Fri 27 Feb 2015, 10:55 GMT

Vopak net profit down 21% in 2014


Terminal operator achieved a net profit of EUR 247.1 million in 2014. Revenues rose by 2% to EUR 1,322.5 million.



Terminal operator Royal Vopak has today confirmed that net profit attributable to owners of ordinary shares - including exceptional items - declined by 21 percent to EUR 247.1 million in 2014, down from EUR 312.7 million the previous year.

Net profit excluding exceptional items decreased by 6 percent to EUR 294.2 million in 2014, down from EUR 311.9 million in 2013.

Earnings per ordinary share (EPS) - including exceptional items - fell by 21 percent to EUR 1.94 (2013: EUR 2.45). Excluding exceptional items, earnings per ordinary share decreased by 6 percent to EUR 2.31 (2013: EUR 2.45).

Group operating profit (EBIT) including exceptional items declined by 12 percent in 2014 to EUR 468.5 million (2013: EUR 533.8 million). Excluding exceptional items, group operating profit was EUR 523.6 million (2013: EUR 536.3 million).

Including exceptional items, group operating profit before depreciation and amortization (EBITDA) dropped 6 percent in 2014 to EUR 707.7 million, compared to EUR 750.6 million in 2013. Excluding exceptional items, the figure was down 1 percent to EUR 762.8 million on the EUR 753.1 million recorded the previous year.

In 2014, Vopak generated revenues of EUR 1,322.5 million - an increase of EUR 27.3 million or 2 percent compared to EUR 1,295.2 million in 2013. The average occupancy rate for Vopak's subsidiaries (i.e. excluding joint ventures and associates) in 2014 remained the same as in 2013 (88 percent).

"The main positive contributory factors are the expansion projects in Singapore during 2013 and 2014, the better performance of the terminal in Algeciras (Spain) compared with the 2013 period, following its start-up, and the acquisition of Canterm (Canada) at the end of Q1 2014. These positive developments were partly offset by pressures on pricing in some product-market combinations in Europe, the effect of divestments in the course of 2013, the non-renewal of the expired concession in Peru in 2014, and an adverse currency translation effect of EUR 10.7 million," Vopak said.

Commenting on the results, Eelco Hoekstra, Chairman of the Executive Board and CEO of Royal Vopak, remarked: "In 2014, our dedicated staff delivered solid financial results under dynamic market circumstances.

"We continued our strong safety performance, improved our service levels for our customers and we made progress in reducing our operational costs through various efficiency initiatives.

"We were particularly proud of the acquisition of the Canterm terminals in Canada, the acquisition of a 30% equity interest in the Haiteng terminal in China and the conclusion of the shareholder agreement with partners Petronas and Dialog to jointly develop an industrial terminal in Pengerang, Malaysia, towards 2019.

"The year remained challenging with additional storage capacity added by competitors in specific product-market combinations and continued geopolitical uncertainty. However, in Q4 we noticed a continuation of some positive developments such as short-term business opportunities related to the developments in oil prices and favorable foreign exchange rate movements compared to our initial estimates made during the first half of the year 2014.

"Looking ahead towards 2015 and beyond, we will continue to execute our strategy, which we updated in 2014, by further aligning our global terminal network and by improving our safe service delivery for our customers. We will continue adapting ourselves to structural changes in global product flows resulting from growing imbalances, we will focus on further improving Vopak's competitive position, and we will aim to increase free cash flow generation to support the value creation ambitions throughout the company.

"We are determined and energized to achieve these long-term goals safely, diligently and with discipline."


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