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Vopak: Q3 group operating profit up 31% on same period of previous yearRotterdam, the Netherlands, 3 November 2006
John Paul Broeders, Chairman of the Executive Board of Koninklijke Vopak N.V. (Royal Vopak): ‘Our Excellence & Growth strategy is producing good results. I’m proud of the way Vopak’s employees are carrying out the improvements. We are seeing the demand for storage capacity growing globally because of more use of oil products and chemicals, and through an increase in the demand for biofuels. Vopak is responding to this demand by creating more storage capacity. Over 1,6 million cbm additional storage capacity is currently under construction at various locations around the world. In 2007 and 2008 this capacity will gradually be commissioned bringing the total capacity in the Vopak network up to 22.5 million cbm.’ Group operating profit Vopak’s group operating profit for the third quarter of 2006 at EUR 57.7 million represents an increase of 31% (Q3 2005: EUR 44.1 million). The growth of the group operating profit in the third quarter compared to previous quarters this year is also higher as a result of higher occupancy rate and improved margins. At EUR 161.0 million, Vopak’s group operating profit for the first three quarters of 2006 is 29% above the same period of the previous year (YTD 2005: EUR 124.8 million). Outlook Review of operations in the third quarter of 2006 by division (excluding exceptional items) As in the first two quarters of 2006, the CEMEA division (Chemicals Europe, Middle East & Africa) increased its occupancy rate and margins further, lifting the operating profit for the third quarter by 36% to EUR 17.6 million (Q3 2005: EUR 12.9 million). An expansion of 34,000 cbm in the capacity of the Botlek terminal, Rotterdam (Netherlands), recently got underway. Mid-2007 the new tanks for the storage of biofuels and other products will become operational. Operating profit of the OEMEA division (Oil Europe, Middle East and Africa) grew 13% in the third quarter to EUR 17.8 million (Q3 2005: EUR 15.7 million). Vopak achieved a further increase in throughput and occupancy rate, as well as in margins. The expansions for various types of oil products at the Europoort (Rotterdam, Netherlands) and Fujairah (UAE) terminals are progressing according to plan, and will be phased into operation during 2007. Operating profit of the Asia division rose by 31% to EUR 18.8 million (Q3 2005: EUR 14.4 million). The increase is mainly due to new terminals coming on stream for chemicals in Banyan (Singapore) and for oil products in Darwin (Australia), as well as to the additional capacity for chemicals at the Caojing terminal (China). In the third quarter of 2006, Vopak announced expansions of the terminal capacities in Singapore: for chemicals and biofuels at Banyan (165,000 cbm, commissioning at year-end 2007) and for oil products at Sebarok (216,000 cbm, commissioning in 2008). A majority equity interest was also acquired in a terminal in Ho Chi Minh City (Vietnam). In addition, the third quarter saw a start on the further expansion of 40,000 cbm in storage capacity for chemicals at Caojing terminal (China), with commissioning scheduled for 2008. In North America, operating profit grew 15% in the third quarter to reach EUR 6.2 million (Q3 2005: EUR 5.4 million). Similar to 2005, occupancy rate and margins both improved further. The division successfully carried out the restructuring of Logistic Services that had been previously announced. As in the first two quarters of 2006, the Latin America division improved its performance, with operating profit climbing 8% in the third quarter to reach EUR 4.1 million (Q3 2005: EUR 3.8 million). The start of an expansion project in Altimira (Mexico) was announced. Completion of this project, in October 2008, will mean an increase in the storage capacity for chemicals of 31,700 cbm, equal to roughly half the current capacity of 62,600 cbm. In addition in 2007, the Puerto Cabello terminal (Venezuela) will be expanded by 20,000 cbm for the storage of oil products. The non-allocated expense of EUR 6.8 million (Q3 2005: EUR 6.8 million) includes research costs for projects as well as head-office expenses. The projects include the Gate terminal project, a joint venture with N.V. Nederlandse Gasunie for the development of an LNG terminal on the Maasvlakte, near Rotterdam. The project is proceeding according to plan and Vopak expects to take a final investment decision by mid-2007. Forward-looking statements This press release contains statements of a forward-looking nature, based on currently available plans and forecasts. Given the dynamics of the markets and the environments of the 30 countries in which Vopak renders logistics services, the company cannot guarantee the accuracy or completeness of such statements. Unforeseen circumstances include, but are not limited to, exceptional income and expense items, unexpected economic, political and foreign exchange developments, and possible changes to IFRS reporting rules. Statements of a forward-looking nature issued by the company must always be assessed in the context of the events, risks and uncertainties of the markets and environments in which Vopak operates. These factors could lead to actual results being materially different from those expected. Financial calendar 9 March 2007 Publication of 2006 annual results 26 April 2007 Publication of 2007 first quarter results in the form of a trading update 26 April 2007 Annual General Meeting of Shareholders 31 August 2007 Publication of 2007 half-year results 2 November 2007 Publication of 2007 third quarter results in the form of a trading update
Profile Vopak Royal Vopak (Vopak) is the world’s largest independent tank terminal operator specialising in the storage and handling of liquid and gaseous chemical and oil products. On request, Vopak can provide complementary logistic services for customers at its terminals. Vopak operates 75 terminals with a storage capacity of more than 20 million cbm in 30 countries. The terminals are strategically located for users and the major shipping routes. The majority of its customers are companies operating in the chemical and oil industries, for which Vopak stores a large variety of products destined for a wide range of industries. For more information: Telephone: +31 (0)10 4002777
Enclosures:
1. Breakdown of group operating profit *
* these figures have not been audited
3. Vopak’s growth perspective
* Developments/studies: The list provides only an indication of the expansion efforts within the network and is not exhaustive. |
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