Vopak reports FY 2023 and Q4 2023 financial results
February 14 2024 - 1:00AM
Vopak reports FY 2023 and Q4 2023 financial results
The Netherlands, 14 February 2024
Vopak reports strong FY 2023 results, announces
substantial progress on strategy execution and increases
shareholder distribution
Key highlights FY 2023
Improve
- EBITDA in FY2023 increased to EUR 964 million, proportional
EBITDA to EUR 1,154 million and operating cash return to
14%
- Reduced our CO2 footprint by 25% compared to our baseline of
2021 and further improved our safety performance
- Actively managed our portfolio with strategic divestments
completed and EUR 523 million proceeds received
- EPS increased by 40% to EUR 3.29, dividend of EUR 1.50 per
share announced, a 15% increase compared to 2022 and up to EUR 300
million to be returned to shareholders via a share buyback
program
Grow
- Expanded our open access LNG capacity in the Netherlands to
support energy security
- Strengthened our leading position in India
- Solidified our leading industrial terminal position with
investments in Singapore, China and the United States
Accelerate
- Commissioned repurposed infrastructure in the United States and
Singapore for low-carbon transportation fuels
- Expanded capacity in the Netherlands and Brazil for feedstock
for low-carbon transportation fuels
- Entered into the electricity storage sector in the United
States, expected to be operational in the course of 2024
Q4 2023 |
Q3 2023 |
Q4 2022 |
|
In EUR millions |
2023 |
2022 |
|
|
|
|
|
|
|
352.8 |
352.0 |
355.3 |
|
Revenues |
1,425.6 |
1,367.0 |
|
|
|
|
|
|
|
|
|
|
|
Results -excluding
exceptional items- |
|
|
228.8 |
240.5 |
227.8 |
|
Group operating profit / (loss) before depreciation and
amortization (EBITDA) |
963.5 |
887.2 |
150.2 |
158.2 |
150.3 |
|
Group operating profit / (loss) (EBIT) |
640.5 |
547.3 |
109.0 |
97.3 |
88.5 |
|
Net profit / (loss) attributable to holders of ordinary shares |
412.9 |
294.4 |
0.87 |
0.77 |
0.71 |
|
Earnings per ordinary share (in EUR) |
3.29 |
2.35 |
|
|
|
|
|
|
|
|
|
|
|
Results -including
exceptional items- |
|
|
187.6 |
286.5 |
226.2 |
|
Group operating profit / (loss) before depreciation and
amortization (EBITDA) |
1,014.5 |
424.0 |
109.0 |
204.2 |
148.7 |
|
Group operating profit (loss) (EBIT) |
691.5 |
84.1 |
87.4 |
144.2 |
86.9 |
|
Net profit / (loss) attributable to holders of ordinary shares |
455.7 |
-168.4 |
0.69 |
1.15 |
0.70 |
|
Earnings per ordinary share (in EUR) |
3.63 |
-1.34 |
|
|
|
|
|
|
|
219.4 |
240.2 |
316.9 |
|
Cash flows from operating activities (gross excluding
derivatives) |
899.5 |
897.9 |
219.7 |
245.6 |
341.2 |
|
Cash flows from operating activities (gross) |
943.1 |
872.1 |
247.4 |
- 111.8 |
- 100.7 |
|
Cash flows from investing activities (including derivatives) |
109.6 |
- 489.4 |
|
|
|
|
|
|
|
|
|
|
|
Additional performance
measures |
|
|
282.3 |
285.4 |
269.6 |
|
Proportional EBITDA -excluding exceptional items- |
1,154.0 |
1,067.8 |
20.6 |
22.0 |
22.1 |
|
Proportional capacity end of period (in million cbm) |
20.6 |
22.1 |
91% |
92% |
90% |
|
Proportional occupancy rate |
91% |
88% |
35.2 |
36.4 |
36.6 |
|
Storage capacity end of period (in million cbm) |
35.2 |
36.6 |
91% |
91% |
90% |
|
Subsidiary occupancy rate |
91% |
87% |
|
|
|
|
|
|
|
12.8% |
14.1% |
9.3% |
|
Proportional operating cash return |
14.0% |
11.4% |
11.7% |
12.2% |
10.6% |
|
Return on Capital Employed (ROCE) |
12.3% |
9.8% |
5,058.8 |
5,068.5 |
5,319.4 |
|
Average capital employed |
5,106.3 |
5,408.1 |
2,286.4 |
2,698.8 |
3,050.8 |
|
Net interest-bearing debt |
2,286.4 |
3,050.8 |
1.80 |
2.09 |
2.65 |
|
Senior net debt : EBITDA |
1.80 |
2.65 |
1.99 |
2.27 |
2.85 |
|
Total net debt : EBITDA |
1.99 |
2.85 |
CEO statement
“I am proud to look back on a successful 2023. Our team at Vopak
delivered on our strategic priorities and with our well-diversified
terminal portfolio, we are supporting the world’s need for energy
security and the ongoing energy transition. We made good progress
on our strategy to improve our financial and sustainability
performance. Organic growth across most of the business units led
to a healthy proportional occupancy of 91% and EBITDA of EUR 964
million which is a record result for Vopak leading to a 9%
year-on-year increase. We were able to also increase the EBITDA
margin by 2 percentage points. On safety, our first priority, we
further improved our personal safety and maintained a very good
process safety performance.
We successfully completed the divestment of three chemical
terminals in Rotterdam, the Netherlands and a chemical distribution
terminal in Savannah, United States. We continued to grow our base
in industrial and gas terminals with expansion in China, United
States, India and the Netherlands. We are progressing well in
accelerating towards new energies and sustainable feedstocks, by
commissioning repurposed infrastructure as well as expanding the
capacity for feedstock for low-carbon transportation fuels.
We made our first investment into electricity storage
infrastructure in the United States. Due to our robust financial
position and strong portfolio cash generation, we are increasing
shareholder distribution by a combination of growing dividends by
15% compared to 2022 and a share buyback program of up to EUR 300
million.”
Financial Highlights for FY 2023 -excluding exceptional
items-
- Revenue increased to EUR 1,426 million (FY
2022: EUR 1,367 million) driven by favorable storage demand in all
markets which more than compensated for the divestment impact of
EUR 37 million and unfavorable currency translation effects of EUR
26 million. In addition, growth projects further supported
revenue.
- Proportional revenue
increased to EUR 1,942 million (FY 2022: EUR 1,857
million). During 2023 the volatility in the oil market,
rebalancing of trade flows and supply security concerns supported
overall storage demand in the main hub locations. Chemical markets
were characterized by oversupply, suppressed China consumption as
well as declining margins and operating rates. However the demand
for storage was stable. Throughput levels in our industrial
terminals remained firm. Gas markets (LNG) settled in 2023 after
the disruption caused by the Russia - Ukraine war.
- Subsidiary occupancy rate at FY 2023 was 91%
(FY 2022: 87%). Proportional occupancy rate at FY 2023 increased to
91% (FY 2022: 88%) mainly due to improved occupancy in Asia &
Middle East, Singapore and the Netherlands business units.
- Costs were broadly stable at EUR 717 million
(FY 2022: EUR 713 million) as the cost control measures and
favorable divestment and currency translation impacts offset
increased personnel expenses and higher operating expenses,
including the cost of growth projects. Proportional costs increased
by EUR 11 million to EUR 905 million (FY 2022: EUR 894
million).
- EBITDA increased by EUR 77 million (9%
year-on-year) to EUR 964 million (FY 2022: EUR 887 million) as a
result of favorable storage demand across the different markets and
geographies while keeping costs broadly stable and offsetting the
divestment impact (EUR 6 million) as well as negative currency
translation effects (EUR 23 million). Compared to Q3 2023 (EUR 241
million), EBITDA (Q4 2023: EUR 229 million) decreased due to the
divestment impact of three chemical terminals in Rotterdam (EUR 6
million), higher costs and lower results from joint ventures,
partly offset by growth project contributions.
- Proportional EBITDA increased by EUR 86
million (8% year-on-year increase) to EUR 1,154 million (FY 2022:
EUR 1,068 million). Proportional EBITDA margin in FY 2023 was 56%
(FY 2022: 54%) an improvement reflecting good business conditions
and our commercial ability to pass on inflationary and exceptional
energy costs during the year.
- EBIT increased by EUR 94 million (17%
year-on-year) to EUR 641 million (FY 2022: EUR 547 million) mainly
due to improved EBITDA performance, lower depreciation and higher
results from joint ventures.
- Growth investments in 2023 were EUR 247
million excluding any net cash received (FY 2022: EUR 313 million).
Proportional growth investments in 2023 were EUR 299 million (FY
2022: EUR 349 million).
- Operating capex, which includes sustaining and
IT capex, decreased by EUR 36 million to EUR 255 million (FY
2022: EUR 291 million) due to divestment impact and lower spend
compared to last year. Proportional operating capex was EUR 290
million (FY 2022: EUR 315 million).
- Cash flow from operating activities increased
by EUR 71 million to EUR 943 million compared to FY 2022 EUR
872 million (8% year-on-year). The increase was related mainly to
positive business performance (increase of EUR 54 million) and
settlement of derivatives (increase of EUR 69 million). This was
partially offset by lower dividend receipts from joint ventures and
associates (decrease of EUR 34 million).
- Proportional operating cash flow in FY 2023
increased by EUR 111 million (16% year-on-year) to EUR 795 million
(FY 2022 EUR 684 million) driven mainly by improved proportional
EBITDA performance, partly offset by a negative currency
translation impact.
- Proportional operating cash return in FY 2023
was 14.0% compared to 11.4% in FY 2022. The increase was mainly due
to higher EBITDA contribution and lower average capital employed
compared to last year.
- Total impairment charges in FY 2023 were EUR
31 million offset by the reversal of impairments of EUR 54 million
(FY 2022: charge of EUR 449 million).
- Net profit attributable to holders of ordinary
shares -excluding exceptional items- was EUR 413 million
(FY 2022: EUR 294 million). FY 2023 Earnings per share (EPS)
-excluding exceptional items- continued to improve, FY 2023 EPS was
EUR 3.29 (40% year-on-year) compared to EUR 2.35 in FY 2022.
- The total net debt : EBITDA ratio is 1.99x at
the end of 2023 compared to 2.85x at the end of 2022 and 2.27x at
the end of Q3 2023. Our ambition is to keep total net debt to
EBITDA in the range of around 2.50-3.00x.
- Shareholder distribution Successful
execution of our strategy has led to a robust financial position
which allows us to increase the dividend and the start of a share
buyback program.
- Proposed dividend of EUR 1.50 (2022: EUR 1.30)
per ordinary share, payable in cash, will be proposed at the Annual
General Meeting on 24 April 2024. This represents an increase of
15% compared to 2022, in line with Vopak’s stable to progressive
dividend policy which aims to maintain or grow the annual dividend
subject to market conditions.
- Share buyback program of up to EUR 300
million. Today we announce the share buyback program that will
start on 15 February 2024 and will run until the end of 2024,
barring unforeseen circumstances.
Exceptional items in Q4 2023 consist of:
- Divestment loss of EUR 5 million following the sale of three
chemical terminals in Rotterdam (Botlek, TTR and Chemiehaven) in
November 2023.
- Organizational restructuring charges of EUR 6 million (YTD Q3
2023: EUR 11 million) for changes in management structure in line
with Vopak’s strategic goals mainly include employee termination
benefits and advisory costs.
- Impairment of a partially constructed jetty in China in the
amount of EUR 22 million. Vopak has decided not to pursue the
completion of the jetty which has started in 2018 due to lack of
feasibility of this LNG project.
- On 2 February 2024, Vopak signed a sale and purchase agreement
to sell its 60% share (42% economic share) in chemical distribution
terminal Shandong Lanshan, China which led to an impairment of EUR
9 million upon classification as asset held for sale.
- Income tax gain of EUR 16 million related to the net income tax
effects on the exceptional items.
- For the full financial year 2023 exceptional items overview,
reference is made to the Financial Statement section in the Annual
Report.
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 audio
webcast on Vopak’s corporate website, starting at 10:00 AM CET on
14 February 2024.
Auditor’s
involvementThis press release and
enclosure 3 are based on the 2023 financial
statements. The financial statements are published in accordance
with statutory provisions. The auditor has issued an unqualified
auditor’s report on the Financial Statements.
This press release contains
inside information as meant in clause 7 of the Market Abuse
Regulation.
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