Aegean Marine Petroleum Network Inc. Fourth Quarter 2008 Earnings Call Presentation February

Transcription

1 powering the world Aegean Marine Petroleum Network Inc. Fourth Quarter 2008 Earnings Call Presentation February

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 ...powering the world 3

4 Agenda Highlights Financial Overview Industry Strategy Q&A Appendix 4

5 Highlights 5

6 Highlights Increased sales volumes to 1,568,770 metric tons in Q and 5,200,256 metric tons for the full year. Expanded net revenues to $51.6 million in Q and $170.9 million for Generated gross spread on marine petroleum products of $47.7 million in Q and $161.0 million for the full year. Recorded operating income of $18.3 million in Q and $52.1 million for the full year. Reported adjusted net income, which excludes a $1.0 million tax expense, of $14.1 million, or $0.33 basic and diluted earnings per share for Q Net Income for the quarter was $13.1 million, or $0.31 basic and diluted earnings per share. Net Income for the full year was $39.9 million, or $0.94 basic and diluted earnings per share. Continued expanding global presence and infrastructure: Announced expansion into Trinidad and Tobago (Southern Caribbean) and Tangiers (Morocco), increasing our presence to 13 markets worldwide. Took delivery of seven double-hull bunkering tanker newbuildings in 2008 and year-to-date in Acquired four double-hull bunkering tankers and two bunkering barges in the secondary market in 2008 and year-to-date in Implemented a $25 million stock repurchase program. 6

7 Financial Overview 7

8 (1) Financial Overview: Selected Financials Year-on-Year Comparison 4q07 4q08 YoY % Sales Volumes (MT) 1,026,395 1,568, % (4) Gross Spread per MT ($/MT) $28.41 $30.21 / $ % / +14.3% (2) Net Revenue $32,634 $51, % Operating Income $8,816 $18, % (3) Adjusted Net Income $7,755 $14, % Net Income $6,255 $13, % Quarter-on-Quarter Comparison 3q08 4q08 QoQ % Sales Volumes (MT) 1,338,914 1,568, % Gross Spread per MT ($/MT) $32.75 $30.21 / $ % / -0.8% (2) Net Revenue $46,384 $51, % Operating Income $15,057 $18, % (3) Adjusted Net Income $10,521 $14, % Net Income $9,455 $13, % (4) (4) (4) (1) All amounts are in thousands of USD unless otherwise specified. (2) Net Revenues= Total Revenues - Cost of Goods Sold - Cargo Transportation Costs (3) Adjusted Net Income excludes non-recurring items (4) Gross spread per metric ton calculation pre FX translation adjustment. 8

9 Financial Overview: Net Revenue Drivers 1,750,000 $40.0 (in metric tons) Sales Volumes 1,500,000 1,250,000 1,000, , ,000 Sales Volumes CAGR = 47.3% $37.5 $35.0 $32.5 $30.0 $27.5 $25.0 $ Gross Spread per Metric Ton 250,000 $ q06 1q07 2q07 3q07 4q07 1q08 2q08 3q08 4q08 $20.0 Volumes Gross Spread (1) (1) Gross spread per metric ton calculation changed in the fourth quarter 2008 to reflect FX translation adjustment. 9

10 Financial Overview: Company-wide Utilization (1,2) 800 Volu ume (metric tons delivered d per vessel per day) q06 1q07 2q07 3q07 4q07 1q08 2q08 3q08 4q08 Gross Adjusted (1) Utilization is measured as volume (in metric tons) delivered per vessel per day. (2) Adjusted figure excludes non-operating (off-hire) days caused by both scheduled and unscheduled maintenance requirements; Aegean began monitoring this metric in 1q08. 10

11 (1,2) Financial Overview: Market-specific Utilization 1100 Volume (metric tons del elivered per vessel per day) Singapore U.A.E. Greece Northern Europe U.K. Gibraltar West Africa Jamaica Vancouver 4q06 1q07 2q07 3q07 4q07 1q08 2q08 3q08 4q08 (1) Utilization is measured as volume (in metric tons) delivered per vessel per day. (2) Figures are not adjusted for non-operating days. 11

12 Financial Overview: Volume Analysis $ per MT Sold 4q06 1q07 2q07 3q07 4q07 1q08 2q08 3q08 4q08 Bunker Vessel OPEX G&A Expenses Operating Income Bunker Vessel OPEX ex fuel Storage Costs 12

13 Financial Overview: Profitability (1,2) $60, % $50,000 Net Revenues CAGR = 45.8% 48.0% 46.0% Net Revenue (in thousands) $40,000 $30,000 $20,000 $10, % 42.0% 40.0% 38.0% 36.0% 34.0% EBITDA % Margin 32.0% $0 4q06 1q07 2q07 3q07 4q07 1q08 2q08 3q08 4q % Net Revenues EBITDA Margin (1) Net Revenues= Total Revenues - Cost of Goods Sold - Cargo Transportation Costs (2) EBITDA Margin is calculated as EBITDA (excluding any FX-related gains/losses) divided by Net Revenue. 13

14 Financial Overview: Working Capital (1) Cash Conversion Cycle Days Outstan nding q06 1q07 2q07 3q07 4q07 1q08 2q08 3q08 4q08 DIO DPO DRO CCC (1) DIO= Days Inventory Outstanding, DRO= Days Receivable Outstanding, DPO= Days Payable Outstanding, CCC= Cash Conversion Cycle 14

15 (1) Financial Overview: Balance Sheet Data ASSETS LIABILITIES and SE Cash and Cash Equivalents $46,927 Short-term Debt $99,352 Current Assets 251,387 Current Liabilities 202,022 Fixed Assets 349,380 Long-term Debt 154,269 Other Non-Current Assets 41,140 Other Non-Current Liabilities 613 TOTAL LIABILITIES $356,904 STOCKHOLDERS EQUITY $285,003 TOTAL ASSETS $641,907 TOTAL LIABILITIES & SE $641,907 (1) As of December 31,

16 Industry 16

17 Industry: Review Capital Access Status Industry Effect Aegean Limited Increased risk to the funding of operations (working capital) and capex. Renewed credit facility in January Ample liquidity to fund growth. Leading to charges. Sophisticated credit Credit (to customers) Higher risk control systems has mitigated bad-debt loss. Marine Fuel Prices Lower/ Volatile Reduction in working capital requirements. Harder to manage price movements. Experienced purchasing and sales teams successfully manage client demand and product sourcing. Single-hull Phase-out In-effect All E.U. ports are now double-hull. Fully compliant. 17

18 Industry: Supply Fundamentals Projected World Bunkering Vessel Fleet (1) IMO MARPOL Regulation 13H bans single-hull tankers between 600 and 5,000 dwt from carrying heavy-grade oil; regulations went into effect beginning # of Vessels s Single-hull Double-hull (1) Lloyds MIU 18

19 Industry: Regulations Aegean s Markets Size (mm of tons) 1 Singapore U.A.E Regulations Single-hulls allowed to operate until their 25 th anniversary. Current owners/operators of double-hull vessels are eligible for waivers on certain port fees. Single-hulls allowed to operate until their 25 th anniversary but no later than end-of Gibraltar 4.0 Only double-hulls allowed to operate. 4 Greece 4.0 Only double-hulls allowed to operate. 5 Trinidad & Tobago (Southern Caribbean) West Africa 3.0 (1) No new single-hulls allowed to enter market. Ghana allows single-hulls to operate subject to receiving approval. Moving towards adopting regulation. 7 Vancouver 1.0 Single-hulls allowed to operate until end-of U.K. 1.0 Only double-hulls allowed to operate. (2) 9 Northern Europe 0.6 Only double-hulls allowed to operate. 10 Jamaica 0.6 No single-hull restrictions are currently in-place. 11 Mexico 0.3 Single-hulls allowed to operate until end-of Montreal 0.3 Single-hulls allowed to operate until end-of Tangiers n/a Only double-hulls allowed to operate. Aegean s Markets 65.3 Global Market Size (1) Bunkerworld and Company information (2) Niche market (non ARA region) 19

20 Strategy 20

21 Strategy: New Markets Market Competitive Landscape Single-hull Regulation Key Strengths Expected Commencement Tangiers (Morocco) Low Only double-hulls allowed to operate Strategic location Planned regional hub Aegean, sole bunkering operator 2q09 21

22 Strategy: New Markets Market Size Competitive Landscape Single-hull Regulation Key Strengths Expected Commencement Trinidad & Tobago 3.5mm MT (Southern Caribbean) Medium Only double-hulls allowed to enter market 2q09 Strategic location Transshipment Hub Local supply agreement 22

23 Strategy: Global Reach Northern Europe (2007) Vancouver (2008) Montreal (2008) New York Gibraltar (1998) U.K. (2008) Athens / Greece (1995) Mexico (2008) Miami Jamaica (2005) Tangiers (2009e) U.A.E (2001) Trinidad & Tobago (2009e) West Africa (2008) Singapore (2006) Markets Headquarters Executive / Finance / Sales Business Development 23

24 Strategy: Delivery Fleet Growth (1) # of Ves ssels Current count is 32. (as of February 2009) CAGR= 34.1% e 2010e SH DH (1) Delivery fleet includes both vessels and barges. 24

25 Strategy: Diversification Aegean s Sales Breakdown by Client Sector (1) Tankers Containerships Bulkers Car Carriers Cruise Ships Chemical Tankers Reefers LPG/LNG Other (1) Approximate percentages. 25

26 Strategy: Credit 26

27 Strategy: Marine Lubricants Marine Lubricants Size of Global Market Market Dynamics Aegean s Entrance into Market 2007 (1) Sealub Alliance Network Oils used by vessels to reduce friction in engines and machines. 2mm metric tons Dominated by the majors Group formed by Gulf Oil Marine to market and distribute marine lubricants globally. Aegean joined Sealub in February Other members include PetroChina, Ipiranga (Brazil), and SK (South Korea). Presence in over 450 ports in 40 countries. (1) Aegean estimates 27

28 Appendix 28

29 Appendix: Logistics Infrastructure DELIVERY FLEET Current On Order Projected in 2010 % Change Number of Vessels/Barges % Total Capacity (dwt) 164, , , % Avg. Size per Vessel/Barge (dwt) 5,137 5,275 5, % Avg. Year Built 1996 n/a 2002 n/a Avg. Age in Years 13.5 n/a % % of Fleet DH 87.5% 100.0% 92.3% +5.5% ROLL-ON/ROLL-OFF / SPECIALTY TANKERS Number of Vessels 1 1 Total Capacity (dwt) 2,454 2,400 % of Fleet DH 100.0% 100.0% Number of Vessels 1 Total Capacity (dwt) 546 Number of Facilities 5 Capacity of Floating Storage (dwt) 224,849 Capacity of Onshore Storage (m^3) 40,000 (1) SPECIAL PURPOSE VESSELS STORAGE FACILITIES (2) (1) Delivery Fleet includes both vessels and barges. (2) Special Purpose Vessels are small bunkering tankers (circa 1,000 dwt) which are utilized for in-port operations only and hence are not included in utilization calculations. 29

30 Appendix: Current Delivery Fleet (1) Vessel Name Market Hull / Type Year Built DWT Vessel Name Market Hull / Type Year Built DWT 1 Aegean Force Jamaica DH / Vessel , Aegean Flower Fujairah DH / Vessel ,523 2 Vera Jamaica SH / Vessel , Aegean Pride I Fujairah DH / Vessel ,538 3 Hope Jamaica DH / Vessel , Kithnos Fujairah DH / Vessel ,600 4 Aegean Tulip West Africa DH / Vessel , Patmos Fujairah DH / Vessel ,283 5 Aegean VII West Africa SH / Vessel , Serifos Singapore DH / Vessel ,664 6 Amorgos Gibraltar DH / Vessel , Naxos Singapore DH / Vessel ,600 7 Santorini Gibraltar DH / Vessel , Milos Singapore DH / Vessel ,626 8 Aegean XI Gibraltar DH / Vessel , Kimolos Singapore DH / Vessel ,641 9 Mykonos Gibraltar DH / Vessel , Paros Singapore DH / Vessel , Aegean X U.K. DH / Vessel , P.T. 25 Vancouver SH / Barge , Sara Northern Europe DH / Vessel , P.T. 36 Vancouver SH / Barge , Aegean Princess Northern Europe DH / Vessel , Syros Northern Europe DH / Vessel , Aegean Daisy Piraeus DH / Vessel , Aegean III Piraeus DH / Vessel , Aegean Rose Piraeus DH / Vessel , Aegean VIII Piraeus DH / Vessel , Aegean XII Piraeus DH / Vessel , Aegean Breeze I Piraeus DH / Vessel , Aegean Tiffany Piraeus DH / Vessel , Aegean Ace Piraeus DH / Vessel ,615 (1) Geographic deployment represents either current or planned. 30

31 Appendix: Newbuild Delivery Schedule (1,2,) Vessel Name Vessel Type Shipyard Size (dwt) Delivery 1 SN-223 Oceangoing Oil Tanker / Ro Ro Cargo Severnav, Romania 2,400 1q QHS 221 Bunkering Tanker Hyundai, China 5,500 1q QHS 207 Bunkering Tanker Hyundai, China 5,500 2q QHS 208 Bunkering Tanker Hyundai, China 5,500 2q QHS 209 Bunkering Tanker Hyundai, China 5,500 3q QHS 210 Bunkering Tanker Hyundai, China 5,500 3q QHS 215 Bunkering Tanker Hyundai, China 5,500 3q QHS 216 Bunkering Tanker Hyundai, China 5,500 3q QHS 217 Bunkering Tanker Hyundai, China 5,500 4q QHS 222 Bunkering Tanker Hyundai, China 5,500 4q 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 1q 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 2q QHS 228 Bunkering Tanker Hyundai, China 5,500 2q 2010 (1) Delivery schedule as per most recent shipyards reports. (2) Aegean owns options to purchase 2+2 2,400dwt oceangoing specialized tankers / roro cargo from Severnav Shipyard- not included in the schedule above. 31