In the first half year of 2019, Vopak’s revenues amounted to €641.4 million, which was €15.3 million (2%) higher than the first six months of 2018 (€626.1 million). Group operating profit before depreciation and amortization (EBITDA) -excluding exceptional items- and including the net result of joint ventures and associates, increased by €51.7 million (14%) to €422.6 million (HY1 2018: €370.9 million).
The average occupancy rate for Vopak’s subsidiaries (i.e. excluding joint ventures and associates) for the first six months of 2019 was 85% compared to 86% in the first half year of 2018. The Netherlands and Singapore had relatively high out of service capacity due to IMO2020 conversion projects.
In the first half of 2019, Vopak’s worldwide storage capacity increased by 0.9 million cbm, mainly from commissioning of capacity at our industrial terminal in Pengerang in Malaysia and the commissioning of the Ridley Island Propane Export Terminal in Canada. Due to the divestment of the fuel oil terminal in Tallinn in Estonia, the net decrease of storage capacity was 0.1 million cbm resulting in an overall capacity of 36.9 million cbm at the end of June 2019 (end of June 2018: 36.0 million cbm).
• On 23 January 2019, Vopak acquired an additional share of 15% in the associate Engro Elengy Terminal, bringing the total share in this joint venture to 44%. This LNG import facility consists of an LNG jetty and high-pressure gas pipeline and holds a 15 year Floating Storage and Regasification Unit (FSRU) time charter.
• On 25 January 2019, Vopak acquired an additional 35% share in Vopak Terminal Ningbo, bringing the total share in this chemicals terminal to 85%.
• On 13 February 2019, Vopak announced that it will expand its terminal in Vietnam with 20,000 cbm for the storage and handling of chemicals.
• On 13 February 2019, Vopak announced the expansion of its terminal in Veracruz in Mexico with 110,000 cbm for the storage and handling of clean petroleum products.
• On 13 February 2019, Vopak together with its partners Whitehelm Capital and Groningen Seaports announced their intention to jointly invest in a 27 MW solar park.
• On 3 April 2019, Vopak completed the divestment of its 50% share in the Estonian terminal Vopak E.O.S.
• On 5 April 2019, Vopak reached an agreement with First State Investments on the sale of the terminals in Algeciras, Amsterdam and Hamburg, subject to certain customary closing conditions. The transaction value of the terminals is €723 million and the total expected exceptional gain before taxation will be around €200 million, to be recorded upon completion, expected in the second half of 2019. These terminals were classified as held for sale as from 31 March 2019.
• Mid-April 2019, the Ridley Island Propane Export Terminal (RIPET), located in Prince Rupert, British Columbia in Canada was commissioned. The facility, which is a joint venture with Altagas, is designed to ship 1.2 million tonnes of propane per annum, with approximately 96,000 cubic meters of storage capacity.
Royal Vopak Chief Executive Officer Eelco Hoekstra comments: “The first half of 2019 was important as we have taken further steps in the delivery of our strategy and the alignment of our portfolio based on long-term market developments.
“We have taken significant new capacity into operations to meet new customers demand. Together with our partners we fully commissioned the industrial terminal PT2SB in Malaysia and celebrated the opening of the LPG export terminal RIPET in Canada. In addition, we expanded our share in the LNG import terminal in Pakistan. At present, we have delivered 2.1 million cbm of our 3.2 million cbm expansion program towards the end of 2019. Fuel oil capacity conversions for the IMO 2020 bunker fuel regulations are progressing well and will support new market requirements as from Q4 2019.
“The divestment of some of our European assets will, after completion, shift our portfolio further towards industrial, chemical and gas terminals. We aim to grow our portfolio in line with market developments and expect our growth investment momentum in 2019 to continue in 2020. Looking further ahead, we continue to explore opportunities in new energies and have today announced our first investment to facilitate the development of hydrogen logistics.
“Our digital transformation is progressing well with the global roll-out of our cloud-based digital terminal management system and we have made excellent progress with our new business development projects.”
For more information visit www.vopak.com