Royal Vopak has reported 7.78% decrease in revenues in the first quarter to €316.2m ($391.1m) compared with €341.8m ($422.8m) in the same period last year.

Group EBITDA was down 6% to €190.2m ($235.2m), while occupancy rate of 87% (Q1 2017: 91%) explained by lower rented capacity at the oil hub terminals caused by a less favourable oil market structure. Other product-market segments showed stable demand for storage services.

Undeterred, the results come has the tank storage giant announced that it will expand its who’ll-owned Botlek Terminal in the Port of Rotterdam.

The expansion will add 15 new stainless steel tanks with a capacity of 63,000 cbm for styrene and other chemical products. The expansion is expected to be commissioned in Q2 2020.

“The financial performance in 2018 is expected to be influenced by currency exchange movements of primarily the USD and SGD, and the currently less favourable oil market structure, impacting occupancy rates and price levels in the hub locations,” the company said in a statement.

However, Vopak remains optimistic for 2019: “Given the current 3.1 million cbm expansion program with high commercial coverage, in conjunction with the ongoing cost efficiency program, Vopak has the potential to significantly improve the 2019 EBITDA, subject to market conditions and currency exchange movements.”

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18th April 2018