Vopak’s positive business developments and increase on its EBITDA provide a healthy outlook for its full year performance.
The storage operator reported that its EBITDA increased by 3% to €421 million, which was resulting from higher occupancy rates. EBIT increased by 3% to €291 million.
During the first half of 2016, the company divested UK activities and its Japan terminals and as a result, its overall storage capacity decreased by 700,000 m3 to 33.6 million m3 compared to year-end 2015.
Eelco Hoekstra, CEO of Vopak, says: ‘We see that the growing imbalances of refined petroleum products are further impacted by global developments such as liberalisations in markets like Mexico and Indonesia, China’s transition towards a service-driven economy, and the gradual return of Iran onto the world energy market.
‘Growing population, urbanisation and increasing wealth levels drive demand in end markets. Therefore, we expect demand for chemicals to grow in the long term, particularly in Asia.’
He adds that the global LNG market conditions continue to be challenging due to an ‘intensifying oversupply’. However looking ahead, there appears to be a trend in market towards more trading.
Hoekstra says: ‘Vopak continues to diligently assess the changing energy landscape. In line with the key messages set out during our capital markets update in 2016, there will be a step-by-step increasing need for better and more storage infrastructure.
‘We maintain our focus on seizing new opportunities in order to further strengthen our leading position in an agile industry. This is also supported by recently commissioned terminals, such as the independent LPG facility in Singapore, as well as recently announced projects like our new operations in Panama and the intention to expand Vopak Terminal Deer Park in Houston with 130,000 m3 for chemical storage.’