Highlights for the first half year of 2014 -excluding exceptional items- :
| In EUR millions | HY1 2014 | HY1 2013 | Δ |
| Revenues | 647.2 | 648.8 | -0% |
| Group operating profit before depreciation and amortisation (EBITDA) | 366.5 | 384.5 | -5% |
| Group operating profit (EBIT) | 251.3 | 280.3 | -10% |
| Net profit attributable to holders of ordinary shares | 138.3 | 162.5 | -15% |
| Cash flows from operating activities * | 299.5 | 289.7 | 3% |
| Earnings per ordinary share (in EUR) | 1.08 | 1.28 | -16% |
| EBITDA margin excluding result of joint ventures and associates | 49.4% | 49.6% | -0.2pp |
| Return On Capital Employed (ROCE) | 14.6% | 17.3% | -2.7pp |
| Return On Equity (ROE) | 15.2% | 19.5% | -4.3pp |
| Occupancy rate subsidiaries | 88% | 88% | - |
| Storage capacity end of period (in million cbm) | 32.1 | 30.4 | 6% |
| Other information on proportionate basis | |||
| Group operation profit before depreciation and amortization (EBITDA) | 396.1 | 414.1 | -4% |
| Cash Flow Return On Gross Assets (CFROGA) ** | 10.3% | 11.1% | -0.8pp |
| Occupancy rate subsidiaries and joint ventures | 88% | 88% | - |
* On a net basis.
** For the definition of CFROGA reference is made to the enclosure to this press release.
- EBITDA -excluding exceptional items- decreased by 5% to EUR 367 million HY1 2013: EUR 385 million). Adjusted for adverse currency translation effects of EUR 14 million and a number of non-recurring items recognized in HY1 2013 of EUR 11.5 million, the EBITDA increased by EUR 7.9 million.
- EBIT -excluding exceptional items- decreased by 10% to EUR 251 million HY1 2013: EUR 280 million). Adjusted for adverse currency effects (EUR 11 million) the decrease was 6%, mainly due to higher depreciation costs.
- Net profit attributable to holders of ordinary shares -excluding exceptional items- decreased by 15% to EUR 138 million (HY1 2013: EUR 163 million).
- The senior net debt : EBITDA ratio was 2.92 on 30 June 2014 (31 December 2013: 2.53).
- During the first half year of 2014, storage capacity (including 100% for joint ventures and associates) increased by 1.6 million cbm to a total of 32.1 million cbm.
Outlook -excluding exceptional items- :
- We expect no material changes in our business climate during the second half of the year and as a result we anticipate our EBITDA -excluding exceptional items- for the year 2014 will exceed EUR 700 million, versus the earlier indicated decline of 5% to 10% of the 2013 EBITDA (EUR 753 million).
- Vopak expects, on the basis of current market insights, to realize an EBITDA -excluding exceptional items- exceeding the 2012 results of EUR 768 million latest in 2016.
- Projects under development add 6.3 million cbm of storage capacity in the years up to and including 2017. The total investment for Vopak and partners in expansion projects is approximately EUR 1.7 billion, of which Vopak’s total remaining cash spend is approximately EUR 0.3 billion.
Eelco Hoekstra, Chairman of the Executive Board and CEO of Royal Vopak:
“The first half year of 2014 was characterized by stable demand for our storage services throughout our terminal network in North America, Asia and the Middle East, and continued uncertain market circumstances for some product market combinations in Europe. We worked hard to deliver projects under development, safely and within time and budget. We are excited about the commissioning of the first phase of the new greenfield Pengerang terminal in Malaysia in June. This terminal fits Vopak’s long-term strategic orientation, is fully aligned with future market requirements and offers Vopak excellent opportunities for growth going forward. In July, we announced the investment in Netherlands’ first small scale LNG distribution facilities at the Gate terminal in Rotterdam, together with our partner Gasunie, the Port of Rotterdam and the launching customer Shell.
We conducted a diligent business review defining the course for our future, of which the results were announced in July. Vopak reiterated its strategic orientation, yet embarked on an alignment of the strategy execution with the current challenges and opportunities. We updated our terminal portfolio criteria for existing terminals and business development activities to enhance capital and organizational efficiencies. We are confident on the roadmap set out and are on track with the step-by-step implementation towards realizing our objectives.
We expect no material changes in our business climate during the second half of the year and as a result we anticipate our EBITDA -excluding exceptional items- for the year 2014 will exceed EUR 700 million, versus the earlier indicated decline of 5% to 10% of the 2013 EBITDA (EUR 753 million).
We are proud of our company and continue to strive for the high quality of our daily operations and our customers’ satisfaction, with an ongoing strong focus on service and safety. Following our business review and defined course we will create more value from our core assets and core capabilities and generate long-term robust free cash flow against a balanced risk-return profile for all our stakeholders.”