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Further reduction in net funding position

23 December 2005 01:00

Rotterdam, the Netherlands, 23 December 2005

Royal Vopak announces the transfer of a portion of its long-term interest-bearing receivables not relating to core activities to a financial institution, with part of the proceeds being used to repay debt.

Taking into account, among other things, the collateral which will gradually be reduced over the remaining term and the applicable reporting requirements under IFRS, the net funding position will decline on balance by some EUR 62 million. The transactions will cause a marginal decrease in net profit for 2005 and subsequent years.

The changes to the funding position are in line with Vopak’s “Tank Terminal Plus” growth strategy. As part of this strategy, Vopak has, over the past few years, sold non-core activities, restructured the preference share programme and repaid long-term debts before their due dates. The company also concluded a new five-year credit facility in July 2005.

Profile

Royal Vopak is the world’s largest independent tank terminal operator specialising in the storage and handling of liquid and gaseous chemical and oil products. Upon request, Vopak can provide complementary logistics services for customers at its terminals. Vopak operates 73 terminals with a storage capacity of more than 20 million cbm in 29 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.