Aegean Sees Rise in Q2 Revenue, Margins

Aegean President E. Nikolas Tavlarios said he was excited about the company's storage operations in Fujairah.

For the three months ended June 30, 2014 Aegean Marine Petroleum Network Inc. [NYSE: ANW] (Aegean) has recorded a 1.7 percent increase in revenues year-on-year to $1,720.2 million, the bunker company said in its latest second quarter earnings report.

The gain comes despite a slight dip in bunker sales volumes for the period, which decreased by 1.2 percent to 2,659,620 metric tonnes (mt) compared with 2,693,151 mt in the same period in 2013, but the firm reported its gross margin rose to $29.1 per mt (pmt), up from $23.1 pmt for the period last year.

Year-to-date volumes are up 6 percent at 5,365,443 mt, compared to 5,060,228 mt for the 6 months ended June 30, 2013.

Gross profit for Q2 2014 was $84.5 million, a 21.5 percent increase on the $69.5 million for the period last year, and there was a big jump in net income attributable to Aegean shareholders to $9.3 million, or $0.20 basic and diluted earnings per share, up from $5.5 million, or $0.12 basic and diluted earnings per share, in Q2 2013.

"Our strong second quarter results extend our recent track record of profitability and growth and demonstrate that we are successfully executing our strategy despite prevailing industry headwinds. We have developed sustainable growth drivers and believe we remain well positioned to continue to consistently deliver strong results," commented Aegean President E. Nikolas Tavlarios.

In December 2013, Aegean completed the acquisition of Hess Corp's U.S. East Coast bunkering business, and Tavlarios noted that it has now successfully integrated the newly acquired East Coast business.

The firm has also sold four "non-core" vessels and completed the construction of its Fujairah storage facility.

"We are excited about the forthcoming commencement of storage operations in Fujairah in the second half of 2014, and believe we have additional opportunities to expand our market share," added Tavlarios.

Last month former Chemoil Corporation VP Gregg Schwartz joined Aegean in New York as Director of Strategic Development.