VTTI outlook positive

17.02.16. VTTI CEO Rob Nijst reckons the outlook for his company is very positive, with strong demand for international storage capacity driven by a good market environment and favourable underlying macro trends.
Announcing the firm’s fourth quarter 2015 results, Nijst said its storage capacity was close to 100 percent utilisation across the portfolio, with strong customer demand supported by contango pricing in a number of oil products.
“The fall in commodity prices has no direct impact on our business model and the key drivers of our business, global product demand and intra-regional flows, are continuing their long-term upward trajectory,” he stated.
“Our terminals have long-term contracts in place with strong counterparties that safeguard the future financial performance of the partnership. Our targeted distribution growth remains unchanged and VTTI BV continues to pursue actively both greenfield and brownfield opportunities to add to our dropdown inventory.”
Total operating income for the fourth quarter 2015 was US$28.1 million while net income was $6.5 million. Adjusted EBITDA hit $47.6 million, compared with the fourth quarter of 2014 of $50.1 million.
The partnership generated $13.7 million of distributable cash flow, compared with $12.7 million in Q4 2014.
Despite the strong underlying trading performance, results were hit by a reduction in excess throughput revenue against the same period the previous year. The decrease was driven by a change in the volume distribution mix across VTTI’s customer contracts.