Highlights first quarter 2013:
- First quarter Group operating profit -excluding exceptional items- amounted to EUR 138.4 million (Q1 2012 restated: EUR 139.2 million).
- During the first quarter of 2013 storage capacity (including 100% for joint ventures and associates) increased by 0.4 million cbm to a total of 30.3 million cbm.
Outlook (excluding exceptional items):
- Following the 20% EBITDA growth in 2012, and taking into account the modest capacity expansions coming on stream in 2013, no material changes in product outlook assumptions resulting in an expected average occupancy rate of around 90%, and higher pension charges (a total increase of approximately EUR 19 million for defined benefit and defined contribution plans), Vopak expects to realize an EBITDA at constant currencies of between EUR 760-800 million in 2013. As already disclosed at the time of FY 2012 results, the long-term financing activities completed in 2012 are expected to weigh on EPS development due to higher net financing costs.
- Projects under construction are expected to add 4.9 million cbm of storage capacity in the years 2013 up to and including 2015. The total investment for Vopak and partners in expansion projects involves capital expenditure of approximately EUR 1.9 billion, of which Vopak’s total remaining cash spend is expected to be approximately EUR 0.5 billion. The completion of these expansion projects is expected to result in a worldwide storage capacity of approximately 35.2 million cbm as per the end of 2015.
Eelco Hoekstra, Chairman of the Executive Board and CEO of Royal Vopak:
“I am pleased to see an overall healthy demand for storage services in our global network. However, the first quarter of 2013 demonstrated the relatively weaker European economy. In the Netherlands, we continue to see lower demand for crude oil and gasoil storage. Outside Europe, I am positive about the market environment, considering amongst others the optimism in the chemical sector in North America fuelled by the shale gas developments. Also in Asia and the Middle East, we are witnessing strong storage demand due to the fact that energy is fundamental to economic growth and improved living standards.
I am very pleased with the recent opening of Vopak Terminal Algeciras (Spain) within our worldwide network of strategically located tank storage terminals. This is part of a portfolio of more than 20 expansion projects that Vopak is constructing worldwide today.
Following the strong results in 2012, we reached an EBITDA -excluding exceptional items- of EUR 188.9 million in the first quarter of 2013; 1% higher compared to the same period in 2012 (restated). During the first quarter of 2013, the profitable expansion projects in 2012 were largely offset by higher pension costs and lower demand for crude and gasoil storage in the Netherlands.
We remain confident in the long-term outlook for our business. 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 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 price and capacity trends observed at our existing terminals are required. While we continue to have a range of potential projects under consideration, we remain committed to the capital disciplined execution of our strategy.”