Highlights for HY1 2016 -excluding exceptional items-:
- EBITDA increased by 3% to EUR 421 million (HY1 2015: EUR 408 million), to a large extent resulting from higher occupancy rates. Adjusted for the divestments in 2015 and early 2016, the pro forma EBITDA increased by 7%
- EBIT increased by 3% to EUR 291 million (HY1 2015: EUR 282 million).
- Net profit attributable to holders of ordinary shares increased by 7%. to EUR 174 million (HY1 2015: EUR 162 million).
- Gross operating cash flows decreased by 3% to EUR 374 million (HY1 2015: EUR 386 million)
- Vopak divested its UK activities and its Japan terminals and consequently its worldwide storage capacity on a 100% basis decreased by 0.7 million cbm to 33.6 million cbm compared to year-end 2015.
Exceptional items for HY1 2016:
- Total exceptional gain before taxation amounts to EUR 206 million, which mainly relates to the EUR 283 million gain on the divestment of the UK assets, an impairment in the EMEA division of EUR 44 million and impairments and increases in provisions of EUR 25 million in the Asia division.
Outlook for FY 2016:
- Vopak's positive business developments and the overall market circumstances in the first half year, leading to an overall occupancy rate of 94%, provide a healthy basis for the full year 2016 performance, whilst taking into account the missing contribution from the divested terminals and the adverse foreign exchange rate effects.
CEO statement:
Eelco Hoekstra, CEO of the Executive Board of Royal Vopak, commented: "During the first half of our 400th anniversary year, we improved our safety performance thanks to the continued commitment and efforts of our employees. We were also able to deliver solid financial results owing to a continuation of healthy occupancy rates and robust EBITDA margins. This supports positive cash flow developments and a strong balance sheet, providing sufficient flexibility for funding our capital disciplined growth ambitions.
We see that the growing imbalances of refined petroleum products are further impacted by global developments such as liberalizations in markets like Mexico and Indonesia, China's transition towards a service-driven economy, and the gradual return of Iran onto the world energy market. Growing population, urbanization and increasing wealth levels drive demand in end markets. Therefore, we expect demand for chemicals to grow in the long term, particularly in Asia. Global LNG market conditions continue to be challenging due to an intensifying oversupply, extending the trend in the market towards more LNG trading and volume flexibility.
Vopak continues to diligently assess the changing energy landscape. In line with the key messages set out during our Capital Markets update in 2016, there will be a step-by-step increasing need for better and more storage infrastructure. We maintain our focus on seizing new opportunities in order to further strengthen our leading position in an agile industry. This is also supported by recently commissioned terminals, such as the independent LPG facility in Singapore, as well as recently announced projects like our new operations in Panama and the intention to expand Vopak Terminal Deer Park in Houston with 130,000 cbm for chemical storage".
The analysts' presentation will be given via an on-demand video webcast on Vopak's corporate website www.vopak.com, starting at 11:00 AM CET on 19 August 2016.
For more information please contact:
Press: Liesbeth Lans, Manager External Communication
Telephone: +31 (0)10 4002777, e-mail: global.communication@vopak.com
Analysts and investors: Chiel Rietvelt, Head of Investor Relations
Telephone: +31 (0)10 4002776, e-mail: investor.relations@vopak.com
This press release contains inside information as meant in clause 7 of the Market Abuse Regulation.