World News
New Sulfur Regulations "Favourable" for Aegean
Aegean Marine Petroleum Network Inc. [NYSE: ANW] (Aegean) Tuesday said tightened sulfur regulations are having a "favourable" effect on the company's performance.
"Many companies in our industry lack in infrastructure to support the new sulfur grade requirements, which we believe, will be disruptive to their operations," said Aegean President E. Nikolas Tavlarios.
"Aegean however has strong cash flow, limited debt, and vessels that can support multiple fuel grades."
The comments were delivered on the company's earnings call to discuss 2014 performance.
In addition, lower sulfur bunkers are translating into better spreads.
"We are definitely seeing that those products are carrying a higher profit margin than the 1% sulfurs," said Tavlarios.
He added that bunker sales within ECAs accounted for around 20 percent of the company's business.
Ships operating within European and North American Emissions Control Areas (ECAs) have been required to burn bunkers with a sulfur content of no more than 0.10 percent by weight since January 1, this year.
Earlier this week, Aegean announced strong Q4 and full year results, saying 2014 was a "landmark year" for the company.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 655.50 | 2.00 | 808.50 | 4.50 |
| Rotterdam | 619.00 | 0.00 | 789.00 | 8.00 |
| Houston | 628.50 | 7.50 | 812.50 | 1.50 |
| Fujairah | 653.50 | 4.50 | 900.00 | 2.50 |
| Global 20 Ports Average | 672.00 | 0.50 | 885.00 | 7.00 |
| Global 4 Ports Average | 639.00 | 2.50 | 827.50 | 2.00 |
| Global Average Bunker Price | 727.50 | 1.50 | 933.50 | 5.00 |
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