Royal Vopak: Interim Update YTD Q3 2019
| Q3 2019 | pro forma Q3 2019* | Q2 2019 | Q3 2018 | In EUR millions | YTD Q3 2019 | pro forma YTD Q3 2019* | YTD Q3 2018 | YTD Q3 '19-'18 |
| 312.4 | 312.4 | 316.8 | 311.4 | Revenues | 953.8 | 953.8 | 937.5 | 2% |
| Results -excluding exceptional items- | ||||||||
| 202.4 | 190.3 | 208.0 | 182.7 | Group operating profit before depreciation and amortization (EBITDA) | 625.0 | 588.6 | 553.6 | 13% |
| 132.6 | 128.1 | 137.4 | 116.0 | Group operating profit (EBIT) | 407.0 | 394.6 | 352.7 | 15% |
| 91.1 | 91.5 | 89.6 | 70.5 | Net profit attributable to holders of ordinary shares | 264.0 | 266.2 | 210.7 | 25% |
| 0.72 | 0.72 | 0.70 | 0.55 | Earnings per ordinary share (in EUR) | 2.07 | 2.09 | 1.65 | 25% |
| Results -including exceptional items- | ||||||||
| 393.7 | 381.6 | 224.4 | 204.7 | Group operating profit before depreciation and amortization (EBITDA) | 833.8 | 797.4 | 571.8 | 46% |
| 323.9 | 319.4 | 153.8 | 138.0 | Group operating profit (EBIT) | 615.8 | 603.4 | 370.9 | 66% |
| 280.6 | 281.0 | 106.0 | 36.7 | Net profit attributable to holders of ordinary shares | 471.0 | 473.2 | 174.1 | 171% |
| 2.20 | 2.20 | 0.83 | 0.28 | Earnings per ordinary share (in EUR) | 3.69 | 3.71 | 1.36 | 171% |
| 185.7 | 170.7 | 192.9 | 155.6 | Cash flow from operating activities (gross) | 537.4 | 495.8 | 496.6 | |
| 225.0 | 225.0 | -151.8 | -160.1 | Cash flow from investing activities (including derivatives) | -106.8 | -106.8 | -358.4 | |
| Additional performance measures | ||||||||
| 231.8 | 218.4 | 239.3 | 204.4 | Proportional EBITDA -excluding exceptional items- | 711.2 | 671.3 | 615.1 | 16% |
| 82% | 84% | 86% | Occupancy rate subsidiaries | 84% | 86% | |||
| 35.5 | 36.9 | 36.7 | Storage capacity end of period (in million cbm) | 35.5 | 36.7 | |||
| 12.0% | 12.0% | 12.5% | 11.8% | Return on Capital Employed (ROCE)** | 12.4% | 12.4% | 11.9% | |
| 4,252.2 | 4,252.2 | 4,246.5 | 3,935.9 | Average capital employed** | 4,246.1 | 4,246.1 | 3,961.8 | |
| 2,319.6 | 1,754.6 | 2,618.4 | 1,676.3 | Net interest-bearing debt | 2,319.6 | 1,754.6 | 1,676.3 | |
| 2.81 | 2.81 | 2.99 | 2.22 | Senior net debt : EBITDA | 2.81 | 2.81 | 2.22 | |
| * Pro forma excludes the IFRS 16 effects to allow comparison on the results to prior year ** ROCE and Capital employed definition have been applied consistently for all periods presented and is not affected by IFRS 16 | ||||||||
Highlights for YTD Q3 2019 -excluding exceptional items-:
- EBITDA of EUR 625 million (YTD Q3 2018: EUR 554 million) increased by EUR 71 million, reflecting good aggregate business performance of EUR 23 million, positive currency translation effects of EUR 12 million and positive IFRS 16 effects of EUR 36 million.
- Occupancy rate of 84% (YTD Q3 2018: 86%) reflects planned temporary conversion activities related to IMO 2020 readiness and ongoing market conditions at oil hub terminals, whereas other market segments remained solid.
- EBIT of EUR 407 million (YTD Q3 2018: EUR 353 million) increased by EUR 54 million, including good performance from new assets, partly offset by hub terminals in Europe and Singapore, positive currency translation effects of EUR 9 million, lower depreciation from terminals classified as held for sale of EUR 20 million and positive IFRS 16 effects of EUR 12 million.
- Return On Capital Employed (ROCE) of 12.4% (YTD Q3 2018: 11.9%).
- Significant increase in net profit attributable to holders of ordinary shares to EUR 264 million (YTD Q3 2018: EUR 211 million) resulting in earnings per ordinary share (EPS) of EUR 2.07 (YTD Q3 2018: EUR 1.65).
Growth projects
- In September 2019, the fourth LNG import terminal was added to the Vopak LNG portfolio by the acquisition of SPEC in Cartagena, Colombia.
- In September 2019 the greenfield terminal Vopak Terminal Panama Atlantic commissioned an additional 80,000 cbm of capacity bringing the total capacity to 200,000 cbm.
- At the end of September 2019, Pengerang Independent Terminals (PITSB) in Malaysia commissioned 215,000 cbm of capacity.
Exceptional items Q3 2019:
- On 30 September 2019, Vopak completed the earlier announced divestment of its terminals in Amsterdam and Hamburg. The total recognized exceptional gain after taxation was EUR 192.0 million.
- In the third quarter of 2019, Vopak recognized an impairment of EUR 2.5 million related to the cancellation of (part of) an IT project as a result of portfolio developments.
Looking ahead:
- Most of the fuel oil capacity conversions for the IMO 2020 bunker fuel regulations have been delivered and will support revenues as from Q4 2019.
- Our efficiency program to support margin development and reduce Vopak's future cost base is expected to be delivered and the targeted cost level of EUR 676 million for 2019, as communicated in Q2 2018 and subject to currency exchange movements, is expected to be outperformed.
- Growth investments amount to approximately EUR 1 billion for the period 2017-2019.
- Vopak will continue to invest in the growth of its global terminal portfolio in 2020 and beyond with growth investment for 2020 that could be in the range of EUR 300 million to EUR 500 million, subject to developments in the business environment.
Subsequent events:
- On 9 October 2019, Vopak announced that it acquired, from the minority shareholder in Vopak Terminal Algeciras, the remaining 20% of the shares of the terminal. Vopak has an agreement with First State Investments for the sale of 100% of the shares in Vopak Terminal Algeciras. The completion of this transaction is subject to customary closing conditions.
The total transaction value of the terminals in Amsterdam, Hamburg and Algeciras is EUR 723 million, including a contingent consideration of EUR 15 million, which is subject to certain revenue conditions. After the completion of the divestment of Algeciras, the transaction will have generated a net pre-tax cash inflow for Vopak of approximately EUR 670 million and a total expected exceptional gain before taxation of around EUR 200 million. - On 4 November 2019, Vopak announces that it will expand Vopak Terminal Linkeroever in the Port of Antwerp in Belgium with 50,000 cbm for chemical products. The Port of Antwerp is one of the main industrial clusters in Western Europe. The additional storage capacity is expected to be commissioned mid 2021.
- On 4 November 2019, Vopak announces that it will expand Vopak Terminal Altamira in Mexico with 40,000 cbm for chemical products. The expansion will facilitate the growing import of chemical products in Mexico and is expected to be commissioned in the second half of 2021.
- On 4 November 2019, Vopak announces that it will develop a joint venture industrial terminal to provide storage and handling services for the chemical manufacturing plants in the Qinzhou Chemical Park in southwest China, together with its partners Shanghai Huayi Group Investment Co and Guangxi Qinzhou Linhai Industrial Investment Co. This industrial terminal, in which Vopak will hold a 51% share, will have an initial capacity of 290,000 cbm and is expected to be commissioned mid 2021.
The analysts’ presentation will be given via an on-demand audio webcast on Vopak’s corporate website www.vopak.com, starting at 10:00 AM CET on 4 November 2019.
For more information please contact:
Vopak Press: Liesbeth Lans - Manager External Communication,
Telephone: +31 (0)10 400 2777 | e-mail: global.communication@vopak.com
Vopak Analysts and Investors: Laurens de Graaf - Head of Investor Relations,
Telephone: +31 (0)10 400 2776 | e-mail: investor.relations@vopak.com
About Royal Vopak
Royal Vopak is the world’s leading independent tank storage company. We store vital products with care. With over 400 years of history and a focus on sustainability, we ensure safe, clean and efficient storage and handling of bulk liquid products and gases for our customers. By doing so, we enable the delivery of products that are vital to our economy and daily lives, ranging from chemicals, oils, gases and LNG to biofuels and vegoils. We are determined to develop key infrastructure solutions for the world’s changing energy systems, while simultaneously investing in digitalization and innovation. Vopak is listed on the Euronext Amsterdam and is headquartered in Rotterdam, the Netherlands. Including our joint ventures and associates, we employ an international workforce of over 5,500 people. As of 4 November 2019, Vopak operates a global network of 68 terminals in 23 countries located at strategic locations along major trade routes, with a combined storage capacity of 35.5 million cbm.
This press release contains inside information as meant in clause 7 of the Market Abuse Regulation. The content of this report has not been audited or reviewed by an external auditor.
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