Financial results for Vopak's operations in the Netherlands were below expectations, however its operations in the Americas are above expectations.
In its first half 2017 report, the company says that its EBITDA of €394 million, a reduction of 6%, reflects a positive market sentiment in the Americas and a stable business environment for its terminals in Asia and Europe, Middle East and Africa. However, the market environment in the Netherlands has weakened compared to 2016.
As such, it has announced new growth projects totalling 387,000 m3, with an expansion at its Pengerang oil terminal in Malaysia of 430,000 m3 as well as its Alemoa terminal in Brazil with an additional 44,900 m3.
It says it is on track with the completion of the current slate of projects under construction, amounting to 3.2 million m3 of capacity, of which most are backed by commercial storage contracts.
Additionally, the company's efficiency programme to reduce its future cost base with at least €25 million by 2019 is well underway.
Looking ahead, Vopak expects that its 2017 EBITDA will be around 5% to 10% lower than the 2016 EBITDA due to lower occupancy rates, additional costs related to investments, missing contributions from its divested terminals in early 2016 and the foreign currency exchange developments in 2017.
Eelco Hoekstra, CEO, says: 'Although our EBITDA is lower compared to last year, I am encouraged with the ongoing transition of our global portfolio. While focusing our business development efforts more on projects related to chemical and industrial terminals, and terminals facilitating the global gas markets, [...] we are still pursuing oil related opportunities in emerging countries.
'Although we cannot influence the supply and demand of commodities in a business environment characterised by increasing competition, geopolitical developments and volatility in the energy and financial markets, we can influence the quality of our capital investments, lowering operating costs and improving our service.
'In order to support the successful realisation of our 2019 ambitions, we have defined several actions throughout the various levels of the organisation, from further streamlining the divisional structure of the company to simplifying processes.'
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