Vopak has reported revenues of €603.2 million for the first half of 2021 (HY1), up from €589.3 million in HY1 2021, but the group operating profit (EBIT) has fallen from €256.8 million on HY1 2021 to €245.9 million.
The Q2 2021 revenues of €303.1 million are up slightly from €300.1 million in Q1 2021 and an increase on Q2 2020’s figure of €292.4 million. The Q1 2021 EBIT is down €5.2 million on the same period in 2020.
The company says that it has recognised an incremental impairment of €69.7 million for its Bahia las Minas terminal in Panama, due to a deteriorating business environment and lower occupancy rates, which has affected the figures. Additionally, negative currency translation effects amounted to €15 million, and adjusted for that, Vopak says that EBITDA increased by €19 million in HY1 2021, while EBIT increased by €1 million.
The proportional occupancy rate at Vopak terminals is unchanged at 88%, which the company says reflects positive movements in the Netherlands, Belgium and Singapore offset by Fujairah, Panama and Indonesia.
‘In the first half of 2021, combined strategic delivery and financial performance was good, driven by contributions from the growth projects and cost efficiency, notwithstanding weak markets. We continued transforming our portfolio for the future and invested more than €146 million in growth,’ says Royal Vopak CEO Eelco Hoekstra, adding that the COVID-19 pandemic with disruptions in supply and demand continues to indirectly impact performance.
He continues: ‘The tank storage industry experienced lower earnings as it continues to face supply tightness leading to a lower requirement for excess storage of products. During these challenging times, we were able to safely serve and support our customers at all our locations around the world. We are positive on the speed of the shift of our portfolio to industrial and gas infrastructure which supports the acceleration in the field of new energies and feedstocks. We are pursuing various options to actively contribute towards hydrogen and ammonia logistics, and new infrastructure solutions for CO2 and flow batteries.’
A number of Vopak projects reported updates in Q2 2021. The company’s 290,000 m3 green greenfield industrial terminal in Qinzhou, China, started operations and it won a contract from Huizhou QuanMei Petrochemical Terminal Co for storage and services for a new liquid product terminal for ExxonMobil’s proposed Huizhou chemical complex in China. A major maintenance turnaround project at the Gate terminal in Rotterdam, the Netherlands, began on 15 June 2021 and was successfully completed on schedule on 10 July 2021. The terminal is investing in in a send-out capacity increase of 0.5 BCM per year to a total of 12.5 BCM per year, which will be available from 1 October 2024. Vopak also recently formed a partnership with Indian oil, gas and chemical logistics firm Aegis Logistics to operate eight LPG and chemical storage terminals in India. Vopak Terminal Corpus Christi, in the US has completed cold commissioning and will receive its first products as planned later in 2021 for the Gulf Coast Growth Ventures industrial complex.
‘In the United States, we expect the commissioning of our ammonia operations of the Vopak Moda Houston terminal in Q3 and the integration of industrial terminals of Dow with Blackrock as partner is progressing well,’ says Hoekstra. ‘We continued the roll-out of our cloud-based system for our terminals, as part of broader efforts to develop our digital architecture to innovate infrastructure and logistic chains. Our digital strategy aims to innovate and will allow us to have more access to data in all aspects of our business.’
Vopak is additionally investigating the development of an independent hub terminal for liquid CO2 on the Maasvlakte in Rotterdam. In collaboration with Gasunie and Gate terminal, which will be linked to depleted gas fields in the North Sea. The terminal may also act as a source of CO2 as a raw material. Vopak Ventures, which supports start-ups and scale-ups in new technologies and emerging value chains, has most recently added Xcycle, which aims to convert plastic waste into high quality feedstock.
Vopak will allocate most of its growth investments in the coming period towards industrial, gas and new energies infrastructures. It maintains a positive view on chemicals and will reduce new growth investments in oil infrastructure except to strengthen leading hub positions.