Vopak reports strong FY 2024 results, increases dividend distribution and announces a new share buyback program
February 19 2025 - 1:00AM
UK Regulatory
Vopak reports strong FY 2024 results, increases dividend
distribution and announces a new share buyback program
The Netherlands, 19 February 2025
Vopak reports strong FY 2024 results, increases dividend
distribution and announces a new share buyback program
Key highlights FY 2024
Improve
- Net profit -including exceptional items- FY 2024 of EUR 376
million and EPS of EUR 3.12
- Proportional EBITDA -excluding exceptional items1-
increased in FY 2024 by EUR 16 million to a record of EUR 1,170
million
- Successfully completed share buyback program of EUR 300
million, proposed a dividend of EUR 1.60 per share and announced a
new share buyback program of EUR 100 million that will start on 20
February 2025 and will run until the end of 2025
Grow
- In 2024, we made good progress on the expansions of our gas
infrastructure in Canada, India and the Netherlands and on the
industrial expansions in China and Saudi Arabia
- EemsEnergyTerminal launched an open season for the storage and
regasification of LNG after 2027
Accelerate
- In 2024, we progressed in new energies and sustainable
feedstocks developments by repurposing capacity in Singapore,
Brazil and the Netherlands and by investing in battery energy
storage in the US and the Netherlands
- Committed EUR 15 million to further develop infrastructure for
waste-based feedstocks at Vlaardingen terminal in the
Netherlands
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
In EUR millions |
2024 |
2023 |
| |
|
|
|
|
|
|
| |
|
|
|
IFRS Measures -including
exceptional items- |
|
|
|
336.9 |
325.0 |
352.8 |
|
Revenues |
1,315.6 |
1,425.6 |
|
63.9 |
99.3 |
87.4 |
|
Net profit / (loss) attributable to holders of ordinary shares |
375.7 |
455.7 |
|
0.56 |
0.83 |
0.69 |
|
Earnings per ordinary share (in EUR) |
3.12 |
3.63 |
| |
|
|
|
|
|
|
|
210.2 |
219.4 |
219.7 |
|
Cash flows from operating activities (gross) |
947.5 |
943.1 |
|
-120.0 |
-111.0 |
247.4 |
|
Cash flows from investing activities (including derivatives) |
-495.3 |
109.6 |
| |
|
|
|
|
|
|
| |
|
|
|
Alternative performance
measures -excluding exceptional items-
1 |
|
|
|
485.0 |
479.1 |
494.1 |
|
Proportional revenues |
1,917.5 |
1,941.9 |
|
276.7 |
294.1 |
282.3 |
|
Proportional group operating profit / (loss) before depreciation
and amortization (EBITDA) |
1,170.2 |
1,154.0 |
| |
|
|
|
|
|
|
|
214.2 |
233.3 |
228.8 |
|
Group operating profit / (loss) before depreciation and
amortization (EBITDA) |
934.6 |
963.5 |
|
79.0 |
97.5 |
109.0 |
|
Net profit / (loss) attributable to holders of ordinary shares |
403.1 |
412.9 |
|
0.67 |
0.83 |
0.87 |
|
Earnings per ordinary share (in EUR) |
3.34 |
3.29 |
| |
|
|
|
|
|
|
| |
|
|
|
Business
KPIs |
|
|
|
35.4 |
35.2 |
35.2 |
|
Storage capacity end of period (in million cbm) |
35.4 |
35.2 |
|
20.4 |
20.3 |
20.6 |
|
Proportional storage capacity end of period (in million cbm) |
20.4 |
20.6 |
| |
|
|
|
|
|
|
|
93% |
92% |
91% |
|
Subsidiary occupancy rate |
92% |
91% |
|
93% |
92% |
91% |
|
Proportional occupancy rate |
93% |
91% |
| |
|
|
|
|
|
|
| |
|
|
|
Financial KPIs 1 |
|
|
|
11.8% |
15.1% |
12.8% |
|
Proportional operating cash return |
15.1% |
14.0% |
|
2,672.0 |
2,574.9 |
2,286.4 |
|
Net interest-bearing debt |
2,672.0 |
2,286.4 |
|
2.35 |
2.28 |
1.99 |
|
Total net debt : EBITDA |
2.35 |
1.99 |
| |
|
|
|
|
|
|
| |
|
|
|
Sustainability
performance |
|
|
| |
|
|
|
Total Injury Rate (TIR) |
0.21 |
0.16 |
| |
|
|
|
Process Safety Event Rate
(PSER) |
0.08 |
0.09 |
| |
|
|
|
Total GHG emissions
2 - Scope 1 & 2 (in 1,000 metric tons) |
209.0 |
253.7 |
| |
|
|
|
Percentage women in senior
management positions |
22% |
20% |
CEO message
“I am proud to reflect on our successes during 2024. The Vopak
team has delivered on our strategic priorities to improve our
sustainability and financial performance, grow our footprint in gas
and industrial terminals, and accelerate progress in new energies
and feedstocks. The demand for our infrastructure services
continued to be strong across most business units, underpinned by a
proportional occupancy of 93% and leading to a record level of
proportional EBITDA. On safety, which is our most important
priority, we delivered solid results in both personal and process
safety. We made good progress on the expansions of our gas
infrastructure in Canada, India and the Netherlands and on
industrial expansions in China and Saudi Arabia. In India, our
joint venture AVTL, is exploring options to fund growth through a
local listing. In multiple locations around the world we are
repurposing capacity for new energies and in the US and the
Netherlands we made our first investments in battery energy
storage. Driven by strong cash generation from our portfolio and
our robust financial position, we are proposing an increase in the
dividend distribution of 6.7% compared to 2023 and announcing a new
share buyback program of up to EUR 100 million in 2025. We look
forward to providing further updates on our strategic priorities
and long-term outlook during our Capital Markets Day on 13 March
2025.”
Financial Highlights for FY 2024
- Demand for our services was healthy during 2024. Throughput
levels in our industrial terminals increased year-on-year factoring
in new industrial capacity being commissioned in China. Gas
terminals performance showed firm throughput levels, backed by
growing energy demand and energy security considerations around the
globe. Amidst weak chemical markets, the demand for storage
infrastructure was stable. In the oil hub locations, solid storage
demand was primarily driven by the continued growth in oil demand
globally and the rerouting of trade flows. Despite some market
challenges in Mexico, demand in the other oil distribution
terminals remained firm.
IFRS Measures -including exceptional
items-
- Revenues were EUR 1,316 million (FY 2023: EUR
1,426 million). Adjusted for the divestment impacts of chemical
distribution terminals in Rotterdam (2023), Savannah (2023) and
Lanshan (2024) of EUR 157 million and negative currency translation
effects of EUR 5 million, revenues increased by 4% year-on-year.
The positive performance was driven by favorable storage demand
across different geographies and markets and the contribution of
growth projects.
- Operating expenses consisting of personnel and
other expenses were EUR 662 million in 2024 (2023: EUR 739
million). Adjusted for positive divestment impacts of EUR 84
million and currency translation effects of EUR 2 million, expenses
increased by EUR 9 million, mainly due to increased personnel
expenses which were partially offset by lower energy and utility
expenses.
- Cash flows from operating activities increased
by EUR 5 million to EUR 948 million compared to FY 2023 EUR 943
million, an increase mainly as a result of higher dividend receipts
from joint ventures and associates which increased by EUR 73
million compared to 2023, partially offset by the decrease in
operational result due to divestments.
- Net profit attributable to holders of ordinary
shares was EUR 376 million in FY 2024 compared to FY 2023
EUR 456 million. The decrease reflects the divestment impacts and
exceptional items recognized. Earnings per share (EPS) for FY 2024
was EUR 3.12 compared to EUR 3.63 for FY 2023.
- Shareholder distribution:
- 2024 share buyback program of up to EUR 300
million announced on 14 February 2024, was completed on 9 December
2024. A total of 7,924,438 ordinary shares, 6.30% of the company’s
outstanding shares, were repurchased, at an average price of EUR
37.86 per share. For further details on the share buyback program
please visit our website.
- Dividend of EUR 1.60 (2023: EUR 1.50) per
ordinary share payable in cash, will be proposed at the Annual
General Meeting on 23 April 2025. This represents an increase of
6.7% compared to 2023, in line with Vopak’s stable to progressive
dividend policy which aims to maintain or grow the annual dividend
subject to market conditions.
- 2025 share buyback program of up to EUR 100
million. Today we are announcing a share buyback program that will
start on 20 February 2025 and will run until the end of 2025,
barring unforeseen circumstances.
Alternative performance measures -excluding
exceptional items-3
- Proportional revenues were EUR 1,918 million,
(FY 2023: EUR 1,942 million) an 8% increase after adjusting for
divestment impacts of EUR 155 million and negative currency
translation effects of EUR 9 million.
- Proportional EBITDA increased to EUR 1,170
million (FY 2023: EUR 1,154 million). Adjusted for divestment
impacts of EUR 75 million and negative currency translation effects
of EUR 5 million, proportional EBITDA increased by EUR 96 million
(9% year-on-year), driven mainly by growth project contribution.
Compared to Q3 2024, proportional EBITDA decreased by EUR 17
million to EUR 277 million in Q4 2024, primarily driven by negative
one-offs of EUR 20 million. The one-offs were primarily related to
currency revaluation of specific receivables, EemsEnergyTerminal
financial impact due to technical challenges, certain provisions
and other items. As previously mentioned, EemsEnergy Terminal in
the Netherlands, continues to face temporary technical challenges
which have financial implications. The aim is to have these
challenges resolved during 2025. The terminal remains fully
operational.
- Proportional EBITDA margin FY 2024 was 57% (FY
2023 56%).
- EBITDA was EUR 935 million (FY 2023: EUR 964
million). Adjusted for divestment impacts of EUR 76 million and
negative currency translation effects of EUR 4 million, EBITDA
increased by EUR 51 million (6% year-on-year). The increase was
driven by favorable storage demand across the various markets and
geographies and positive growth project contribution. Q4 2024
EBITDA was EUR 214 million (Q3 2024: EUR 233 million), the decrease
was caused by negative one-off items this quarter of EUR 18
million.
- Proportional growth investments in 2024 were
EUR 391 million (FY 2023: EUR 299 million). Consolidated
growth capex in 2024 was EUR 305 million (FY 2023: EUR 247
million) both reflecting growth investments in India, Belgium, the
United States, the Netherlands and Canada.
- Proportional operating capex decreased to EUR
265 million compared to EUR 290 million in FY 2023, mainly due to
the divestment of the chemical distribution terminals.
Operating capex, which includes sustaining and IT
capex, was EUR 232 million (FY 2023: EUR 255 million), lower than
the same period last year, due to divestment impacts.
- Proportional operating cash flow FY 2024
increased by EUR 11 million (1% year-on-year) to EUR 806 million
(FY 2023: EUR 795 million) driven mainly by strong business
performance that offset divestment impacts and by lower
proportional operating capex. Proportional operating cash
flow per share in 2024 increased to EUR
6.69 per share (FY 2023: EUR 6.34) reflecting improved cash flow
and the cancellation of shares related to the share buyback
program.
Business KPI
- Proportional occupancy rate at the end of FY
2024 was 93% (FY 2023: 91%) and increased compared to Q3 2024
(92%), reflecting solid demand for infrastructure services.
Financial KPIs
- Proportional operating cash return FY 2024
improved to 15.1% compared to 14.0% in FY 2023. The increase was
mainly due to increased proportional free cash flow and lower
average capital employed due to divestments.
- Total net debt : EBITDA ratio was 2.35x at the
end of Q4 2024 (Q3 2024: 2.28x). Proportional leverage in Q4 2024
was 2.67x compared to 2.60x in Q3 2024.
Exceptional items in Q4 2024:
- Due to a negative market outlook for the imports of clean
petroleum products into Mexico, an impairment charge of EUR 58
million for the Veracruz cash-generating unit was recorded. The
impairment was triggered by a decline in occupancy and related cash
flows at the Veracruz terminal following a significant loss of
commercial activity from a customer.
- The SPEC LNG terminal is expected to benefit from increased LNG
imports into Colombia which will be required in the short to
medium-term to compensate for the energy deficit in the country. As
a result, a reversal of impairment previously recognized in 2022 of
EUR 30 million for the SPEC cash-generating was recorded.
- Primary equity issue of AVTL in India resulting in a gain on
partial dilution of EUR 13 million. The transaction represents a
shareholding of 3.4% in AVTL. As a result of this transaction,
Vopak’s shareholding in AVTL diluted from 49.0% to 47.3%. A further
exceptional gain will be reported once all conditions have been
fulfilled.
1 See Enclosure 3 for reconciliation to
the most directly comparable subtotal or total specified by IFRS
Accounting Standards
2 2024 GHG
emissions in the table of 253.7 thousand MT reflects a revised
operational boundary compared to 425 thousand MT of FY 2023 .
Further details can be found in Enclosure 3 of the press release
and the 2024 Annual Report's Sustainability notes
3 To supplement Vopak’s financial information
presented in accordance with IFRS, management periodically uses
certain alternative performance measures to clarify and enhance
understanding of past performance and future outlook. For further
information please refer to page 7 of the press
release.
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
19 February 2025.
Auditor’s involvement
This press release and enclosures of the press release are based on
the 2024 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.
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