Vopak reports on HY1 2023 results
July 28 2023 - 1:00AM
Vopak reports on HY1 2023 results
Rotterdam, the Netherlands, 28 July 2023
Vopak reports strong First Half Year
2023 results and confirms its outlook for FY
2023
Key highlights HY1 2023
Improve:
- EBITDA in HY1 2023 of EUR 494 million. FY 2023 outlook
confirmed.
- Repurposing part of capacity into vegetable oil storage in Deer
Park terminal, Houston.
- Completed divestment of Savannah terminal, Colombian chemical
terminals classified as held for sale, strategic review of Vopak’s
three chemical terminals in the Port of Rotterdam is in
progress.
Grow:
- Solidifying our leading industrial terminal position in
Singapore with additional pipeline connections.
- Established 50/50 partnership with AltaGas to study a
large-scale LPG export facility in West Canada.
- Strengthening Vopak’s leading position in India through four
expansions in LPG and liquid products.
- Developing LNG infrastructure in the Netherlands to increase
gas supply security in Europe.
Accelerate:
- Commissioned new infrastructure in the port of Rotterdam
related to waste-based feedstocks.
- Successfully completed the acquisition of a prime location in
the Port of Antwerp for new energies and sustainable
feedstocks.
Q2 2023 |
Q1 2023 |
Q2 2022 |
|
in EUR millions |
HY1 2023 |
HY1 2022 |
359.0 |
361.8 |
338.0 |
|
Revenues |
720.8 |
662.1 |
|
|
|
|
|
|
|
|
|
|
|
Results -excluding
exceptional items- |
|
|
245.2 |
249.0 |
219.4 |
|
Group operating profit / (loss) before depreciation and
amortization (EBITDA) |
494.2 |
432.5 |
163.5 |
168.6 |
130.9 |
|
Group operating profit / (loss) (EBIT) |
332.1 |
256.7 |
103.5 |
103.1 |
53.5 |
|
Net profit / (loss) attributable to holders of ordinary shares |
206.6 |
128.2 |
0.83 |
0.82 |
0.42 |
|
Earnings per ordinary share (in EUR) |
1.65 |
1.02 |
|
|
|
|
|
|
|
|
|
|
|
Results -including
exceptional items- |
|
|
291.4 |
249.0 |
-245.0 |
|
Group operating profit / (loss) before depreciation and
amortization (EBITDA) |
540.4 |
- 31.9 |
209.7 |
168.6 |
-333.5 |
|
Group operating profit / (loss) (EBIT) |
378.3 |
- 207.7 |
121.0 |
103.1 |
-410.5 |
|
Net profit / (loss) attributable to holders of ordinary shares |
224.1 |
- 335.8 |
0.97 |
0.82 |
-3.28 |
|
Earnings per ordinary share (in EUR) |
1.79 |
-2.68 |
|
|
|
|
|
|
|
220.2 |
219.7 |
214.0 |
|
Cash flows from operating activities (gross excluding
derivatives) |
439.9 |
383.1 |
250.8 |
227.0 |
189.4 |
|
Cash flows from operating activities (gross) |
477.8 |
339.6 |
77.1 |
-103.1 |
-176.0 |
|
Cash flows from investing activities (including derivatives) |
- 26.0 |
- 270.8 |
|
|
|
|
|
|
|
|
|
|
|
Additional
performance measures |
|
|
292.2 |
294.1 |
267.1 |
|
Proportional EBITDA -excluding exceptional items- |
586.3 |
520.8 |
22.0 |
22.1 |
22.3 |
|
Proportional capacity end of period (in million cbm) |
22.0 |
22.3 |
91% |
92% |
87% |
|
Proportional occupancy rate |
91% |
86% |
36.4 |
36.6 |
36.7 |
|
Storage capacity end of period (in million cbm) |
36.4 |
36.7 |
91% |
92% |
87% |
|
Subsidiary occupancy rate |
91% |
85% |
|
|
|
|
|
|
|
13.7% |
15.4% |
11.1% |
|
Proportional operating cash return |
14.6% |
11.4% |
12.6% |
12.6% |
9.3% |
|
Return on capital employed (ROCE) |
12.6% |
9.2% |
5,095.9 |
5,223.0 |
5,538.7 |
|
Average capital employed |
5,157.7 |
5,474.8 |
2,852.8 |
2,946.5 |
3,211.4 |
|
Net interest-bearing debt |
2,852.8 |
3,211.4 |
2.27 |
2.49 |
2.86 |
|
Senior net debt : EBITDA |
2.27 |
2.86 |
2.46 |
2.69 |
3.06 |
|
Total net debt : EBITDA |
2.46 |
3.06 |
Royal Vopak Chief Executive Officer Dick Richelle,
said:
“During the first half year of 2023 the demand
for our services was strong, reflected by an occupancy of 91%.
EBITDA increased 14% compared with last year, mainly driven by
organic growth across most of the divisions. We continued to make
good progress on our strategy to improve our
financial and sustainability performance, to grow
our base in industrial and gas terminals, and to
accelerate towards new energies and sustainable
feedstocks. Our well diversified portfolio combined with our new
simplified organizational structure, positions us well to continue
to execute this strategy. We confirm FY 2023 outlook, as we remain
focused on long-term value creation through disciplined and
balanced capital allocation.”
Financial Highlights for HY1 2023 - excluding
exceptional items
-
Revenues increased to EUR 721 million (HY1 2022:
EUR 662 million) despite a divestment impact of EUR 25 million and
unfavorable currency translation effects of EUR 2 million.
-
Proportional revenues increased to EUR 967 million
(HY1 2022: EUR 886 million). During HY1 2023 the oil markets were
dominated by volatility, rebalancing of trade flows and supply
security concerns which supported overall storage demand. Growth in
global industrial production continued to slow down, impacting
global chemical production. In Europe, this led to an increased
need for chemical imports. A slower than expected recovery related
to China's reopening has resulted in a bearish sentiment in the
industry for the second half of 2023. Throughput levels in our
industrial terminals remain stable and we foresee limited impact
due to our established and well diversified industrial portfolio in
China. Gas markets (LNG) normalized in 2023 after the
disruption of the Russia Ukraine war. In addition growth
projects contribution further supported revenue.
-
Proportional occupancy rate at Q2 2023 was 91% (Q1
2023: 92%). Occupancy in the Europe & Africa division and the
Asia & Middle East division remained strong.
-
Costs increased by EUR 10 million to EUR 350
million (HY1 2022: EUR 340 million) mainly due to increased
energy costs, personnel expenses and higher operating expenses,
including the cost of growth projects. The increase was partially
offset by a positive divestment impact. Compared to Q1 2023 (EUR
175 million), costs were broadly flat as the increase in personnel
expenses was offset by a decrease in energy costs.
-
EBITDA increased by EUR 61 million (14%
year-on-year) to EUR 494 million (HY1 2022: EUR 433 million) driven
by organic growth across most of the divisions, growth project
contribution (EUR 10 million) partially offset by higher costs and
divestment impact (EUR 8 million) and negative currency translation
effects (EUR 2 million).
-
Proportional EBITDA increased to EUR 586 million
(HY1 2022: EUR 521 million).
-
Proportional EBITDA margin in HY1 2023 was at
57.4% (HY1 2022: 55.5%) an improvement reflecting good business
conditions and our commercial ability to seize and capitalize on
the various market opportunities despite the high inflationary and
cost environment.
-
EBIT of EUR 332 million (HY1 2022: EUR 257
million), increased by EUR 75 million mainly due to EBITDA
performance and lower depreciation compared to HY1 2022 mainly as a
result of impairment charges accounted for in HY1 2022.
-
Growth investments in HY1 2023 were EUR 149
million excluding any net cash compensation received (HY1 2022: EUR
240 million). Growth investments in 2022 include Vopak investment
in Aegis-Vopak partnership in India. Proportional growth
investments in HY1 2023 were EUR 184 million (HY1 2022: EUR 249
million).
-
Operating capex, which includes sustaining and IT
capex, in HY1 2023 was EUR 120 million (HY1 2022: EUR 117 million)
while proportional operating capex was EUR 138 million (HY1 2022:
EUR 126 million) in line with Vopak’s ambition to have a maximum
spend of EUR 300 million in FY 2023.
-
Cash flow from operating activities increased by
EUR 138 million to EUR 478 million compared to HY1 2022 EUR 340
million. The increase was related mainly to positive business
performance (EUR 53 million), working capital movements (EUR 63
million) and derivatives as financial instruments adjustments (EUR
81 million) partially offset by the lower dividend receipts from
joint ventures and associates (EUR 59 million) due to one-off
dividends received last year from PT2SB and Fujairah joint
ventures.
-
Proportional operating cash flow in HY1 2023
increased by EUR 68 million (20% year-on-year) to EUR 415 million
(HY1 2022 EUR 347 million) driven mainly by improved proportional
EBITDA performance and partly offset by a negative currency
translation impact of EUR 4 million. Proportional operating cash
return in HY1 2023 was 14.6% compared to 11.4% in HY1 2022.
Proportional operating cash return in Q2 2023 was at 13.7% compared
to Q1 2023 at 15.4% due to seasonal lower operating capex in Q1
2023. Proportional operating cash return from FY 2022 includes
lessor accounting. The change in the methodology of calculating
proportional operating cash return provides better insight into the
cash generation of the business.
-
Net profit attributable to holders of ordinary
shares was EUR 207 million (HY1 2022: EUR 128
million).
-
The total net debt : EBITDA ratio is 2.46x at the
end of Q2 2023 (Q2 2022: 3.06x) in line with our ambition to keep
net debt to EBITDA at the lower end of the range of around
2.5-3.0x. Total net debt includes the senior net debt (EUR
1,960 million) and subordinated debt (EUR 166 million).
Exceptional items in HY1 2023 consist
of:
- A gain of EUR 21 million, net of tax charge of EUR 29
million, was recognized upon completion of the divestment of
100% shareholding in Vopak Terminals Savannah Inc.
- Organizational restructuring charges incurred for EUR 3 million
for changes in management structure in line with Vopak’s strategic
goals. Vopak expects to incur organizational restructuring charges
in the remainder of the year of approximately EUR 10 million in
total.
- Adjustment of receivable for Vopak Terminal Hamburg divestment
(2019) resulted in a charge of EUR 1 million.
These items have no impact on the leverage ratio
and covenants level.
For more information please
contact:
Vopak Press: Liesbeth
Lans - Manager External
Communication,e-mail: global.communication@vopak.com
Vopak Analysts and
Investors: Fatjona Topciu - Head of Investor
Relations,e-mail: investor.relations@vopak.com
The analysts’ presentation will be given via
an on-demand video webcast on Vopak’s corporate
website, starting at 10:00 AM CEST on 28
July 2023.
This press release contains inside information
as meant in clause 7 of the Market Abuse Regulation.The content of
this report has not been audited or reviewed by an external
auditor.
For Vopak's full press release,
please refer to the attached document.
- Vopak reports on HY1 2023 results
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