aegean marine q1 2013 earnings presentation

AEGEAN MARINE PETROLEUM NETWORK INC. 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 www.ampni.com. 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.

AEGEAN MARINE PETROLEUM NETWORK INC.

HIGHLIGHTS

• Sales Volumes decreased 3.8% to 2,367,077 in Q1 2013 compared to Q1 2012.

• Gross Profit decreased 7.4% to $70.7 million in Q1 2013 compared to Q1 2012.

• Recorded EBITDA of $21.0 million.

• Net Income increased 19.7% to $7.2 million or $0.15 basic and diluted earnings per share in Q1 2013 compared to Q1 2012. – Net Income adjusted for the sale of non-core assets was $6.3 million or

$0.14 basic and diluted earnings per share.

• Continued enhancement of operating expense structure through sale of Aegean Tulip and Aeolos.

• Signed agreement for Fujairah financing.

• Sale of interest in Panama storage facility.

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SELECTED FINANCIALS

4

Year-on-Year Comparison

1q12 1q13 YoY %

Sales Volumes (MT) 2,461,230 2,367,077 -3.8%

Gross Profit $76,401 $70,723 -7.4%

EBITDA $22,532 $20,115 -10.7%

Operating Income $13,405 $12,426 -7.3%

Net Income $6,005 $6,280 4.6%

Quarter-on-Quarter Comparison

4q12 1q13 QoQ %

Sales Volumes (MT) 2,729,070 2,367,077 -13.3%

Gross Profit $71,849 $70,723 -1.6%

EBITDA $20,082 $20,115 0.2%

Operating Income $13,037 $12,426 -4.7%

Net Income $5,092 $6,280 23.3%

(1) All amounts are in thousands of USD unless otherwise specified. (2) Gross Profit = Total Revenue – Total Cost of Sales (3) All figures adjusted for one-time loss/gain on sale of vessels, subsidiary

(2)

(2)

(1) (3)


EBITDA

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

2005 2006 2007 2008 2009 2010 2011 2012 TTM as of 3/31/13

$,0

00

5

Note: Figures are adjusted for one-time gain/loss on sale of assets, subsidiary


Built-in Fleet Capacity to Further Scale Business

• Modern fleet consisting of 66 (57 owned and 9 chartered) bunkering vessels including a specialty tanker and 3 owned floating storage vessels

• Average age of fleet is 10 years, with 32 vessels less than 5 years old

• Modern vessels equipped with:

– Segregated cargo tanks allowing for transportation of multiple grades of fuel

– High-capacity fuel pumps

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Aegean Fleet

Current Average Size Average Age % Double Hull

Number of Vessels/Barges 66 5,000 dwt 10 years 87%

0

20

40

60

80

2006 2007 2008 2009 2010 2011 2012

Fleet Size and Hull Type

Double Hull Single Hull


Continued Progress Marketing & Distributing Marine Lubricants

- 5,000

10,000 15,000 20,000 25,000 30,000

2007 2008 2009 2010 2011 2012 TTM as of

3/31/13

Lubricant Volume (mt)

7

• ALFA marine lubricants part of a comprehensive solution for Aegean customers

• Product availability in more that 550 ports worldwide

• Estimated annual global market size of 2mm metric tons


GROSS PROFIT DRIVERS

$-

$5

$10

$15

$20

$25

$30

$35

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Gro

ss S

pre

ad p

er M

etri

c To

n

Sale

s V

olu

me

(mt)

Volumes Gross Spread

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UTILIZATION

30

32

34

36

38

40

42

44

46

0

100

200

300

400

500

600

1q10 2q10 3q10 4q10 1q11 2q11 3q11 4q11 1q12 2q12 3q12 4q12 1q13

Vo

lum

e

(met

ric

ton

s d

eliv

ered

per

ves

sel p

er d

ay)

Utilization Fleet

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(1) Utilization is measured as volume (in metric tons) delivered per average number of

ocean-going bunkering vessel per day. Utilization data does not include inland and estuary barge utilization figures

(2) Figures adjusted to exclude non-operating (off-hire) days caused by both scheduled and unscheduled maintenance requirements and charter hire days

(3) Fleet size for utilization calculation refers to ocean-going bunkering tankers exclusively

(4) Assumes 360 operating work days per vessel per year, 38 ocean-going bunkering vessels and a flat utilization run-rate for the trailing twelve month period on non-ocean going inland and estuary barge vessels

(1)

(3)

(2)

Volume Sensitivity Analysis

MT Delivered per Vessel per Day Total Annual Sales Volume (mt)

400 9,200,000

500 10,750,000

600 11,950,000

700 13,500,000

800 15,200,000

(4)


PROFITABILITY

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

Gross Profit EBITDA Margin

10

(1) EBITDA Margin is calculated as EBITDA divided by Gross Profit. (2) EBITDA figures are adjusted for gains/losses on sale of non-core assets

(1,2,)


WORKING CAPITAL

0

5

10

15

20

25

30

35

1q10 2q10 3q10 4q10 1Q11 2Q11 3Q11 4q11 1q12 2q12 3q12 4q12 1q13

Day

s

DIO

DSO

DPO

CCC

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(1) DIO= Days Inventory Outstanding, DSO= Days Sales Outstanding, DPO= Days Payable Outstanding, CCC= Cash Conversion Cycle


Balanced Capital Allocation Strategy Drives Shareholder Value Creation

Key Balance Sheet Data as of March 31, 2013

Cash $ 61,716

Trade Receivables (net) 479,250

Inventory 174,474

Other Current Assets 59,556

Trade Payables (277,708)

Trade Finance Debt (396,407)

Fixed Asset Debt (205,948)

Net Debt $ 105,067

Fixed Assets $ 569,357

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• Financial flexibility and balanced capital allocation strategy position Aegean to return value to shareholders while continuing to invest in growth

• One million share repurchase plan in place • Built in fleet capacity allows for flexible, strategic market reactions

• Solid financial foundation to manage commodity price fluctuations • $1.4 billion in working capital and supplier credit allows Aegean Marine to manage volatile marine

fuel prices and procure large quantities of supply at a discount relative to competitors

(1)

(1) Net Debt = Total current assets – Trade Payables, Trade Credit Financing, Fixed Asset and Corporate Debt


Financial Flexibility to Invest in Growth and Return Capital to Shareholders

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• Significant Financial Liquidity with over $1 Billion in Available Credit

– Ability to better manage commodity price fluctuations

– Bulk purchases provide pricing power relative to competitors

• Superior Financing Terms on Newbuild Vessels

– Reduces cost of capital and improves profitability

• Strong Capital Structure – Net Debt of $105 million

– Fixed asset debt to ttm EBITDA of 2.2x 75

300 320

420

706

943 968

883

$-

$200

$400

$600

$800

$1,000

$1,200

At IPO 2007 2008 2009 2010 2011 2012 1q13

Working Capital Facilities (,000)


Creating Long Term Value by Entering New Markets, Diversifying Revenue and Enhancing Flexibility

• Strategically expanding global footprint, driving business revenues and increasing global market share

• Scalable global network allows for increased asset utilization and flexibility as macro conditions improve

• Strategically located storage capacity diversifies business by providing opportunities to generate substantial income from leasing storage space to third parties

• Strengthening integrated marine fuel logistics chain via strategic expansion and disposition of older non-core assets

– 10 vessels sold to date yielding a savings of approximately $20m in annual operating expense

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Strategically Improving Geographic Mix

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Start-Up Acquisitions

West Africa 1Q 2008 Northern Europe – Bunkers at Sea 4Q 2007

Patras 1Q 2009 United Kingdom – Portland 4Q 2007

Tanger-Med 1Q 2009 Vancouver, Montreal, Mexico – ICS 3Q 2008

Trinidad and Tobago 2Q 2009 Amsterdam, Rotterdam, Antwerp – Verbeke 1Q 2010

Cape Verde 1Q 2011 Las Palmas 2Q 2010

Panama 2Q 2011

Tenerife 2Q 2011

Hong Kong 3Q 2012

Barcelona 2Q 2013

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

3 4 5 7

11 14

16 19 20 21 Geographic Markets +


Unique Offerings with Global Reach and Diverse Customer Base

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Tankers

Containers Bulkers

Car Carriers

Cruise Ships

Chemical Tankers

Reefers LPG/LNG

Other

S a l e s b y C l i e n t S e c t o r

• Aegean’s customers include commercial shipping companies, cruise lines, marine fuel traders and brokers as well as oil majors

• Strong, diverse customer base, sophisticated credit management systems and a global footprint mitigate counterparty and market risk and provide top-line predictability

• No customer accounts for more than 10% of total revenues

Piraeus / Patras

Gibraltar

U.A.E.

Jamaica

Singapore

Hong Kong U.K.

Vancouver

Trinidad

Morocco

N.W.E.

Canary Islands

Panama

1 Q 1 3 V o l u m e b y M a r k e t


Streamlining Cost Structure and Leveraging Fixed Costs

• Successfully reduced operating expenses in three

consecutive quarters

• Sale of ten older, non-core vessels yields approximately

$20m in annual operating savings

• Movement from floating to land based storage capacity

mitigates costly ongoing operating and maintenance

expense while enhancing purchasing power and providing

additional revenue streams

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Global Storage Capacity Enhances Purchasing Power and Product Availability

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STORAGE

Location Type Capacity

Fujairah Expected completion 4Q13

Land 465,000 m3

Jamaica Available development site

Land 80,000 m3

Portland Land 40,000 m3

Tanger-Med Land 218,000 m3

Las Palmas Land 65,000 m3

Barcelona Land 52,000 m3

APPROXIMATE TOTAL Land 920,000 m3

Fujairah Floating 83,890 dwt

Mediterranean Floating 19,894 dwt

Amsterdam- Rotterdam-Antwerp Floating 2,500 dwt

APPROXIMATE TOTAL Floating 106,284 dwt

• Enhanced, stable product availability in key markets

• Augmented buying power via bulk purchases

• Generate incremental income through leasing of excess storage space to third-parties


Well-Positioned to Benefit from Positive Macro Trends

• Global GDP growth forecast of 3.3% and 4.0% in 2013 and 2014 respectively

• Emerging Markets GDP growth of 5.3% and 5.7% in 2013 and 2014 respectively.

• Global marine market to expand 5% to 6% annually through 2015

• Continued expansion of world seaborne trade and world fleet driving demand for all grades of marine fuel

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0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

-

20,000

40,000

60,000

80,000

100,000

120,000

Bu

nke

r D

eman

d (

,00

0 m

t/ y

ear)

Glo

bal

GD

P (

USD

Tri

llio

ns)

World GDP and Bunker Demand

World GDP Bunker Demand

(1) IMF “World Economic Update April 2013 (2) IHS Global Insight (3) HSBC

(1)

Source: IEA, EPA, Company Estimates

(2)

(1)


Uniquely Positioned to Drive Profitability

• Well-positioned to capitalize on emerging trends

• Poised for long-term, sustainable growth; immune to many headwinds facing shipping industry

• Diversified revenue streams, market leadership and operational infrastructure create significant barriers to entry

• Track record of strong financial results

• Capital allocation strategy focused on driving shareholder value

• Creating long term value by entering new markets and further diversifying revenue

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aegean marine q1 2013 earnings presentation

Documents

diverse customer

fixed asset

creating long

gaap financial

operating

diversifying

fleet capacity

financial