VOPAK (AMS:VPK) Royal Vopak: Interim Update YTD Q3 2018

Transparency directive : regulatory news

05/11/2018 07:00
Q3 2018Q2 2018Q3 2017 in EUR millionsYTD Q3 2018YTD Q3 2017
311.4309.9312.1 Revenues937.5981.4-4%
       
    Results -excluding exceptional items-   
182.7180.7176.4 Group operating profit before depreciation and amortization (EBITDA)553.6570.5-3%
116.0113.8109.3 Group operating profit (EBIT)352.7367.4-4%
70.567.260.8 Net profit attributable to holders of ordinary shares210.7211.20%
0.550.530.48 Earnings per ordinary share (in EUR)1.651.66-1%
       
    Results -including exceptional items-   
204.7176.9202.4 Group operating profit before depreciation and amortization (EBITDA)571.8594.4-4%
138.0110.0135.3 Group operating profit (EBIT)370.9391.3-5%
36.764.486.8 Net profit attributable to holders of ordinary shares174.1235.6-26%
0.280.510.68 Earnings per ordinary share (in EUR)1.361.85-26%
       
    Cash Flow from operating activities496.6  477.44%
    Cash Flow from investing and divesting activities-358.4-223.061%
       
    Additional performance measures   
11.8%11.5%10.7% Return on Capital Employed (ROCE)11.9%11.7%0.2pp
86%85%89% Occupancy rate subsidiaries86%90% - 4pp
36.736.035.9 Storage capacity end of period (in million cbm)  36.7  35.9 
    Average capital employed  3,961.8  4,122.6 
1,676.31,661.81,615.6 Net interest-bearing debt  1,676.3  1,615.6 
2.222.182.08 Senior net debt : EBITDA  2.22  2.08 


Highlights for YTD Q3 2018 -excluding exceptional items-:

  • EBITDA of EUR 554 million (YTD Q3 2017: EUR 571 million). Adjusted for adverse currency translation effects of EUR 20 million, the EBITDA was EUR 3 million higher than prior year
  • Occupancy rate of 86% (YTD Q3 2017: 90%) reflected market conditions at oil hub terminals whereas other product-market segments were stable
  • EBIT of EUR 353 million (YTD Q3 2017: EUR 367 million). Adjusted for adverse currency translation effects of EUR 15 million, the EBIT was comparable to prior year
  • Return on Capital Employed of 11.9% (YTD Q3 2017: 11.7%)
  • Net profit attributable to holders of ordinary shares of EUR 211 million (YTD Q3 2017: EUR 211 million) resulting in earnings per ordinary share (EPS) of EUR 1.65 (YTD Q3 2017: EUR 1.66)
  • The associate industrial terminal PT2SB in Malaysia commissioned in September 2018 approximately 700,000 cbm of capacity. The remainder of the 1.5 million cbm of capacity will be commissioned before the end of Q3 2019, in line with plan
  • Our worldwide storage capacity on a 100% basis was 36.7 million cbm per the end of Q3 2018
  • Vopak`s strategic review and testing of the market value of its terminals in Algeciras, Amsterdam, Hamburg and Tallinn, as announced in the Q2 2018 press release, is progressing on schedule

 Exceptional items YTD Q3 2018:

  • Vopak formalized the agreement regarding a new pension plan in the Netherlands, resulting in a gain of EUR 19.1 million on the settlement of the Dutch Pension Plan
  •  As a result of the deconsolidation of our wholly-owned terminal in Venezuela, the income statement includes the effect of recycling historical unrealized currency translation losses from equity to the income statement, reducing the reported net income with EUR 51.0 million, mainly in the net finance expenses, with a neutral effect to total shareholders equity and no effect on cash

Subsequent events:

  • Today, Vopak and its partner Reatile announce that they will further expand their activities in South Africa by investing in a new LPG import and distribution terminal with an initial capacity of 15,000 cbm in Richards Bay, subject to final conditions. This investment facilitates further imports of a cleaner energy source into South Africa. The additional storage capacity is expected to be commissioned in Q2 2020
  • Today, Vopak announces that it will expand its wholly-owned gas terminal in Vlissingen (the Netherlands) by 9,200 cbm of capacity for LPG and chemical gases to serve the NWE market. The additional storage capacity is expected to be commissioned in Q2 2020

Looking ahead:

  • The financial performance in 2018 is expected to be influenced by currency exchange movements of primarily the USD and the SGD, and changes in the oil market structure, impacting occupancy rates and price levels in the hub locations
  • Given the 3.2 million cbm expansion program to be delivered in 2018 and 2019,with high commercial coverage, in conjunction with the cost efficiency program, Vopak has the potential to significantly improve the 2019 EBITDA, subject to market conditions and currency exchange movements
  • Our efficiency program to support margin development and reduce Vopak`s future cost base with at least EUR 25 million was delivered at Q2 2018 and subsequently increased to EUR 40 million to be delivered by the end of 2019

The analysts` presentation will be given via an on-demand audio webcast on Vopak`s corporate website www.vopak.com, starting at 10:00 AM CET on 5 November 2018


For more information please contact:
Vopak Press: Liesbeth Lans - Manager External Communication,
Telephone: +31 (0)10 400 2777 | e-mail: global.communication@vopak.com
Vopak Analysts and Investors: Laurens de Graaf - Head of Investor Relations,
Telephone: +31 (0)10 400 2776 | e-mail: investor.relations@vopak.com
 
Profile Royal Vopak
Royal Vopak is the world`s leading independent tank storage company. We operate a global network of terminals located at strategic locations along major trade routes. With over 400 years of history and a strong focus on safety and sustainability, we ensure safe, efficient and clean storage and handling of bulk liquid products and gases for our customers. By doing so, we enable the delivery of products that are vital to our economy and daily lives, ranging from oil, chemicals, gases and LNG to biofuels and vegoils. Vopak is listed on the Euronext Amsterdam stock exchange and is headquartered in Rotterdam, the Netherlands. Including our joint ventures and associates, we employ an international workforce of over 5,700 people. As of 5 November 2018, Vopak operates 67 terminals in 25 countries with a combined storage capacity of 36.7 million cbm, with another 2.6 million cbm under development that will be added before the end of 2020


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 


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