Vopak has reported Q3 2021 revenues of €309.5 million, up slightly from its Q2 revenues of €303.1 million, and an increase of €12.5 million compared to Q3 2020.
The company’s EBITDA, adjusted for €13 million negative currency effects, increased by €29 million compared to Q3 2020, driven by a growth project contribution of €35 million and improved efficiency. Vopak has reported a proportional occupancy rate of 88%, similar to 2020.
In this quarter, Vopak delivered new capacity of a total of 57,000 m3 at its Antwerp Linkeroever (Belgium) and Rotterdam Botlek (the Netherlands) facilities. It also announced the opening of a new 144,000 m3 terminal on the US Gulf Coast, and that it was considering the strategic options for its terminals in Sydney and Darwin in Australia. Vopak also opened the 25 MW Vopak Solar Park Eemshaven, a joint venture between Vopak, Groningen Seaports, and Whitehelm Capital, and switched completely to green electricity for its Dutch terminal activities. Dick Richelle, a member of the strategic committee of Royal Vopak, has been named as the successor to Eelco Hoekstra, who is stepping down as chairman of the executive board and CEO.
The company has completed a maintenance turnaround programme at its Gate LNG terminal in Rotterdam and will invest in a further regasification capacity expansion at the site of 1 billion m3 per year, resulting in a total capacity of 13.5 billion m3 per year from 1 October 2024. Vopak commissioned ammonia operations in the Vopak Moda Houston terminal in the US.
In its results announcement, Vopak also announced that it is withdrawing from German LNG Terminal, its joint venture with Gasunie and Oiltanking, which plans to develop an import terminal in Brunsbüttel, Germany, by 30 June 2021. The company did not give a reason but says it has taken a €11.1 million hit as a result, but that it remains confident in other LNG projects.
Vopak also gave an update on spending plans. Growth investment is expected to be €275 million below its previously announced range of €300-350 million, allocated through existing committed projects, new business development and pre-final investment decision (FID) feasibility studies in new energies including hydrogen. This is also based on the assumption that the deal with Aegis Logistics to operate eight LPG and chemical storage terminals in India will close in early 2022. Vopak said that it would spend €750-850 million from 2020-2022 or sustaining and service improvement capex and will spend €290 million in 2021. It previously announced plans to spend €30-50 million per year from 2020-2022 to complete its digital terminal management system, and expects the figure to be in the top end of the range in 2021.
‘The majority of growth investments will be allocated towards industrial, gas and new energies infrastructures. Our positive views on chemicals have not changed. New growth investments in oil infrastructure are expected to be reduced and will mostly be targeted towards strengthening our leading hub positions,’ says Vopak.
