AEGEAN MARINE PETROLEUM NETWORK INC. 2

Transcription

1

2 Cautionary Statement This presentation contains forward-looking statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements and we desire to take advantage of such safe harbor legislation. The forward-looking statements in this report are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Important assumptions relating to the forward-looking statements include, among other things, assumptions regarding demand for our products, the cost and availability of refined marine fuel from suppliers, pricing levels, the timing and cost of capital expenditures, competitive conditions, and general economic conditions. These assumptions could prove inaccurate. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. For a more comprehensive discussion of the risk factors affecting our business please see our Annual Report on Form 20-F and other reports filed with the U.S. Securities and Exchange Commission, a copy of which can be found on our website Unless required by law, we disclaim any obligation to update any forward-looking statements contained in this presentation, whether as a result of new information, future events, a change in our views or expatiations, to conform them to actual results or otherwise. In addition, this presentation contains unaudited financial information related to our financial statements. The information provided is for indicative purposes only. Unless required by law, we undertake no obligation to update or revise any such information. Non-GAAP Financial Measures Within this presentation, the Company makes reference to certain non-gaap financial measures, which have directly comparable GAAP financial measures as identified in this presentation. These non-gaap measures are provided because they are used as standard metrics by the investment community. We believe these measures will assist the investment community in properly assessing the underlying performance of the Company. 2

3 Today s Presenters Promoted to President as of July Joined Aegean in January 2016 and played a critical role in successfully expanding Aegean's back-to-back trading division driving growth across the global platform and expanding contracted volumes with major clients. Jonathan Mcilroy President 25 years of experience working with top ship operating clients, traders and third party physical suppliers in all major regional markets for shipping and bunkering globally and opened new marketing offices, recruited top talent and developed strategies to enhance performance in an ever changing global marketplace. Over 28 years of experience in shipping finance with major banks in both Greece and the USA. Spyros Gianniotis Chief Financial Officer Prior to joining Aegean, Mr. Gianniotis served as the Head of Shipping at Piraeus Bank SA, holding the title Assistant General Manager. Between 1989 and 2001, Mr. Gianniotis was at Citigroup, both in New York and Athens, holding a number of positions within corporate and shipping finance. 3

4 Market Overview and Developments Sustained low oil price oil environment Creates opportunities for smaller, less well capitalized players to compete for incremental tonnage creating margin pressure Continued weakness in shipping markets Fleet oversupply continues to depress freight rates In most market segments spot employment is predominant Vessel operators extremely cost conscious 4

5 Company Highlights Operational Highlights New leadership team focused on: Right sizing Aegean s global platform - Delivering on asset rationalization & optimization; Execute on our cost saving initiative; Capitalizing on key business development projects, and; Generation of new revenue streams that leverage Aegean s built-in capacity Second Quarter Financial Highlights Solid performance in a challenging market environment Achieved higher sales volume with improved profit margins vs. 1Q17 Reduced operational expenses & improved profitability 5

6 Financial Performance Who We Are

7 Performance at a Glance (1) TTM Sales Volume (millions metric tons) Net Income (millions USD) EPS (USD) EBITDA (millions USD) Free Cash Flow (millions USD) (141.2) (51.4) (52.1) Cash (millions USD) Net Debt (millions USD) EV to EBITDA Note: EV calculated using Net Debt (1) Figures adjusted for sale of non-core assets 7

8 Selected Financials (1) (2) (3) Year-on-Year Comparison 2q17 2q16 YoY % Sales Volumes (MT) 4,474,494 4,092, % (2) Gross Profit $82,246 $93,379 (11.9)% EBITDA $24,139 $37,896 (36.3)% Operating Income $16,166 $31,316 (48.4)% Net Income $1,656 $15,962 (89.6)% Quarter-on-Quarter Comparison 2q17 1q17 QoQ % Sales Volumes (MT) 4,474,494 4,450, % (2) Gross Profit $82,246 $80, % EBITDA $24,139 $21, % Operating Income $16,166 $13, % Net Income $1,656 $1, % (1) All amounts are in thousands of USD unless otherwise specified. (2) Gross Profit = Total Revenue Total Cost of Sales (3) Figures adjusted for one-time loss/gain on sale or impairment of assets as necessary. 8

9 Sales Volume (mt) Spread per Metric Ton Gross Profit Drivers 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 $30 $25 $20 $15 $10 $5 $- Volumes Gross Spread EBITDA per MT Note: Figures are adjusted for one-time gain/loss on sale of assets, subsidiary accelerated vesting of the shares of Aegean s founder METRICS Q Q Q Sales Volume (MT) 4,474,494 4,450,363 4,092,789 Gross Spread/MT $16.8 $16.3 $20.9 EBITDA/MT $5.39 $4.9 $9.3 9

10 Income Statement 2Q 2017 REVENUES Revenues - third parties $ 1,436,241 Revenues - related companies 4,418 Total revenues 1,440,659 COST OF SALES Cost of revenue - third parties 1,336,306 Cost of revenue - related companies 22,107 Total cost of sales 1,358,413 GROSS PROFIT 82,246 OPERATING EXPENSES Selling and distribution 53,058 General and administrative 12,854 Amortization of intangible assets 168 (Gain)/Loss on sale of vessels, net (67) Impairment charge - Total operating expenses 66,013 Operating income 16,233 OTHER INCOME/(EXPENSE): Interest and finance costs (14,786) Interest Income 70 Gain on sale of subsidiary, net - Foreign exchange gains, net 290 Income taxes (93) Net income 1,714 Net Income/(Loss) attributable to non-controlling interest (9) Net Income attributable to AMPNI $ 1,723 Earnings per common share, basic (U.S. dollars) $ 0.04 Earnings per common share, diluted (U.S. dollars) $ 0.04 Weighted average number of shares, basic 37,735,380 Weighted average number of shares, diluted 37,735,380 Higher volumes and improved gross spread contributed to higher gross profit by $1.9 million from previous quarter to $82.2 million. Despite higher expense by $2.6 million for the accounting treatment of share based compensation to personnel, all other expenses were reduced by $3.0 million compared to the previous quarter resulting in an operating income of $16.2 million. Interest expense increased to $14.8 million due to a decrease in the mark to market (MTM) of our 5 years interest rate swaps which however continue to be well in the money. The interest expense line contains $4.9 million of non cash items like amortizing bank fees, notes discount and the MTM of the interest rate swaps. This number in the previous quarter was $2.7 million. The above resulted in a slightly improved net income of $1.7 million that if adjusted for the above mentioned amounts results in $9.2 million non US GAAP net income. EBITDA $ 24,206 10

11 Millions Strong Liquidity & Capital Structure Debt Analysis 2Q17 Working capital debt $ 623,372 + Fixed asset debt 236,750 = Total Debt $ 860,122 Net Debt Aegean has a track record of solid global banking relationships Recently renewed $250mm facility for U.S. entity Currently working to renew the global facility Total Debt $ 860,122 + Trade payables 126,059 - Cash 82,481 - Trade receivables, net 559,813 - Inventory 219,764 - Other current assets 98,660 = Net Debt $ 25,463 Net Debt $140 $120 $100 $80 $60 $40 $20 $0 11

12 Strategic Initiatives 12

13 Strategic Initiatives Delivering on asset rationalization & optimization Optimizing presence in key operating hubs Maximize asset utilization and efficiency Moving assets within the Aegean network Selling / leasing assets to third parties Resulting in significant cost reduction Specific actions expected to generate annualized savings of $7 million as of Q Targeting another $13 million of cost reduction 13

14 Strategic Initiatives Concrete steps taken during the quarter Singapore 2 barges moved to cold lay-up, with both vessels under negotiation to be chartered out to 3rd party operators Reduced headcount by 15 linked to vessel ops and back office sides of the business Aegean remains a physical supplier in Singapore with a suppliers license fully compliant with the MPA model was changed to work through barging contracts for our deliveries Fujairah Fleet was reduced to two vessels 2 vessels placed in hot lay-up with options for their deployment under t/c to 3rd party operators Fleet Deployment 6 vessels placed out on profitable time charters with 3rd party operators worldwide 6 vessels in various states of lay-up with 4 of those vessels at advanced stages of negotiation for profitable mid-to-long term time charter employment at the close of the quarter ongoing rationalization of fleet deployment securing better utilization of operated barges in a number of core markets such as Gibraltar 14

15 Strategic Initiatives Generation of new revenue streams Sourcing & utilization of storage facilities Expanding into new markets o Launch of a new service center in the Port of Savannah o Inaugurated a trading team in Dubai of 2 experienced industry professionals to boost Aegean's presence in the Middle East. Commencement of ex-wharf sales on an FOB basis to other suppliers in the region o Deployed one trader direct into Taiwan as a representative office for Aegean to boost relationships and business with Taiwanese customers o Acquisition of OBAST Bunkering & Trading in Rostock (Q1 2017) contributing to our business in Germany Scalable Business Expansion without intensive Capex requirements o Several business development projects in the pipeline which will leverage Aegean s builtin capacity and global reach 15

16

17 Contact Details Company Aegean Marine Petroleum Network Inc. Tel Investor Relations/Media Advisor Nicolas Bornozis/Daniela Guerrero Tel Company Website 17