Aegean Marine Petroleum Network Inc
Aegean Marine Petroleum Network — Jefferies Global Shipping and Logistics Conference 2010
34 slides from Aegean Marine Petroleum Network's conference presentation, Sep 8, 2010
Slide 1: Aegean Marine Petroleum Network Inc.
Aegean Marine Petroleum Network Inc. Jefferies Global Shipping and Logistics Conference September 8 th 2010
Slide 2: Safe Harbor Statement
Safe Harbor Statement Except for historical information contained herein, the statements in this presentation are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward- looking statements involve known and unknown risks and u
Slide 3: Powering the World…
Powering the World…
Slide 4: Investment Highlights
Investment Highlights Global brand representing safety, product quality and excellent service Diverse and high-quality customer base Demonstrated growth strategy resulting in significant sales volume and EBITDA growth Established presence in the top three bunkering markets worldwide Largest double-h
Slide 5: Agenda
Agenda Company Industry Strategy Financial Overview
Slide 6: Company
Company
Slide 7: Peter C. Georgiopoulos, Chairman of the Board, and management
Peter C. Georgiopoulos Chairman of the Board Chairman of Aegean since IPO (December 2006). Founder and Chairman of General Maritime (NYSE: GMR) Founder and Chairman of Genco Shipping and Trading (NYSE: GNK) Founder and Chairman of Baltic Trading Ltd (NYSE: BALT) GMR, GNK and BALT have returned over
Slide 8: Company at time of IPO, December 2006
New York Jamaica Gibraltar Fujairah Singapore Pireaus Company at time of IPO… Company: Aegean, December 2006
Slide 9: Company: Aegean Today
Vancouver Mexico Jamaica Trinidad & Tobago Gibraltar Northern Europe Antwerp Tangiers Piraeus / Patras West Africa Fujairah Singapore Portland Las Palmas Company: Aegean Today
Slide 10: Company: Business Overview
Global Reach Modern double hull fleet Integrated Service Capability Effective Credit Controls Tank storage in strategic locations Strong Customer Relationships Independent supplier of marine lubricants Company: Business Overview Aegean’s integrated supply model includes: Q2 2010 Volume Sold
Slide 11: A Sample Transaction
DAY 1 1 to 3 4 5 25 35 Receive client order Lock in sales price Lock-in purchase price Load bunkering tanker Physical delivery of fuel Pay supplier Receive payment Marketing, Sales and Procurement Physical Operations Working Capital Funding Strong brand name widely recognized and respected in the in
Slide 12: Aegean's Sales by Client Sector
Aegean’s Sales by Client Sector Approximate percentages. Diverse base of strong customers mitigates counterparty risks, providing top-line predictability In five years of operation, bad debt expense has totaled approximately $100,000 Strong relationships with international shipping companies, leadin
Slide 13: Industry
Industry
Slide 14: Industry: Attractive Fundamentals
PIRA Energy Group, July 2010 2010 global GDP growth forecasted between 3.8 and 4.2% China projected growth apx. 10.0% India projected growth apx. 8.8% Continued integration of China and East Asia into world economy will accelerate GDP growth Strong presence in emerging markets will allow Aegean to t
Slide 15: Industry: Dynamic Regulatory Landscape
Aegean is poised to benefit from regulatory changes Industry: Dynamic Regulatory Landscape MARPOL Annex I - Single-Hull Phase-Out Regulations for the prevention of pollution by oil Single-hull tankers to be phased-out of most markets by 2015 New markets adopting Phase-Out regulations MARPOL Annex VI
Slide 16: Single-Hull Phase-Out
Single-Hull Phase-Out Single-hull tankers to be phased-out of most markets by 2015 Results in dramatic vessel removals in bunkering suitable fleet Recent Developments… December 2009: South Korea bans single- hull vessels from all ports beginning in Russia has banned the use of single-hull tankers as
Slide 17: Industry: Low-Sulfur Regulation Timeline
Industry: Low-Sulfur Regulation Timeline Emission Control Area Potential Future Emission Control Areas 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% ECA GLOBAL Modern fleet featuring segregated tanks allows for sale of multiple fuel grades in a single delivery Significant financial liquidity enables Company t
Slide 18: Strategy
Strategy
Slide 19: Strategy
Penetrate new attractive markets with strong ship traffic Leverage global sales and operations network Own and operate the largest double-hull bunkering fleet in the world Increase scale through additional accretive acquisitions Expand distribution network for global supply of marine lubricants Stra
Slide 20: Strategy: Expansion into Strategic Locations
Strategy: Expansion into Strategic Locations Penetration into attractive markets driven by fleet expansion and access to credit… West Africa (Q1 2008) Vancouver, Montreal and Mexico via ICS Petroleum acquisition (Q3 2008) Patras - 2 nd largest market in Greece in terms of metric tons supplied (Q1 20
Slide 21: Strategy: Poised for Growth - Fleet Expansion
NEW BUILD & ACQUISITION FLEET Current On Order Q1 2011 Number of Vessels/Barges 63 9 72 (1) (2) New builds enter an environment of markedly lower supply Financing for all new builds has been secured at favorable rates 42% fleet growth CAGR since 2006 IPO Took delivery of 10 double hull bunkering ves
Slide 22: Strategy: Poised for Growth - Storage Expansion
Land Storage Location Type Total Capacity Fujairah* Land 500,000 m 3 Jamaica* Land 120,000 m 3 Portland Land 40,000 m 3 Tangiers* Land 230,000 m 3 Las Palmas Land 65,000 m 3 Floating Storage Location Type Total Capacity Ghana Floating 70,000 dwt Gibraltar Floating 80,000 dwt Fujairah Floating 70,000
Slide 23: Strategy: Stellar Reputation for Safety
The Aegean brand is associated with a reputation for safety Strategy: Stellar Reputation for Safety Stellar environmental record with no major environmental accidents Strong internal controls ensure compliance with international maritime laws Several important certifications from key international a
Slide 24: Strategy: Marine Lubricants
Marine Lubricants Oils used by vessels to reduce friction in engines and machines. Size of Global Market 2mm metric tons Market Dynamics Dominated by the majors Aegean’s Entrance into Market 2007 Sealub Alliance Network Group formed by Gulf Oil Marine to market and distribute marine lubricants globa
Slide 25: Strategy: Strong Liquidity Position
Strategy: Strong Liquidity Position Access to over $700 million in credit facilities $100 million credit facility secured in April 2010 with Fortis Nederland $50 million credit facility secured in April 2010 with Deutsche Bank Focused on expanding banking relationships and strengthening working capi
Slide 26: Recent Results
Recent Results
Slide 27: Financial Overview: EBITDA Growth
25% CAGR Financial Overview: EBITDA Growth
Slide 28: Financial Overview: Sales Volumes
57% CAGR Financial Overview: Sales Volumes
Slide 29: Financial Overview: Gross Spread per MT
$27 average spread per MT Financial Overview: Gross Spread per MT
Slide 30: Financial Overview: Fixed Cost per Metric Ton
Financial Overview: Fixed Cost per Metric Ton
Slide 31: Financial Overview: Selected Financials
Year-on-Year Comparison 2q09 2q10 YoY % Sales Volumes (MT) 1,498,937 2,825,046 +88.5% Net Revenue $47,210 $68,335 +44.8% EBITDA $24,362 $27,450 +12.7% Operating Income $17,613 $19,195 +9.0% Net Income $16,322 $12,025 -26.3% Adjusted Net Income $12,137 $14,209 +17.1% Quarter-on-Quarter Comparison 1q1
Slide 32: Financial Overview: Balance Sheet Data
ASSETS LIABILITIES and SE Cash and Cash Equivalents $52,061 Short-term Debt $320,630 Current Assets 679,999 Trade Payables 218,538 Fixed Assets 506,385 Long-term Debt 213,316 Other Non-Current Assets 70,900 Other current and non-current 28,202 TOTAL LIABILITIES $780,686 STOCKHOLDERS’ EQUITY $476,598
Slide 33: Investment Highlights
Investment Highlights Global brand representing safety, product quality and excellent service Diverse and high-quality customer base Demonstrated growth strategy resulting in significant sales volume and EBITDA growth Established presence in the top three bunkering markets worldwide Largest double-h
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