Aegean Marine Petroleum Network Inc. Second Quarter 2008 Earnings Call Presentation August

Transcription

1 Aegean Marine Petroleum Network Inc. Second Quarter 2008 Earnings Call Presentation August

2 Disclosure Today s presentation and discussion will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Words such as expects, anticipates, intends, estimates, or similar expressions are intended to identify these forward-looking statements. These statements are based on Aegean Marine Petroleum Network Inc. s current plans and expectations and involve risks and uncertainties that could cause future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual results to differ include our future operating or financial results, our ability to manage growth, adverse conditions in the marine fuel supply industries, and increased levels of competition. For further information, please refer to Aegean Marine Petroleum Network Inc. s reports and filings with the Securities and Exchange Commission. 2

3 Agenda 2q08 and YTD Highlights Company Financial Overview Industry Q&A Appendix 3

4 2q08 and YTD Highlights 4

5 2q08 and YTD Highlights Increased sales volumes to 1,232,438 metric tons in Q and 2,292,572 metric tons for the six months ended June 30, Generated gross spread on marine petroleum products of $39.3 million in Q and $71.0 million for the six months ended June 30, Recorded operating income of $12.4 million in Q and $20.9 million for the six months ended June 30, Recorded net income of $9.9 million, or $0.23 basic and diluted earnings per share, in Q and $17.4 million, or $0.41 basic and diluted earnings per share for the six months ended June 30, Adjusted net income for Q2 2008, which excludes certain nonrecurring legal expenses related to Aegean s new U.K. service center, was $10.8 million, or $0.25 basic and diluted earnings per share. Further expanded international marine fuel logistics infrastructure. Commenced physical supply operations in the U.K. on April 1, Took delivery of three double-hull bunkering tanker newbuildings. On July 1, 2008, completed the acquisition of ICS Petroleum, a leading Vancouver-based marketer and physical supplier of marine fuel in Canada and Mexico, increasing global network of service centers to nine. 5

6 Company 6

7 Company: Overview MARKETS 1 Vancouver 8 2 Mexico Montreal Jamaica 5 West Africa/Ghana 6 Gibraltar 7 U.K./Portland Northern Europe 9 Greece/Piraeus 10 U.A.E/Fujairah 11 Singapore CORPORATE Athens Headquarters New York Executive Office Miami Business Development Major Shipping Lanes ASSETS Bunkering Vessels Bunkering Vessels On-order Barges RoRo Vessels Storage (1) (1) (1) Detailed asset overview listed in Appendix. (2) 2 nd RoRo to be delivered to the Company in 4q08. 7

8 Company: Expansion Markets Greece Gibraltar U.A.E. Jamaica Singapore Northern Europe U.K. West Africa Canada Mexico Major Events Aegean founded by Mr. Dimitris Melisanidis. Commenced operations in Gibraltar. Commenced operations in U.A.E. Commenced operations in Jamaica. Commenced operations in Singapore. IPO on NYSE, raised $200mm. Mr. Peter Georgiopoulos elected Chairman. Mr. E. Nikolas Tavlarios named President. Acquired Portland Bunkers International Ltd. Acquired Bunkers-at-Sea Launched Alfa Marine Lubricants. Set-up business development office in Miami. Commenced operations in West Africa. Acquired ICS Petroleum Ltd. 8

9 Company: Capacity Growth Bunkering Fleet (1) 50 # of Vessels CAGR = 34.1% e 2009e 2010e SH DH (1) Includes both vessels and barges. 9

10 Financial Overview 10

11 Financial Overview: Selected Data Year-on-Year Comparison 2q07 2q08 YoY % Sales Volumes (MT) 795,282 1,232, % Gross Spread per MT ($/MT) $25.11 $ % Gross Spread on MPP $20,016 $39, % Operating Income $7,102 $12, % Proforma Net Income $6,003 $10, % Net Income $7,047 $9, % Quarter-on-Quarter Comparison 1q08 2q08 QoQ % Sales Volumes (MT) 1,060,134 1,232, % Gross Spread per MT ($/MT) $29.65 $ % Gross Spread on MPP $31,626 $39, % Operating Income $8,486 $12, % Proforma Net Income $8,000 $10, % Net Income $7,501 $9, % 11

12 Financial Overview: Sales Volumes 1,400,000 1,200,000 Volumes Sold (MT) 1,000, , , ,000 CAGR = 42.5% 200, q06 2q06 3q06 4q06 1q07 2q07 3q07 4q07 1q08 2q08 12

13 Financial Overview: Gross Spreads $35 $600 Gross Spread per MT $30 $25 $20 $15 $10 $5 $500 $400 $300 $200 $100 Cost of M arine Fuel $0 $0 1q06 2q06 3q06 4q06 1q07 2q07 3q07 4q07 1q08 2q08 Gross Spread per MT Avg. Cost of Marine Fuel 13

14 Financial Overview: Utilization and Fixed Costs Utilization per Vessel (in MTs) Fixed Costs per MT Sold V o lu m e D e liv e r e d p e r V e s s e l p e r D a y q06 2q06 3q06 4q06 1q07 2q07 3q07 4q07 1q08 2q08 Reported Adjusted (1) $/MT 2q06 3q06 4q06 1q07 2q07 3q07 4q07 1q08 2q08 Bunker Vessel OPEX G&A Expenses Storage Costs (1) Adjusted figure excludes non-operating (off-hire) days caused by both scheduled and unscheduled maintenance requirements; Aegean began monitoring this metric in 1q08. 14

15 Financial Overview: Working Capital Cash Conversion Cycle 40 1q08 2q08 Core non-cash net working capital (1) $151,085 $176,282 Average marine fuel cost prices per MT $465.0 $562.3 Sales volume of marine fuel in MT 1,060,134 1,232,438 Average age of inventory (days) Average age of trade receivables (days) Average age of trade payables (days) Days Outstanding q06 1q07 2q07 3q07 4q07 1q08 2q08 DIO DRO DPO CCC (1) Core non-cash working capital is in thousands of USD and includes trade receivables, inventories, and trade payables. 15

16 Financial Overview: Balance Sheet Data ASSETS LIABILITIES & EQUITY Cash and Cash Equivalents $16,056 Short-term Debt $143,130 Current Assets 451,945 Current Liabilities 387,793 Fixed Assets 283,885 Long-term Debt 112,202 Other Non-Current Assets 27,141 Total Liabilities 500,555 Total Assets 762,961 Stockholders Equity 262,406 16

17 Industry 17

18 Industry: Marine Fuel Prices Bunker Fuel against Crude Oil (1) Marine fuel prices continued to rise (following crude) posting a quarteron-quarter increase of approximately 20%. Bunker fuel tends to lag movements in crude. Further stresses the need for working capital amongst physical suppliers. Driving suppliers (as exhibited by the majors) to decrease credit exposure by reducing their credit days to customers. Correlation between bunker fuel and crude is 96.0%. (2) (1) For comparison reasons, cude oil has been converted into a $ per metric ton price. (2) Data from Clarksons Research Services. Bunker fuel is Singapore 380 CST. 18

19 Industry: Supply/Demand Fundamentals Supply-side IMO MARPOL Regulation 13H bans single-hull tankers between 500 and 5,000 dwt from carrying heavy-grade oil; goes into effect in Demand-side The orderbook for all vessel types (with expected deliveries out to 2012/2013) remains robust at approximately 9,883 ships; this represents close to 50% of the current world s fleet. Projected World Bunkering Vessel Fleet (2) (1) # of Vessels Single-hull Double-hull (1) Clarkson Research Services. (2) Lloyd s Marine Intelligence Unit and Aegean. 19

20 Q&A 20

21 Appendix 21

22 Appendix: Logistics Overview MARKETS DELIVERY ASSETS Bunkering Vessels Barges 1 Vancouver 2 2 Mexico 3 Montreal 4 Jamaica 3 STORAGE ASSETS Floating Storage Facilities 5 West Africa/Ghana Gibraltar 5 1 Onshore Storage Facilities 7 U.K./Portland Northern Europe 3 9 Greece/Piraeus 3 10 U.A.E./Fujairah Singapore 5 TOTAL

23 Appendix: Delivery Capabilities BUNKERING VESSELS Current Fleet Vessels on Order Expected Fleet as of March, 2010 Expected % Change Number of Vessels % Total Capacity (dwt) 142, , , % Avg. Size per Vessel (dwt) 5,462 4,588 5, % Avg. Year Built 1993 n/a 2002 n/a Avg. Age in Years 14.8 n/a % % of Fleet DH 88.5% 100.0% 94.0% +6.3% Number of Barges 2 Total Capacity (dwt) 5,600 Avg. Size per Barge(dwt) 2,800 Avg. Year Built 1993 Avg. Age in Years 15.5 BARGES ROLL-ON/ROLL-OFF SPECIALTY TANKERS Number of Vessels 1 1 Total Capacity (dwt) 2,400 2,400 Avg. Size per Vessel 2,400 2,400 % of Fleet DH 100.0% 100.0% 23

24 Appendix: Storage (1) STORAGE FLOATING STORAGE Number of Vessels 3 Total Capacity (dwt) 219,850 Avg. Size per Vessel 73,283 Avg. Year Built 1983 Avg. Age in Years 25.0 % of Fleet DH 100.0% ONSHORE STORAGE Number of Facilities 1 Total Capacity (m^3) 40,000 (1) Aegean utilizes storage facilities in a few of its markets in order to smooth-out any potential supply disruptions. 24

25 Appendix: Current Delivery Fleet Vessel Name Service Center Hull / Type Year Built DWT 1 P.T. 25 Vancouver SH / Barge ,000 2 P.T. 36 Vancouver SH / Barge ,600 3 Aegean Force Jamaica DH / Vessel ,679 4 Vera Jamaica SH / Vessel ,720 5 Hope Jamaica DH / Vessel ,597 6 Aegean Tulip West Africa DH / Vessel ,853 7 Aegean VII West Africa SH / Vessel ,892 8 Aegean IX West Africa SH / Vessel ,999 9 Amorgos Gibraltar DH / Vessel , Aegean Rose Gibraltar DH / Vessel , Aegean Daisy Gibraltar DH / Vessel , Aegean XI Gibraltar DH / Vessel , Mykonos Gibraltar DH / Vessel , Aegean X U.K. DH / Vessel , Sara Northern Europe DH / Vessel , Aegean Princess Northern Europe DH / Vessel , Syros Northern Europe DH / Vessel , Aegean III Piraeus DH / Vessel , Aegean VIII Piraeus DH / Vessel , Aegean XII Piraeus DH / Vessel , Aegean Flower Fujairah DH / Vessel , Aegean Pride I Fujairah DH / Vessel , Kithnos Fujairah DH / Vessel , Aegean Tiffany Singapore DH / Vessel , Serifos Singapore DH / Vessel , Aegean Breeze I Singapore DH / Vessel , Milos Singapore DH / Vessel , Kimolos Singapore DH / Vessel ,641 (1) (1) Geographic deployment represents either current or planned. 25

26 Appendix: Newbuilds On-order Vessel Name Vessel Type Shipyard Size (dwt) Delivery 1 Patmos Bunkering Tanker Hyundai, China 5,500 3q DN Bunkering Tanker Fujian, China 4,600 3q QHS 221 Bunkering Tanker Hyundai, China 5,500 3q SN-223 Oceangoing Oil Tanker / Ro Ro Cargo Severnav, Romania 2,400 4q DN Bunkering Tanker Fujian, China 4,600 4q DN Bunkering Tanker Fujian, China 4,600 4q QHS 207 Bunkering Tanker Hyundai, China 5,500 1q QHS 208 Bunkering Tanker Hyundai, China 5,500 1q QHS 209 Bunkering Tanker Hyundai, China 5,500 2q QHS 210 Bunkering Tanker Hyundai, China 5,500 2q QHS 215 Bunkering Tanker Hyundai, China 5,500 2q QHS 216 Bunkering Tanker Hyundai, China 5,500 3q QHS 217 Bunkering Tanker Hyundai, China 5,500 3q QHS 222 Bunkering Tanker Hyundai, China 5,500 3q QHS 223 Bunkering Tanker Hyundai, China 5,500 4q QHS 224 Bunkering Tanker Hyundai, China 5,500 4q DN Bunkering Tanker Fujian, China 4,600 4q DN Bunkering Tanker Fujian, China 4,600 4q QHS 225 Bunkering Tanker Hyundai, China 5,500 4q DN Bunkering Tanker Fujian, China 4,600 1q QHS 226 Bunkering Tanker Hyundai, China 5,500 1q DN Bunkering Tanker Fujian, China 4,600 1q DN Bunkering Tanker Fujian, China 4,600 1q QHS 227 Bunkering Tanker Hyundai, China 5,500 1q QHS 228 Bunkering Tanker Hyundai, China 5,500 1q 2010 (1,2) (1) Delivery schedule as per shipyard. (2) Aegean owns options to purchase 2+2 2,400dwt oceangoing specialized tankers / roro cargo from Severnav Shipyard- not included in the schedule above. 26