Vopak, the world’s largest independent tank storage provider, has reported a 10% increase in its quarter one 2015 revenues thanks to a higher demand in the oil market and a growth in capacity.
The company’s total revenues increased by €31.5 million to €349.5 million compared to quarter one in 2014. Additionally, storage capacity has also increased by 10% to 34 million m3.
EBITDA increased by 15% to €206 million, due to a combination of higher occupancy rates caused by higher demand in the oil market, increased capacity and favourable currency translation effects.
Eelco Hoekstra, chairman of the executive board and CEO, says: ‘In Q1 2015 we delivered improved financial results compared to the same period last year. This improvement was mainly driven by higher demand in the oil market, growth of our storage capacity and favourable currency effects.
‘We were able to increase the overall occupancy rates while expanding our worldwide storage capacity to 34 million m3. The higher occupancy rate in Europe was partially offset by lower occupancy rates in Asia and Americas due to the slowdown of economic growth and due to a dynamic and volatile spot market in Asia.
‘Despite an overall increased demand for our storage and handling services in our well-positioned global network, the competitive and dynamic business environment in certain product-market combinations remained.
‘Going forward, we will continue with the disciplined execution of our strategy and we will maintain our long-term focus on delivering stable returns and on free cash flow generation from our infrastructure portfolio.’
Storage demand for chemicals is steady, Vopak reports, however biofuels storage remains challenging. Average occupancy rates at subsidiaries increased from 88% for the first quarter of 2014 to 91% for the first quarter of 2015.
In Europe, the Middle East and Africa revenues increased by 8% to €68.3 million – an increase that was primarily driven by an improved occupancy rate of the Sweden terminals.
In Asia, revenues increased by €8.9 million due to a positive currency translation effect of €11.8 million. Excluding the currency translation effect – the decrease in revenues was mainly caused by lower occupancy rates in Singapore and China, due to a competitive and dynamic spot market and changes in the product mix.
The Americas division enjoyed a revenues increase of €10.7 million mainly due to improved performance at its US terminals as well as the contribution by Canterm. These effects were partially offset by the divestment of the terminal in Peru, the terminal Galena Park in Houston and the terminals in Wilmington.
Vopak expects to add 5.8 million m3 capacity globally by the end of 2019.