Vopak has experienced a decrease in its third quarter EBITDA figures as a result of lower occupancy rates.
The company reports that its EBITA decreased by 9% to $571 million, in line with its previous guidance of a 5-10% lower 2017 EBITDA.
However, its occupancy rate of 90% is supported by sound business drivers in all the product-market segments throughout its network. It says in its third quarter financials that the difference with the high 2016 occupancy rate of 94% is primarily due to a less favourable oil market structure.
Compared to the second quarter of 2017, Vopak’s third quarter EBITDA decreased by 8%, mainly driven by lower revenues in Asia and high other expenses, among others related to jetty damage in Singapore. Revenues in the Netherlands remained stable.
The majority of the current projects currently under construction, amounting to 3.2 million m3, are backed by commercial storage contracts, and will start to contribute positively during 2019.
It says that the successful realisation of its efficiency programme in the 2017-2019 period will help reduce its future cost base by at least $25 million.