Aegean President Jonathan Mcilroy. Image Credit: Aegean
Aegean Marine Petroleum Network Inc. [NYSE: ANW] (Aegean) today announced it expects to report a net loss of approximately $28.2 million, or a loss of $0.69 per share, for the fourth quarter of 2017.
However, Jonathan McIlroy, Aegean's President, cautioned that the headline numbers "do not tell the full story" as the company continued its programme of cost cutting.
Aegean notes the fourth quarter result was impacted by approximately $14.5 million of non-recurring charges, including $4.5 million in cash charges related to legal, tax and advisory fees and $10.0 million in non-cash charges related to tax and other matters.
"The fourth quarter of 2017 was also impacted by approximately $12 million of losses as a result of the Company's first in, first out (FIFO) reporting method of inventory cost that created a mismatch when compared to the mark-to-market of the Company's respective hedges at December 31, 2017. This loss was recovered in January 2018 when inventory was sold at market prices (and not at cost) and the hedges were closed at market," the company explained.
Jonathan Mcilroy, President, Aegean
Our expected fourth quarter headline results do not tell the full story of the cost cutting and bold steps we have taken
Jonathan McIlroy, Aegean's President, commented, "Despite what has continued to be a challenging period in our core business, I am proud of the definitive action our management team has taken to offset market weakness. Our expected fourth quarter headline results do not tell the full story of the cost cutting and bold steps we have taken - such as ceasing our physical supply business in Singapore during the quarter.
"While business was slower to come back in the wake of third quarter's severe hurricane season and refinery outages in Mexico, our core business showed signs of modest improvement from third quarter's results. 2018 is likely to be another tough year for our core business, but Aegean is amidst a transformation that we firmly believe will unlock significant value for all shareholders over time."
Aegean says it plans to release its 4Q 2017 results on Wednesday, March 7, 2018, after the close of market trading. The Company will hold a conference call during which it will discuss fourth quarter results in more detail on Thursday, March 8, 2018, at 8:30 A.M. Eastern Time.