UPDATE: Dahlman Rose Downgrades Aegean Marine Petroleum Network To Hold

Aegean Marine Petroleum ANW has outlined a strategy to improve its business: it plans to expand its presence in Cape Verde in 1Q11, add 2 service centers by 3Q11, add the first of 3 new onshore storage facilities in Morocco in 2H11, sell 2-3 bunkering vessels along with 2 floating storage tankers, and redeploy bunkering vessels to more profitable areas within its existing footprint. While Dahlman views these steps positively, uncertainty remains as to the timing and efficacy. Dahlman Rose is tempering its view on volume growth based on vessel repositioning and sales. Dahlman is forecasting 2011 volumes at 12.8MM tons, versus 13.9MM tons previously and expects 2012 volumes to increase to 13.1MM tons versus a prior estimate of 14.3MM tons. Dahlman Rose is forecasting a 2011 spread of $17.60/ton, in line with 2H10, and modeling an improvement in 2012 to $19.30/ton. Dahlman reduces its rating to Hold as management works to optimize its business. ANW is trading lower at $8.93