Vopak reports continued strong results and announces capacity expansions in industrial terminals
July 26 2024 - 1:00AM
UK Regulatory
Vopak reports continued strong results and announces capacity
expansions in industrial terminals
The Netherlands, 26 July 2024
Vopak reports continued strong results and announces
capacity expansions in industrial terminals
Key highlights HY1 2024
Improve
- Net profit -including exceptional items- in HY1 2024 of EUR 213
million and EPS of EUR 1.73
- Proportional EBITDA -excluding exceptional items1-
increased in HY1 2024 to EUR 599 million compared to HY1 2023 (EUR
586 million), driven by growth project contributions and a certain
one-off item that fully offset divestment impacts
- Updated FY2024 proportional EBITDA outlook to EUR 1,150-1,180
million, EBITDA outlook to EUR 920-950 million and consolidated
growth capex outlook to around EUR 350 million
Grow
- Growing in gas terminals by building a large-scale LPG export
terminal in Prince Rupert, Western Canada, with a total investment
of EUR 924 million of which EUR 462 million is the Vopak share
- Growing our industrial footprint in Saudi Arabia and China,
investing EUR 63 million proportional growth capex in capacity
expansion
- Started market consultation to explore extension of
EemsEnergyTerminal in the Netherlands for LNG, and potential for
new energies such as CO2 and hydrogen
Accelerate
- Entered the FEED phase of CO2next project, an important
milestone for developing CO2 infrastructure in
Rotterdam
- Commissioned repurposed 15k cbm capacity in Alemoa, Brazil for
renewable feedstock
|
Q2 2024 |
Q1 2024 |
Q2 2023 |
|
In EUR millions |
HY1 2024 |
HY1 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
IFRS Measures -including exceptional
items- |
|
|
|
325.5 |
328.2 |
359.0 |
|
Revenues |
653.7 |
720.8 |
|
106.7 |
105.8 |
121.0 |
|
Net profit / (loss) attributable to holders of ordinary shares |
212.5 |
224.1 |
|
0.88 |
0.85 |
0.97 |
|
Earnings per ordinary share (in EUR) |
1.73 |
1.79 |
|
|
|
|
|
|
|
|
|
239.1 |
278.8 |
250.8 |
|
Cash flows from operating activities (gross) |
517.9 |
477.8 |
|
- 153.2 |
-111.1 |
77.1 |
|
Cash flows from investing activities (including derivatives) |
- 264.3 |
-26.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Alternative performance measures -excluding exceptional
items- 1 |
|
|
|
475.5 |
477.9 |
480.8 |
|
Proportional revenues |
953.4 |
966.9 |
|
301.6 |
297.8 |
292.2 |
|
Proportional group operating profit / (loss) before depreciation
and amortization (EBITDA) |
599.4 |
586.3 |
|
|
|
|
|
|
|
|
|
252.1 |
235.0 |
245.2 |
|
Group operating profit / (loss) before depreciation and
amortization (EBITDA) |
487.1 |
494.2 |
|
120.8 |
105.8 |
103.5 |
|
Net profit / (loss) attributable to holders of ordinary shares |
226.6 |
206.6 |
|
0.99 |
0.85 |
0.83 |
|
Earnings per ordinary share (in EUR) |
1.84 |
1.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Business KPIs |
|
|
|
34.7 |
34.8 |
36.4 |
|
Storage capacity end of period (in million cbm) |
34.7 |
36.4 |
|
20.1 |
20.2 |
22.0 |
|
Proportional storage capacity end of period (in million cbm) |
20.1 |
22.0 |
|
|
|
|
|
|
|
|
|
92% |
92% |
91% |
|
Subsidiary occupancy rate |
92% |
91% |
|
92% |
93% |
91% |
|
Proportional occupancy rate |
92% |
91% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial KPIs
1 |
|
|
|
16.4% |
17.0% |
13.7% |
|
Proportional operating cash return |
16.7% |
14.6% |
|
2,571.6 |
2,223.4 |
2,852.8 |
|
Net interest-bearing debt |
2,571.6 |
2,852.8 |
|
2.28 |
1.76 |
2.46 |
|
Total net debt : EBITDA |
2.28 |
2.46 |
| |
|
|
|
|
|
|
| |
|
|
|
Sustainability performance |
|
|
| |
|
|
|
Total Injury Rate (TIR), own employees and contractors (per 200,000
hours worked) |
0.16 |
0.15 |
| |
|
|
|
Lost-time Injury Rate (LTIR), own employees and contractors (per
200,000 hours worked) |
0.10 |
0.08 |
| |
|
|
|
Process Safety Event Rate (PSER), own employees and contractors
(per 200,000 hours worked) |
0.07 |
0.14 |
| |
|
|
|
Total GHG emissions - Scope 1 & 2 (metric tons) |
190.9 |
225.2 |
| |
|
|
|
Percentage women in senior management positions |
20.0% |
20.4% |
1. See Enclosure 2 for
reconciliation to the most directly comparable subtotal or total
specified by IFRS Accounting Standards
CEO statement
“In the first half of 2024, financial performance of our network
improved and we executed on our strategy by growing in industrial
and gas terminals and accelerating towards new energies and
sustainable feedstocks. A continued healthy demand for our
infrastructure services resulted in a 92% proportional occupancy in
the first half year. With regards to safety, we continued to
perform well compared to the first half of last year. We had strong
results in executing our strategy by committing to develop a
large-scale LPG export facility, together with our partner in
Western Canada. In our existing industrial terminal portfolio we
are expanding in Saudi Arabia and China. Simultaneously, we are
accelerating in new energies and sustainable feedstocks by entering
the FEED phase for CO2 infrastructure in Rotterdam, and
we commissioned repurposed capacity for renewable feedstock in
Brazil and vegetable oil in the United States of America. We are
well-positioned to capture opportunities which fit our improve,
grow and accelerate strategy.”
Financial Highlights for HY1 2024
IFRS Measures -including exceptional items-
- Revenues were EUR 654 million (HY1 2023: EUR
721 million). Adjusted for divestment impacts of chemical
distribution terminals in Rotterdam and Savannah and currency
translation impacts of EUR 91 million, revenues increased by 4%
year-on-year. The positive performance was driven by favorable
storage demand across different geographies and markets and
contribution of growth projects. Demand for our services was
healthy during the first half of 2024. Throughput levels in our
industrial terminals were solid, with new capacity coming into
service. Gas terminals showed firm throughput levels, backed by
growing energy demand and energy security considerations. In
chemical distribution terminals, the impact on 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. Demand in the oil
distribution terminals also remained firm.
- Operating expenses were EUR 325 million in HY1
2024 (HY1 2023: EUR 352 million). Adjusted for divestment impacts
of EUR 47 million, these expenses increased by EUR 20 million,
mainly due to other expenses recorded as a result of a true up of
AVTL earn out payables of EUR 7 million and an increase in
personnel expenses partly offset by a decrease in energy
costs.
- Cash flows from operating activities increased
by EUR 40 million to EUR 518 million compared to HY1 2023 EUR 478
million, an 8% increase year-on-year, mainly related to increased
dividends received from joint ventures (EUR 85 million) partly
offset derivatives settlements and by lower EBITDA due to
divestment impacts.
- Net profit attributable to holders of ordinary
shares was EUR 213 million (HY1 2023: EUR 224 million)
with a reduction mainly driven by the divestment impacts. Earnings
per share (EPS) in HY1 2024 were EUR 1.73 compared to EUR 1.79 in
HY1 2023.
- Share buyback program of up to EUR 300 million
announced on 14 February 2024, is progressing well. Since its
start, around 75% of the program has been executed per July 25th,
and will be finalized in the course of HY2 2024, barring unforeseen
circumstances. For progress on our share buyback program please
visit our website.
Alternative performance measures -excluding exceptional
items-2
- Proportional revenues were EUR 953 million,
(HY1 2023: EUR 967) an 8% increase after adjusting for divestments
of EUR 87 million.
- Proportional EBITDA increased to EUR 599
million (HY1 2023: EUR 586 million). Adjusted for divestment
impacts of EUR 43 million, proportional EBITDA increased by EUR 56
million (10% year-on-year). Compared to Q1 2024, proportional
EBITDA increased by EUR 4 million, mainly due to an unconditional
success fee related to positive FID taken on our new LPG terminal
in Canada (EUR 7 million). Proportional EBITDA margin in HY1 2024
was 58.9% (HY1 2023: 57.4%) reflecting good business
conditions.
- EBITDA was EUR 487 million (HY1 2023: EUR 494
million). Adjusted for divestment impacts of EUR 43 million, EBITDA
increased by EUR 36 million (8% year-on-year). The increase was
driven by favorable storage demand across the various markets and
geographies and positive growth project contribution which includes
an unconditional success fee related to a positive FID taken
related to the new LPG terminal in Canada (EUR 7 million) and a
deferred income tax release in our joint venture in Pakistan (EUR
10 million). Compared to Q1 2024 (EUR 235 million), EBITDA
increased to EUR 252 million, partly due to certain one-off items
totalling EUR 17 million, related to a deferred income tax release
in our joint venture in Pakistan (EUR 10 million) and an
unconditional success fee related to a positive FID taken related
to the new LPG terminal in Canada (EUR 7 million).
- Growth capex in the first half year was EUR
189 million (HY1 2023: EUR 110 million) reflecting growth
investments in India, Belgium, the United States and Canada.
Proportional growth investments in HY1 2024 were EUR 231 million
(HY1 2023: EUR 184 million).
- Operating capex, which includes sustaining and
IT capex, was EUR 92 million (HY1 2023: EUR 120 million) due to
divestment impacts. Proportional operating capex decreased to EUR
104 million compared to EUR 138 million in HY1 2023, mainly due to
the divestment of the chemical distribution terminals.
- Proportional operating cash flow in HY1 2024
increased by EUR 32 million (8% year-on-year) to EUR 447 million
(HY1 2023: EUR 415 million) driven mainly by lower proportional
operating capex. Proportional operating cash flow per share in HY1
2024 increased to EUR 3.63 per share from EUR 3.31 in HY1
2023.
Business KPIs
- Proportional occupancy rate at Q2 2024 was 92%
compared to 93% in Q1 2024, mainly related to decreased occupancy
in the China Business Unit and out of service capacity in the
Netherlands.
Financial KPIs
- Proportional operating cash return in HY1 2024
improved to 16.7% compared to 14.6% in HY1 2023. The increase was
mainly due to a lower average capital employed due to divestments,
and positive contribution from new growth projects.
- Total net debt : EBITDA ratio was 2.28x at the
end of HY1 2024 compared to 2.46x at the end of HY1 2023. The
increase compared to Q1 2024 was mainly driven by dividends paid to
shareholders in May and the ongoing share buyback program. Our
ambition is to keep total net debt to EBITDA in the range of around
2.50-3.00x. Proportional leverage in HY1 2024 was 2.67x compared to
2.85x in HY1 2023.
Exceptional items in Q2 2024 consist of:
- Divestment gain of EUR 4.3 million following the sale of the
chemical distribution terminal Lanshan in China in May 2024.
- Impairment of EUR 10.1 million of the Ningbo terminal in China
as a result of further infrastructure development plans in the
Zhenhai port that will lead to a reduction of the capacity of
Ningbo terminal.
- Other expenses of EUR 6.9 million following true up of earn out
payables related to AVTL joint venture in India.
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 CEST on
26 July 2024.
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.
2. 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 8 of the press release.
- Vopak Press Release HY1 2024
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