Royal Vopak has experienced an increase in its revenues of 8% to €53 million primarily due to a higher average occupancy rate.
In its first half year of 2015 financial results, the storage operator noted that this increase was due to the ‘positive sentiment’ in the market for oil products, primarily in the Netherlands.
However the divestment of its various assets, following its revised business strategy, took out €8.9 million from the revenues.
Overall, Vopak’s EBITDA increased by 11% to €408 million as a result of the occupancy rates and the positive effects of currency translation.
In the first half of the year, Vopak divested seven terminals and two plots of land. As a result, its worldwide storage capacity decreased by 1.1 million m3 to 32.7 million m3 compared to the end of 2014.
In the first half of the year total investments amounted to €257.8 million of which €179.8 million was invested in property, plant and equipment. Of this, €71.6 million was invested in expansions at existing terminals.
Looking ahead to the end of the year, Vopak expects that the EBITDA – excluding exception items – of the second half of the year will be no higher than the EBITDA of the first six months of 2015 due to the impact of divestments and the more challenging business circumstances in Asia.
Chairman and CEO Eelco Hoekstra says that the company experienced the effects of the slowdown of economic growth in China as well as an overall challenging competitive business environment.
He says: ‘In the first half of 2015 we are encouraged by a solid financial performance with improved overall results. This performance was supported by healthy demand for our services, mainly in Europe and the Americas, and positive foreign currency exchange rate developments.
‘We are on track with the execution of our strategy as communicated on July 2 2014. We will continue to align our global terminal network with the long-term trends in the energy, chemicals and gas markets.
‘The Asia division is expected to contribute less in the remainder of the year due to challenging business circumstances and the initially delayed positive contribution of our new joint venture terminals in China.’