| Q4 2018 | Q3 2018 | Q4 2017 | In EUR millions | 2018 | 2017 | |
| 317.0 | 311.4 | 324.5 | Revenues | 1,254.5 | 1,305.9 | - 4% |
| Results -excluding exceptional items- | ||||||
| 180.7 | 182.7 | 192.7 | Group operating profit before depreciation and amortization (EBITDA) | 734.3 | 763.2 | - 4% |
| 110.6 | 116.0 | 123.0 | Group operating profit (EBIT) | 463.3 | 490.4 | - 6% |
| 78.8 | 70.5 | 76.2 | Net profit attributable to holders of ordinary shares | 289.5 | 287.4 | 1% |
| 0.62 | 0.55 | 0.59 | Earnings per ordinary share (in EUR) | 2.27 | 2.25 | 1% |
| Results -including exceptional items- | ||||||
| 183.0 | 204.7 | 100.9 | Group operating profit before depreciation and amortization (EBITDA) | 754.8 | 695.3 | 9% |
| 110.8 | 138.0 | 31.2 | Group operating profit (EBIT) | 481.7 | 422.5 | 14% |
| 80.4 | 36.7 | -0.2 | Net profit attributable to holders of ordinary shares | 254.5 | 235.4 | 8% |
| 0.63 | 0.28 | 0.00 | Earnings per ordinary share (in EUR) | 1.99 | 1.85 | 8% |
| Cash Flow from operating activities (gross) | 687.0 | 713.8 | - 4% | |||
| Cash Flow from investing and divesting activities | -589.4 | -320.6 | 84% | |||
| Additional performance measures | ||||||
| 10.8% | 11.8% | 12.2% | Return on Capital Employed (ROCE) | 11.6% | 12.0% | |
| 85% | 86% | 89% | Occupancy rate subsidiaries | 86% | 90% | |
| 37.0 | 36.7 | 35.9 | Storage capacity end of period (in million cbm) | 37.0 | 35.9 | |
| Average capital employed | 4,005.7 | 4,101.7 | ||||
| 1,825.0 | 1,676.3 | 1,533.9 | Net interest-bearing debt | 1,825.0 | 1,533.9 | |
| 2.49 | 2.22 | 2.02 | Senior net debt : EBITDA | 2.49 | 2.22 |
Highlights for full year and Q4 2018 -excluding exceptional items-:
- EBITDA of EUR 734 million (2017: EUR 763 million). Adjusted for currency translation effects of EUR 19 million, EBITDA was EUR 10 million lower than prior year as a result of oil market conditions partly compensated by the cost efficiency program
- EBIT of EUR 463 million (2017: EUR 490 million). Adjusted for currency translation effects of EUR 14 million, EBIT was EUR 13 million lower than prior year
- Occupancy rate of 86% (2017: 90%) reflected market conditions at oil hub terminals whereas other product-market segments were stable
- Return on Capital Employed of 11.6% (2017: 12.0%)
- Net profit attributable to holders of ordinary shares of EUR 290 million (2017: EUR 287 million) resulting in higher earnings per ordinary share (EPS) of EUR 2.27 (2017: EUR 2.25)
- Q4 EBITDA of EUR 181 million included net one-off cost items of EUR 7 million mainly relating to the Europe & Africa and China & North Asia divisions
- Our worldwide storage capacity measured on a 100% basis increased by 1.1 million cbm in 2018. Our growth portfolio will add a further 2.1 million cbm of storage capacity to our global network in 2019
- Vopak's strategic review and testing of the market value of its terminals in Algeciras, Amsterdam, Hamburg and Tallinn, as announced in the Q2 2018 press release, is in progress and on schedule
A dividend of EUR 1.10 (2017: EUR 1.05) per ordinary share, payable in cash, will be proposed during the Annual General Meeting on 17 April 2019
Looking ahead:
- Given our 3.2 million cbm expansion program over 2018 and 2019, with high commercial coverage, in conjunction with the cost efficiency program, Vopak has the potential to significantly improve the 2019 EBITDA, subject to market conditions and currency exchange movements. At the end of Q4 2018, 1.1 million cbm was commissioned and 2.1 million cbm will be delivered over the course of 2019
- Our efficiency program to support margin development and reduce Vopak's future cost base was increased to EUR 40 million by the end of 2019. As a result the cost base for 2019 including EUR 15 million additional cost from growth projects, is expected to be below the 2017 reported operating expenses of EUR 676 million subject to currency exchange movements, activity levels and portfolio decisions
- Vopak formalized the agreement regarding a new pension plan in the Netherlands, resulting in a gain of EUR 19.1 million on the settlement of the Dutch Pension Plan
- As a result of the deconsolidation of our wholly-owned terminal in Venezuela, the income statement includes the effect of recycling historical unrealized currency translation losses from equity to the income statement, reducing the reported net income with EUR 51.0 million, mainly in the net finance expenses, with a neutral effect to total shareholders' equity and no effect on cash
- An exceptional gain of EUR 4.8 million was recognized in connection with a reversal of impairment at Vopak Vietnam. This gain was offset by a partial impairment of EUR 4.6 million at our terminal in India
Subsequent events:
- On 23 January 2019, Vopak acquired an additional share of 15% in the associate Engro Elengy Terminal (LNG Division), bringing the total share in this joint venture to 44%. This LNG import facility consists of an LNG jetty and high-pressure gas pipeline and holds a 15 year Floating Storage and Regasification Unit (FSRU) time charter
- On 25 January 2019, Vopak acquired an additional 35% share in Vopak Terminal Ningbo (China & North Asia division), bringing the total share in this chemicals terminal to 85%. By means of this transaction, Vopak obtained control over the terminal and the interest held in the terminal was at that date classified as a subsidiary and no longer as a joint venture
- On 13 February 2019, Vopak announced that it will expand its terminal in Vietnam (China & North Asia division) with 20,000 cbm for the storage and handling of chemicals. The additional storage capacity is expected to be commissioned in Q1 2020
- On 13 February 2019, Vopak announced that it will expand its terminal in Veracruz in Mexico with 110,000 cbm for the storage and handling of clean petroleum products. Mexico is a deficit market which has opened. This expansion already has high commercial coverage and is expected to be fully commissioned in Q4 2020
Royal Vopak Chief Executive Officer Eelco Hoekstra comments:
Solid results in 2018, on track for 2019
Well positioned for future opportunities
"Given the market conditions in 2018, we delivered solid financial results and increased earnings per share by remaining focussed on business opportunities. The execution of our strategy is well on track. To meet the increasing global demand for the products we store, we made significant progress in shifting the portfolio and realizing our digital transformation.
We are excited that we have been able to announce significant expansion projects in the last 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 cbm of our 3.2 million cbm 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.
One more reason for excitement is the progress that we have made 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 program. 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."
Link to video of CEO and CFO commenting on Vopak's FY 2018 results
Link to Vopak's reports and presentations
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