World News
Aegean: "Conservative" Approach to Credit Limited Sales
Aegean Marine Petroleum [NYSE:ANW] (Aegean) says it is using a "conservative" approach to credit even though the policy limited its first quarter sales, the bunker supplier said during its Q1 2013 earnings call.
"One of our concerns is extending too much credit to people in this kind of environment," said Chairman Peter Georgiopoulos.
The company said it received 130,000 enquiries in 2012 and filed only 26,000, largely because it was concerned about extending too much credit.
Georgiopoulos said the company could have increased its sales for the quarter from 2.37 million tonnes to 3 million tonnes with a less careful approach.
"Could we have done 3 million tonnes in the quarter? Yes, we could have," he said.
"As the market gets better and as some of these shipping companies come out of their issues, I think it will be very easy for us to expand our tons, we've got the fleet to do it."
Georgiopoulos said the company could double the fuel it delivers on a per-ship basis.
"Right now the only limit on us selling more fuel is us, it's the management being conservative on credit," he said.
The company's sales fell 3.8 percent year-over-year for the quarter, but it said it has improved its position with measures including refocusing on core investments and establishing a global trade finance facility for improved liquidity.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 509.00 | 4.50 | 623.00 | 3.00 |
| Rotterdam | 463.00 | 7.00 | 623.50 | 2.00 |
| Houston | 471.50 | 4.50 | 627.50 | 3.50 |
| Fujairah | 501.00 | 4.50 | 714.00 | 1.00 |
| Global 20 Ports Average | 529.00 | 2.50 | 714.50 | 2.50 |
| Global 4 Ports Average | 486.00 | 3.00 | 647.00 | 2.50 |
| Global Average Bunker Price | 572.50 | 2.00 | 753.00 | 2.00 |
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