Aegean Posts Another Big Jump in Bunker Volumes for 2Q 2016

Aegean Marine Petroleum Network Inc. today announced its 2Q 2016 financials

Aegean Marine Petroleum Network Inc. [NYSE: ANW] (Aegean) today announced its 2Q 2016 financials, indicating bunker volumes for the period were up almost 30 percent over 2015, helping it to a record adjusted EBITDA of $37.9 million.

With 4,092,789 metric tonnes (mt) of bunkers sold, the result for the second quarter ended June 30, 2016, brings total sales for the first half of 2016 to 8,305,425 mt, and 15.7 million mt for the trailing twelve months (TTM) to June 30, 2016, according to data provided alongside today's earnings call.

This compares favourably to the 13.5 million mt, 11.3 million mt, and 9.9 million mt for calendar years 2015, 2014, and 2013 respectively.

"We generated strong operational and financial results in the quarter and are pleased with the momentum we have going into the second half of the year. During the second quarter we increased sales volumes and improved performance in many key markets, including our new operations in South Africa and Brazil," commented Aegean President E. Nikolas Tavlarios.

"Our top- and bottom-line results benefitted from our initiatives to strengthen our global platform and optimize our geographic footprint."

Aegean also announced it had sold two "non-core vessels" as well as "strategically relocated certain vessels from lower-activity markets to higher-growth regions."

During the earning call, Tavlarios noted it redeployed a bunkering tanker into the South African market, while Ship & Bunker sources indicated Aegean pulled two barges from Fujairah at the end of July, a market that Tavlarios earlier this year said was "facing headwinds due to low prices and Iranian oil which has flooded the market with supply."

Commenting on the results, Spyros Gianniotis, Aegean's Chief Financial Officer, said: "During the quarter, we achieved strong adjusted EBITDA per metric ton of marine fuel sold of $9.26, a 43.8% increase quarter over quarter. While we achieved strong results across the board, we believe adjusted EBITDA per metric ton of marine fuel sold best reflects our operational improvements.

"In the second quarter we also reported a 29.9% year over year increase in volumes and improved performance without increase in operating expenses.

"The two vessel sales during the quarter enabled us to pay down $5 million of debt and is expected to help eliminate approximately $6.4 million in operating costs on an annual basis."

Looking ahead, Tavlarios said there were "strong indications of continued growth" for the reminder of 2016, and having posted around 1.35 million mt in July 2016, 3Q 2016 was also expected to see over 4 million mt of bunkers sold.