period in 2015.

"There is really robust demand. There is plenty of increases that are coming in and we have introduced some new ports. We are growing our back to back business a little bit, and you put all that together, you were getting higher numbers." said Tavlarios.

"North and South America, including the Caribbean, are especially strong performers. Certain markets are offsetting declines in others, and we will continue to adjust our resources to align with favourable trends and shifts."

The new supply ports Tavlarios referred to include its new bunkering operation in Algoa Bay, near the ports of Port Elizabeth and Coega, South Africa, which it launched in March.

At the end of 2014 Aegean also added a number of Americas-based supply locations, including Los Angeles and the Gulf of Mexico.

Elsewhere in the Americas, Aegean's physical operations includes the five East Coast supply locations in New York, Philadelphia, Baltimore, Chesapeake, and Charleston; the two Caribbean supply locations in Jamaica and Trinidad; and its other West Coast supply location in Vancouver, Canada.

During the earnings call Tavlarios also noted that low prices had continued to give smaller players more working capital to function, and as he did earlier in the year, said the oversupply of Iranian oil in the Middle East had meant Fujairah continued to face "headwinds" and strong competition.

In March Aegean announced the expansion of its U.S. West Coast team.