Aegean Increases Revenues 68.3% for 2007
For the year ended December 31, 2007, Aegean Marine Petroleum recorded net income of $27.7 million, or $0.65 basic and diluted earnings per share, compared to net income of $24.2 million, or $0.84 basic and diluted earnings per share, for the year ended December 31, 2006. The weighted average basic and diluted shares outstanding for the year ended December 31, 2007 were 42,417,111 and 42,505,704, respectively. The weighted average basic and diluted shares outstanding for the year ended December 31, 2006 were 28,954,521 and 28,954,622, respectively.
Total revenues for the year ended December 31, 2007 increased 68.3% to $1,352.9 million compared to $803.8 million for the prior year. Sales of marine petroleum products increased 70.2% to $1,345.8 million in 2007 compared to $790.7 million in 2006. For the year ended December 31, 2007, the volume of marine fuel sold increased by 45.2% to 3,437,269 metric tons compared to 2,367,289 metric tons in 2006, as sales volumes improved significantly in all of the Company's service centers except Greece, which had experienced disruptions stemming from a dockworkers union strike during late December 2006, resulting in a reduction of business in 2007. Sales volumes during 2007 also included sales volumes in Aegean's new service center in Northern Europe.
Operating income for the year ended December 31, 2007 increased 1.0% to $30.8 million compared to $30.5 million for the prior year. Operating income registered mild growth year over year as the 44.7% increase in the gross spread on marine petroleum products during 2007 was offset by higher operating expenses. Operating expenses increased due to growth in the fleet of bunkering tankers and floating storage facilities owned and operated by the Company and higher general and administrative costs associated with being a public company.
As of December 31, 2007, the Company had cash and cash equivalents of $10.0 million and working capital of $63.5 million. Non-cash working capital, or working capital excluding cash and debt, was $190.2 million as of December 31, 2007.
Ziad Nakhleh, Chief Financial Officer, stated, "Aegean's financial performance for the fourth quarter and fiscal 2007 reflects the success we have achieved in significantly growing our international marine fuel logistics infrastructure. The growth in our sales volumes and net revenues during 2007 was partially offset by expenditures made to upgrade and expand our central logistics infrastructure and organization. We believe that going forward we are better-positioned to translate additional volume growth into bottom line growth."
Mr. Nakhleh continued, "Regarding our capital structure, borrowings under our overdraft facilities were higher than expected as our average cost price of marine fuel increased by 67% during 2007. Increases in oil and gas prices impact the working capital financing needs for the industry as a whole. Our strong working capital base, including a new $300 million senior secured revolving credit facility, provides us an even higher advantage in the current credit environment."