Highlights for 2008:
Net profit attributable to holders of ordinary shares increased by 17% to EUR 212.0 million (2007: EUR 181.1 million) and earnings per ordinary share excluding exceptional items were up by 24% to EUR 3.24 (2007: EUR 2.62)
- Vopak added some 5.3 million cubic meters (cbm) of storage capacity to its worldwide network in 2008, which is more than 27 million cbm in total
- In addition, various expansion projects were started in 2008, including the construction of an LNG (liquefied natural gas) import terminal on the Maasvlakte near Rotterdam jointly with the Gasunie
- Proposed dividend of EUR 1.10 per ordinary share, an increase of 16% (2007: EUR 0.95), to be paid in ordinary shares unless a shareholder expressly requests payment in cash
Outlook:
- For 2009, Vopak expects a group operating profit before depreciation and amortization (EBITDA) of at least EUR 450 million, in line with the earlier indicated outlook
- The projects under construction will add 2.5 million cbm of storage capacity in the years 2009 to 2011. These expansions are based largely on rental contracts already entered into. The total investment for Vopak and partners in these projects will involve capital expenditure of some EUR 1.5 billion. This means net capital expenditure of some EUR 0.2 billion for Vopak for 2009 and subsequent years.
John Paul Broeders, Chairman of the Executive Board of Royal Vopak:
“In 2008, we again succeeded in making good progress in the implementation of our strategy, leadership in growth, customer service and operational efficiency. This is shown in closer cooperation with our customers, further improvement in the quality of our services and robust growth in our worldwide storage capacity, which altogether resulted in an improvement in our operating profit excluding exceptional items of 17%.
The current economic downturn is creating uncertainty as well as new challenges. Although we are certainly not immune to any negative economic development, it has not had a material effect on our business up to now. We are still experiencing considerable interest in the storage of oil products and stable demand for tanks for storing biofuels. In the chemicals sector, we are seeing more of a mixed picture. Uncertainty among some of our customers has increased and new investment in production capacity is being delayed in some cases. Changes in product flows do, however, create opportunities. The level of requests for tenders for tank rental is robust and forms a positive indication for the demand for storage services.
Our leading market position, the essential fixed role in the transport chain, excellent contacts with customers and in majority long-term contracts provide us with a good basis to estimate the demand for our services. Consequently, we will continue our existing expansion projects, most of which are covered by rental contracts, and we are looking even more critically at the timing of new projects. We are taking precautionary measures to control costs to deal with the remaining economic uncertainties. In addition, the current and available long-term financing facilities are a healthy basis for further balanced expansion.
Despite uncertainties about economic developments we have confidence in the future, based on the excellent positioning Vopak has. For 2009, we expect a group operating profit before depreciation and amortisation (EBITDA) of at least EUR 450 million, in line with the earlier indicated outlook.”