Aegean Marine Petroleum Network Inc. Announces Plan to Expand Storage Capacity
Company to Build In-Land Storage Facility Totaling Three Million Barrels in the United Arab Emirates
PIRAEUS, Greece, April 27 /PRNewswire-FirstCall/ -- Aegean Marine Petroleum Network Inc. (NYSE: ANW) today announced that it plans to build an in-land storage facility in the United Arab Emirates (UAE) after entering into a 25-year terminal lease agreement, which includes an option for an additional 25 years, with the Municipality of Fujairah.
Construction of the new facility, which will total approximately three million barrels in capacity, is expected to be completed within the next 18 to 24 months. Aegean Marine intends to lease a portion of the facility upon completion to a third party, which is expected to generate incremental income in addition to the Company's core physical supply operations. Currently, Aegean Marine operates one in-land storage facility located in the U.K. In seeking to capitalize on the increasing worldwide demand for in-land storage, the Company also has an onshore storage facility currently under development in Jamaica and another in Morocco, where Aegean Marine maintains exclusive storage rights. In addition to its in-land storage facilities, the Company continues to operate four double-hull tankers that are used as floating storage. Including the new facilities in the UAE, Jamaica and Morocco, Aegean Marine's total capacity for the worldwide storage of marine fuel is expected to exceed seven million barrels.
E. Nikolas Tavlarios, President, commented, "Our plan to build a new in-land storage facility is consistent with our plan to further grow sales volumes in the United Arab Emirates, the third largest bunkering market in the world, and strengthen our ability to provide superior customer service. As we strategically increase our dedicated in-land storage capacity, we plan to draw upon our revolving credit facilities and seek alternative debt financing to fund this important long-term project. By once again expanding Aegean Marine's infrastructure for the global supply of marine fuel from procurement to delivery, we expect to strengthen our industry leadership and increase our future earnings potential."
About Aegean Marine Petroleum Network Inc.
Aegean Marine Petroleum Network Inc. is an international marine fuel logistics company that markets and physically supplies refined marine fuel and lubricants to ships in port and at sea. The Company procures product from various sources (such as refineries, oil producers, and traders) and resells it to a diverse group of customers across all major commercial shipping sectors and leading cruise lines. Currently, Aegean has a global presence in more than 15 markets, including Vancouver, Montreal, Mexico, Jamaica, Trinidad and Tobago, West Africa, Gibraltar, U.K., Northern Europe, Piraeus, Patras, the United Arab Emirates, Singapore, Morocco and the Antwerp-Rotterdam-Amsterdam (ARA) region.
Cautionary Statement Regarding Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include 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 Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "intend," "anticipate," "estimate," "project," "forecast," "plan," "potential," "may," "should," "expect" and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. 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. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include our ability to manage growth, our ability to maintain our business in light of our proposed business and location expansion, our ability to obtain double hull secondhand bunkering tankers, the outcome of legal, tax or regulatory proceedings to which we may become a party, adverse conditions in the shipping or the marine fuel supply industries, our ability to retain our key suppliers and key customers, material disruptions in the availability or supply of crude oil or refined petroleum products, changes in the market price of petroleum, including the volatility of spot pricing, increased levels of competition, compliance or lack of compliance with various environmental and other applicable laws and regulations, our ability to collect accounts receivable, changes in the political, economic or regulatory conditions in the markets in which we operate, and the world in general, our failure to hedge certain financial risks associated with our business, our ability to maintain our current tax treatments and our failure to comply with restrictions in our credit agreements and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
SOURCE Aegean Marine Petroleum Network Inc.
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