Storage terminal operator
Vopak has announced that net profit attributable to holders of ordinary shares - excluding exceptional items - decreased by 5% to EUR 162.5 million during the first six months of 2013, compared to EUR 171.1 million during the corresponding period in 2012.
Group operating profit before depreciation and amortization (EBITDA) - excluding exceptional items - amounted to EUR 384.5 million, versus EUR 380.1 million in the first six months of 2012. Group operating profit (EBIT) - excluding exceptional items - was EUR 280.3 million, representing a decrease of EUR 2 million on the EUR 282.3 million achieved between January and June last year.
Commenting on the results,
Eelco Hoekstra, Chairman of the Executive Board and CEO of Royal Vopak said: "The first half year of 2013 was characterized by an overall healthy demand for our storage services throughout our terminal network in North America, Asia and the Middle East. However, we continued to see a challenging crude oil and gasoil storage market affecting the Rotterdam area (Netherlands), as well as uncertainty in the biofuel market. We realized an EBITDA -excluding exceptional items- of EUR 384.5 million in the first half year of 2013, which is in line with the same period in 2012 and included a number of positive non-recurring items during the first half year of 2013. For the remainder of 2013, we expect similar market circumstances as in the first half year of 2013 and we expect to reach an EBITDA -excluding exceptional items- at constant currencies of between EUR 730-780 million for the full year 2013.
"We remain confident in the long-term outlook for our business. We keep focusing on improving our frontline execution and our competitive position in order to continue providing our services in the safest, most sustainable and efficient manner for our clients. In addition, the dynamics we experience in energy markets drive our continuous effort to further align Vopak’s terminal network with long-term market developments. Vopak seeks to further improve its global network by upgrading and expanding its existing terminal infrastructure to best serve current client needs, as well as investing in new terminals in selected product-market combinations. Over the last six months, we have added new capacity in, among other locations, Banyan (Singapore) and Algericas (Spain). During the same period, we have also recently divested two relatively small terminals, one in the Netherlands and a joint venture in China, as part of the continuous drive to further align our terminal network with long-term market developments.
"Vopak will mark 400 years of existence in 2016. Based on current projects under construction and potential opportunities for further expansion of Vopak’s network of terminals, it is our ambition to realize an EBITDA -excluding exceptional items- of EUR 1 billion in 2016. In order to achieve this ambition, among other factors, the identification, approval and successful and timely execution of additional profitable expansion projects, our continued ability to manage our cost base, and a continuation of the operational efficiency at our existing terminals are required. While we continue to have a range of potential projects under consideration, we remain committed to the capitaldisciplined execution of our growth strategy.”
Outlook
In its outlook for the remainder of 2013, Vopak said it expects 'similar market circumstances' as in the first half year of 2013. As a result, Vopak expects an EBITDA - excluding exceptional items - at constant currencies of between EUR 730-780 million for the full year 2013.
Projects under construction are expected to add 4.6 million cubic metres (cbm) of Storage Capacity in the years up to and including 2015. The total investment for Vopak and partners in expansion projects involves capital expenditure of approximately EUR 1.7 billion, of which Vopak’s total remaining cash spend is expected to be approximately EUR 0.4 billion. The completion of these expansion projects is expected to result in a worldwide Storage Capacity of approximately 35.0 million cbm by the end of 2015.
