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

(1)

Aegean Marine Petroleum Network Inc.

Second Quarter 2008 Earnings Call Presentation

(2)

Disclosure

Today’s presentation and discussion will contain forward-looking statements within the

meaning of the Private Securities Litigation Reform Act of 1995. 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

2 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.

(3)

Agenda

2q08 and YTD Highlights

Company

Financial Overview

Industry

3 Industry

Q&A

Appendix

(4)

2q08 and YTD Highlights

4

(5)

2q08 and YTD Highlights

Increased sales volumes to 1,232,438 metric tons in Q2 2008 and 2,292,572 metric tons for the six

months ended June 30, 2008.

Generated gross spread on marine petroleum products of $39.3 million in Q2 2008 and $71.0 million for

the six months ended June 30, 2008.

Recorded operating income of $12.4 million in Q2 2008 and $20.9 million for the six months ended June

30, 2008.

5 Recorded net income of $9.9 million, or $0.23 basic and diluted earnings per share, in Q2 2008 and

$17.4 million, or $0.41 basic and diluted earnings per share for the six months ended June 30, 2008.

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, 2008.

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.

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Company

6

(7)

Company:

Overview

MARKETS

1 Vancouver

2 Mexico

3 Montreal

4 Jamaica

5 West Africa/Ghana

6 Gibraltar

7 U.K./Portland

8 Northern Europe

1

2

3

4

6

7

8

9

10

11

7 Major Shipping Lanes

8 Northern Europe

9 Greece/Piraeus

10 U.A.E/Fujairah

11 Singapore

CORPORATE

Athens

Headquarters

New York

Executive

Office

Miami

Business

Development

(1) Detailed asset overview listed in Appendix. (2) 2nd_{RoRo to be delivered to the Company in 4q08.}

5

11

11 ASSETS

Bunkering Vessels

Bunkering Vessels On-order

Barges

RoRo Vessels

Storage

26

24

2

4

(1) (1)

(8)

Company:

Expansion

M

a

rk

e

ts

Greece

Gibraltar

U.A.E.

Jamaica

Singapore

Northern Europe

U.K.

West Africa

Canada

Mexico

1995

1998

2001

2005

2006

2007

2008

M

a

jo

r E

v

e

n

ts

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,

Acquired Portland Bunkers

International Ltd.

Acquired Bunkers-at-Sea

Launched Alfa Marine

Commenced operations in

West Africa.

Acquired ICS Petroleum Ltd.

8 M

a

jo

r E

v

e

n

ts

Melisanidis.

IPO on NYSE,

raised $200mm.

Mr. Peter

Georgiopoulos

elected Chairman.

Mr. E. Nikolas

Tavlarios named

President.

Launched Alfa Marine

Lubricants.

Set-up business

development office in

Miami.

(9)

Company:

Capacity Growth

30

40

50 #

o

f

V

e

s

e

ls

CAGR = 34.1%

Bunkering Fleet

(1)(1)

9

0

10

20 2006

2007

2008e

2009e

2010e

#

o

f

V

e

s

e

ls

SH

DH

(10)

Financial Overview

10

(11)

Financial Overview:

Selected Data

Year-on-Year Comparison

2q07

2q08

YoY %

Sales Volumes

(MT)

795,282

1,232,438

55.0%

Gross Spread per MT

($/MT)

$25.11

$31.71

26.3%

Gross Spread on MPP

$20,016

$39,329

96.5%

Operating Income

$7,102

$12,434

75.1%

Proforma Net Income

$6,003

$10,797

79.9%

11 Proforma Net Income

$6,003

$10,797

79.9%

Net Income

$7,047

$9,887

40.3%

Quarter-on-Quarter Comparison

1q08

2q08

QoQ %

Sales Volumes

(MT)

1,060,134

1,232,438

16.3%

Gross Spread per MT

($/MT)

$29.65

$31.71

6.9%

Gross Spread on MPP

$31,626

$39,329

24.4%

Operating Income

$8,486

$12,434

46.5%

Proforma Net Income

$8,000

$10,797

35.0%

(12)

Financial Overview:

Sales Volumes

1,000,000

1,200,000

1,400,000

V

o

lu

m

e

s

S

o

ld

(

M

T

)

CAGR = 42.5%

12

0 200,000

400,000

600,000

800,000

1q06 2q06 3q06 4q06 1q07 2q07 3q07 4q07 1q08 2q08

V

o

lu

m

e

s

S

o

ld

(

M

T

)

(13)

Financial Overview:

Gross Spreads

$15

$20

$25

$30

$35

G

ro

s

S

p

re

a

d

p

e

r

M

T

$300

$400

$500

$600

C

o

s

t o

f M

a

rin

e

F

u

e

l

13 $0

$5

$10

$15

1q06 2q06 3q06 4q06 1q07 2q07 3q07 4q07 1q08 2q08

G

ro

s

S

p

re

a

d

p

e

r

M

T

$0

$100

$200

C

o

s

t o

f M

a

rin

e

F

u

e

l

(14)

Financial Overview:

Utilization and Fixed Costs

500

600

700

800 V

o

lu

m

e

D

e

li

v

e

re

d

p

e

r

V

e

ss

e

l

p

e

r

D

a

y

Utilization per Vessel

(in MTs)

$

/M

T

Fixed Costs per MT Sold

14

0

100

200

300

400 1q06 2q06 3q06 4q06 1q07 2q07 3q07 4q07 1q08 2q08

V

o

lu

m

e

D

e

li

v

e

re

d

p

e

r

V

e

ss

e

l

p

e

r

D

a

y

Reported

Adjusted

(1)(1)

(1) Adjusted figure excludes non-operating (off-hire) days caused by both scheduled and unscheduled maintenance requirements; Aegean began monitoring this metric in 1q08.

2q06

3q06

4q06

1q07

2q07

3q07

4q07

1q08

2q08

$

/M

T

(15)

Financial Overview:

Working Capital

25

30

35

40 D

a

y

s

O

u

ts

ta

n

d

in

g

Cash Conversion Cycle

1q08

2q08

Core non-cash net working capital

$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

(1) (1)

15

0

5

10

15

20 4q06

1q07

2q07

3q07

4q07

1q08

2q08

D

a

y

s

O

u

ts

ta

n

d

in

g

DIO

DRO

DPO

CCC

Sales volume of marine fuel in MT

1,060,134

1,232,438

Average age of inventory

(days)

18.0

14.8 Average age of trade receivables

(days)

31.6

36.4 Average age of trade payables

(days)

24.1

30.0

(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

16 Fixed Assets

283,885 Long-term Debt

112,202

Other Non-Current Assets

27,141 Total Liabilities

500,555

(17)

Industry

17

(18)

Industry:

Marine Fuel Prices

Marine fuel prices continued to rise

(following crude) posting a

quarter-on-quarter increase of

approximately 20%.

Bunker Fuel against Crude Oil

(1)(1)

Bunker fuel tends to lag

movements in crude.

18 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.

(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.

Correlation between bunker fuel and crude is 96.0%.

(2) (2)

(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 2008.

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.

4000

Projected World Bunkering Vessel Fleet

(2)(2)

(1) (1)

19

2994 1167 ₁₀₅₀ 945 ₈₅₀ 765 428 511 585 ₆₄₇ 709 ₇₇₆

0

500 1000

1500

2000

2500

3000

3500

2007

2008

2009

2010

2011

2012

#

o

f V

e

ss

e

ls

Single-hull

Double-hull

(1) Clarkson Research Services.

(20)

Q&A

20

(21)

Appendix

21

(22)

Appendix:

Logistics Overview

MARKETS

DELIVERY ASSETS

STORAGE ASSETS

Bunkering

Vessels

Barges

Floating

Storage

Facilities

Onshore

Storage

Facilities

1 Vancouver

2

2 Mexico

22

3 Montreal

4 Jamaica

3

5 West Africa/Ghana

3

1

6 Gibraltar

5

1

7 U.K./Portland

1

8 Northern Europe

3

9 Greece/Piraeus

3

10 U.A.E./Fujairah

3

1

11 Singapore

5 TOTAL

26

2

3

1

(23)

Appendix:

Delivery Capabilities

BUNKERING VESSELS

Current

Fleet

Vessels on

Order

Expected Fleet as

of March, 2010

Expected

% Change

Number of Vessels

26

24

50 +92.3%

Total Capacity

(dwt)

142,019

110,100

252,119

+77.5%

Avg. Size per Vessel

(dwt)

5,462

4,588

5,042

-7.7%

Avg. Year Built

1993

n/a

2002

n/a

Avg. Age in Years

14.8 n/a

8.5 -42.9%

% of Fleet DH

88.5%

100.0%

94.0%

+6.3%

23 BARGES

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 ROLL-ON/ROLL-OFF SPECIALTY TANKERS

Number of Vessels

1

1 Total Capacity

(dwt)

2,400

Avg. Size per Vessel

2,400

(24)

Appendix:

Storage

STORAGE

FLOATING STORAGE

Number of Vessels

3 Total Capacity

(dwt)

219,850

Avg. Size per Vessel

73,283

Avg. Year Built

1983

(1) (1)

24 Avg. Age in Years

25.0 % of Fleet DH

100.0%

ONSHORE STORAGE

Number of Facilities

1 Total Capacity

(m^3)

40,000

(25)

Appendix:

Current Delivery Fleet

Vessel Name

Service Center

Hull / Type

Year Built

DWT

1 P.T. 25 Vancouver SH / Barge 1988 2,000

2 P.T. 36 Vancouver SH / Barge 1997 3,600

3 Aegean Force Jamaica DH / Vessel 1980 6,679

4 Vera Jamaica SH / Vessel 1985 3,720

5 Hope Jamaica DH / Vessel 1980 10,597

6 Aegean Tulip West Africa DH / Vessel 1993 4,853

7 Aegean VII West Africa SH / Vessel 1984 3,892

8 Aegean IX West Africa SH / Vessel 1976 4,999

9 Amorgos Gibraltar DH / Vessel 2007 4,627

10 Aegean Rose Gibraltar DH / Vessel 1988 4,935

11 Aegean Daisy Gibraltar DH / Vessel 1988 4,935

12 Aegean XI Gibraltar DH / Vessel 1984 11,050 (1) (1)

25

12 Aegean XI Gibraltar DH / Vessel 1984 11,050

13 Mykonos Gibraltar DH / Vessel 2008 4,623

14 Aegean X U.K. DH / Vessel 1982 6,400

15 Sara Northern Europe DH / Vessel 1990 7,389

16 Aegean Princess Northern Europe DH / Vessel 1991 7,030

17 Syros Northern Europe DH / Vessel 2008 4,600

18 Aegean III Piraeus DH / Vessel 1990 2,972

19 Aegean VIII Piraeus DH / Vessel 1990 2,972

20 Aegean XII Piraeus DH / Vessel 1979 3,660

21 Aegean Flower Fujairah DH / Vessel 2001 6,523

22 Aegean Pride I Fujairah DH / Vessel 1982 11,538

23 Kithnos Fujairah DH / Vessel 2007 4,600

24 Aegean Tiffany Singapore DH / Vessel 2004 2,747

25 Serifos Singapore DH / Vessel 2007 4,664

26 Aegean Breeze I Singapore DH / Vessel 2004 2,747

27 Milos Singapore DH / Vessel 2007 4,626

28 Kimolos Singapore DH / Vessel 2008 4,641

(26)

Appendix:

Newbuilds On-order

Vessel Name

Vessel Type

Shipyard

Size (dwt)

Delivery

1 Patmos Bunkering Tanker Hyundai, China 5,500 3q 2008

2 DN-3500-8 Bunkering Tanker Fujian, China 4,600 3q 2008

3 QHS 221 Bunkering Tanker Hyundai, China 5,500 3q 2008

4 SN-223 Oceangoing Oil Tanker / Ro Ro Cargo Severnav, Romania 2,400 4q 2008

(1,2) (1,2)

26

(1) Delivery schedule as per shipyard.

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

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