Aegean to Move Principal Office, Appoints New Chairman, Records "Stable" Q1 Result

Tuesday May 22, 2018

Aegean Marine Petroleum Network Inc. [NYSE:ANW] (Aegean) today made a raft of announcements as part of a general business update, including the unveiling of plans to move its principal office, the appointment of Donald Moore as Chairman of the Board, and a "stable operating result" for 1Q 2018.

The news follows events earlier this month that saw the bunker supplier resolve its ongoing differences with a group of critical shareholders, something that ultimately resulted in the company terminating a Consulting Agreement with Aegean founder Dimitris Melisanidis and the appointment of three new directors.

Today, Aegean said that one of those new directors, Donald Moore, has now been appointed to serve as Chairman of the Board. Moore recently served as Chairman of Morgan Stanley Group (Europe).

Noting the end of the deal with Melisanidis, Aegean says it is now planning to relocate its principal offices from its current location in a building he owns and operates.

"The Company expects the office relocation and related organizational changes to result in significant cost savings," the company said, without revealing where the new offices are to be located.

As for its Q1 performance, Aegean says it recorded "stable operating results" as "volumes and gross spreads were largely consistent with the fourth quarter of 2017, reflecting competitive industry conditions and the continued decision to restrain volumes in ports and lines of business with lower margin profiles."

Aegean had previously reported 2017 Q4 bunker sales of 3,511,023 metric tonnes (mt), down 11.6% year-over-year, and a 2017 Q4 loss of $28.6 million.

Among other announcements made by the company today, Aegean said it has received an expected notice from the New York Stock Exchange due to the delay in filing its Annual Report for the year ended December 2017.

Aegean said it was continuing to work through its annual reporting process but could not predict when it would be complete.

"The Company is pleased to have the continued support of its lenders and other stakeholders in connection with this process," Aegean noted.

"The Board of Directors has also directed management to conduct a comprehensive strategic and operational review focused on maximizing profitability and return on capital. This includes an evaluation of the Company's physical assets, existing footprint, and the capital efficiency of every business activity in which the Company is engaged and each port in which it operates."