Vopak plans to expand its terminal in Vietnam with additional chemical storage capacity and its facility in Mexico with more petroleum products storage.
In its 2018 financial report, the company said that it will add 20,000 m3 of storage for chemicals at its terminal in Vietnam. The additional storage is expected to be commissioned in the first quarter of 2020.
Additionally, the company also plans to expand its terminal in Veracruz in Mexico with 110,000 m3 for the storage and handling of clean petroleum products. The expansion already has high commercial coverage and is expected to be fully commissioned in the fourth quarter of 2020.
In January, Vopak acquired an additional 35% share in Vopak Terminal Ningbo in China, bringing the total share in this chemicals terminal to 85% and effectively obtained control.
The company’s IMO 2020 related projects are ongoing and progressing to schedule.
In 2018, the company achieved an EBITDA of €734 million, which was €10 million lower than 2017 as a result of oil mark conditions, partly compensated by the company’s cost efficiency programme.
Occupancy rates were also lower than 2017, with 86% recorded compared to 90% due to market conditions at oil hub terminals, however other product market segments were stable.
Eelco Hoekstra, CEO, says: ‘Given the market conditions in 2018, we delivered solid financial results and increased earnings per share by remaining focused on business opportunities. To meet the increasing global demand for the product we store, we made significant progress in shifting the portfolio and realising our digital transformation.
‘We are excited that we have been able to announce significant expansion projects over the last few years, meeting new consumer demands. The execution of this strategy is leading to a further shift in our portfolio towards industrial terminals and terminals for chemicals, LNG, LPG and chemical gases. Expansion projects in these areas are currently underway in Malaysia, Indonesia, Canada, Brazil, and the Netherlands.
‘We acquired a share in Pakistan’s LNG import facility, commissioned the first phase of our new industrial terminal in Pengerang and expanded our chemical presence in Houston. End 2018, we delivered 1.1 million m3 of our 3.2 million m3 expansion program towards end 2019. In addition, we commenced major service improvement projects to strengthen our chemical storage positions globally and initiated investments in our oil hub terminals in preparation for the IMO 2020 bunker fuel regulations.
‘We have also made progress in our digital transformation. Our new unique cloud-based digital terminal management system is now in place at the first terminals in Americas and Asia. We strengthened our cybersecurity programme. We believe that our digital transformation is key to growing our competitive edge and capturing the opportunities of the digital era.
‘For 2019 and beyond, we continue to focus on delivery of short-term performance and seizing long-term opportunities, delivering value today and creating value for tomorrow for all stakeholders. We take pride in storing vital products with care for a growing world population.’
The company is also progressing with its strategic review, including testing the market value of its terminals in Algeciras, Amsterdam, Hamburg and Tallinn.
Vopak’s 3.2 million expansion programme over 2018 and 2019, with high commercial coverage, continues. At the end of the fourth quarter of 2018, 1.1 million m3 was commissioned and 2.1 million m3 ill be delivered over the course of 2019. The company says that with this expansion programme along with its cost efficiency programme, it has the potential to significantly improve its 2019 EBITDA, subject to market conditions and currency exchange movements.