The series of events leading up to investigations against New York-listed Aegean Marine Petroleum Network (Aegean) has resulted in maritime credit analysis firm Ocean Intelligence (OI) having ‘little choice’ but to downgrade the former’s credit rating, it says.
“Questions certainly need to be asked about what took place,” Simon Millar, Managing Analyst, Ocean Intelligence told Manifold Times in a response to an earlier article.
“In March this year Aegean stated that it made allowances for doubtful debts of USD 11.18 million at end-2017, and it now has bad debts of USD 200 million.
“These are somewhat different amounts of money.”
An internal audit conducted by the new management at Aegean uncovered approximately $200 million of accounts receivable owed to the company at December 31, 2017 by four counterparties that need to be written off.
The amounts, owned by the similar parties, accumulated from approximately $172 million as of December 31, 2016 and $85 million as of December 31, 2015.
The news prompted the market to respond in a largely negative manner; share prices of Aegean fell $2.03 from $2.85 per share on June 4, 2018 to $0.82 per share on June 5, 2018 representing a decline of about 71% on Tuesday.
“However, from a business perspective, bunker market participants are far more concerned with what’s going to happen to Aegean from here onwards,” says Millar who added OI last downgraded Aegean’s credit rating to "Credit a matter of trust in principals" in the middle of May 2018.
Aegean’s credit rating before the May downgrade was at USD high-seven figures, reduced from USD low-eight figures in early 2017.
“There is a frenzy of speculation in the sector, much of which is relatively baseless,” he notes.
“Until some clarity emerges, we have little choice but to downgrade Aegean to "Trading not advised on any basis".
A timeline-accurate list of events preceding the current development can be found below:
Related: Aegean shares down 71%, to face legal investigations
Related: Aegean audit uncovers $200 million account discrepancy
Related: Aegean unfolds several business developments
Related: Aegean drops founder, elects new board members
Related: Aegean requests for ‘additional time’ to file annual report
Related: Aegean welcomes new Chief Financial Officer
Related: Lawsuit filed against Aegean’s H.E.C. acquisition
Related: Aegean to offer ‘one-stop-shop solution’ with H.E.C. acquisition
Related: Aegean in $367 million acquisition of port reception facilities services group
Related: Aegean shareholders ‘gravely concerned’ over board’s silence
Related: Shareholders nominate ‘highly qualified’ candidates to Aegean board
Related: Aegean Marine Petroleum Network under shareholder pressure
Publication date: 7 June, 2018
Singapore can help less developed countries in SouthEast Asia through ‘piloting and scaling fuels and technology as well as a leading hub for green finance’, said DNV Group President and CEO Remi Eriksen.
Octamar™ Ultra HF, Octamar™ Complete, and Octamar™ F35C were found to have improved the fuel economy while reducing exhaust gas and other emissions of marine engines in a series of trials, states report.
Disposal of evidence has resulted in Singapore not being able to provide full details to the United Nationals Panel of Experts which sought information regarding the case, says Ministry of Foreign Affairs.
‘We are proud to be amongst the first to show the successful steps taken by Singapore’s bunkering ecosystem to remain forward thinking and relevant,’ Choong Sheen Mao, Director of EMF, tells Manifold Times.
‘With the launch of a common data infrastructure, Kenoil aims to continue achieving an end to end visibility and transparency on the bunker data supply chain,’ states Kenoil Managing Director.
Digitalization can help shipping achieve its decarbonization goals but only if human factors are considered enough when introducing smarter maritime operations with ‘user-friendly’ technology.