Aegean Marine Petroleum Network Inc. (ANW) has been on a buying spree over the last 12 months, snapping up smaller tanker filling operations that have been struggling to grow profits. Because of the scale of Aegean, it is able to purchase its fueling supplies on a wholesale level and then pass along the costs to its customers.

Aegean Marine Petroleum Network, Inc operates as a marine fuel logistics company that provides ships at port and sea with refilling services. The company was founded in 1995, carries a market cap. of $1.59 billion and is headquartered in Athens, Greece.

An Impressive Quarter

With global energy trade booming, service providers to this industry have seen a big up tick in their sales numbers, which was the case when Aegean reported its second-quarter results on May 14.

Revenue was up big, increasing 149% from the same period last year to $532 million. Net income came in at $7.5 million, up from $6.6 million last year. This produced earnings of 18 cents per share, one penny short of analyst expectations.

Factors Driving Growth

Aegean noted that a couple of its key projects had come online during the quarter and began producing revenue. The projects include Aegean’s new service center in Northern Europe, a product of its acquisition of Bunkers at Sea in October of 2007, and a newly established service center in West Africa.

This brings the total number of ports that Aegean is operating to 8, with an eye to adding two more by the end of the year to bring the total to 10.

The company said it experienced a big increase in demand, having sold 47.6% more marine fuel than it did in the same quarter last year.

Bullish Estimates

Analysts are bullish on the longer term prospects of AEG as it continues to snap up smaller companies and grow its capacities. The current-year estimate is $1.23, but the next-year estimate currently stands at $2.63, a very big one-year jump. Based upon this earnings projection, this stock looks very reasonably priced, carrying a forward P/E multiple of 14X.

The Chart

Aegean’s share price has rebounded admirably from its January low below $16 to its current price of $38. The next target appears to be the short-term resistance level just above $43. If this stock can advance past this level, its 52-week and all-time high are close at hand, just above $48.

Content Courtesy: Zacks Investment Research

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