Royal Vopak: Interim Update Q1 2021

In EUR millions	Q1 2020	Q4 2019	Q1 2019
Revenues	300.1	303.7	296.9

*Results -excluding exceptional items-*
Group operating profit before depreciation and amortization (EBITDA)	200.4	188.8	200.2
Group operating profit (EBIT)	121.3	108.6	127.0
Net profit attributable to holders of ordinary shares	73.1	56.8	82.7
Earnings per ordinary share (in EUR)	0.58	0.46	0.65

*Results -including exceptional items-*
Group operating profit before depreciation and amortization (EBITDA)	200.4	159.8	198.5
Group operating profit (EBIT)	121.3	79.6	125.3
Net profit attributable to holders of ordinary shares	73.1	24.0	81.0
Earnings per ordinary share (in EUR)	0.58	0.20	0.64

Cash flows from operating activities (gross)	124.0	268.8	142.7
Cash flows from investing activities (including derivatives)	-138.6	-317.5	29.8

*Additional performance measures*
Proportional EBITDA -excluding exceptional items-	245.6	244.4	241.0
Proportional occupancy rate	89%	91%	86%
Storage capacity end of period (in million cbm)	35.7	35.6	34.3
Occupancy rate subsidiaries	88%	90%	84%

Return on capital employed (ROCE)	10.3%	11.0%	11.5%
Average capital employed	4,478.3	4,184.0	4,252.0
Net interest-bearing debt	2,723.6	2,589.4	2,321.9
Senior net debt : EBITDA (for debt covenant)	2.60	2.52	2.65

Highlights for Q1 2021 -excluding exceptional items-:

EBITDA of EUR 200 million (Q1 2020: EUR 200 million). Adjusted for negative currency translation effects, EBITDA grew by EUR 10 million (5%) reflecting new contributions from growth projects and negative impact from tight chemical markets as a result of amongst others the Texas winter storm.
Proportional occupancy rate of 89% (Q1 2020: 86%) reflected improved demand compared to the same period last year.
Cost efficiency measures are tracking well and the cost level for Q1 2021 amounted to EUR 149 million (Q1 2020: EUR 153 million) including cost for new growth projects and business development efforts.
EBIT of EUR 121 million (Q1 2020: EUR 127 million).
Return on capital employed (ROCE) of 10.3% (Q1 2020: 11.5%).
Net profit attributable to holders of ordinary shares of EUR 73 million (Q1 2020: EUR 83 million), resulting in earnings per ordinary share (EPS) of EUR 0.58 (Q1 2020: EUR 0.65).
Vopak’s senior net debt to EBITDA ratio is 2.60 at the end of Q1 2021, within the target range.

Portfolio items:

At the end of the first quarter of 2021, Vopak started operations of the Vopak Moda Houston terminal (US Gulf Coast) and initial capacity expansions were delivered in Mexico and the Netherlands.
In the second quarter of 2021, the greenfield industrial terminal in Qinzhou, China, with an initial capacity of 290,000 cbm is expected to start operations.
After ten years of continuous, safe and successful LNG operations, Gate terminal in Rotterdam, the Netherlands, will start its major maintenance turnaround to ensure the best in class service for its customers. The maintenance work is scheduled to last for approximately 1 month starting 15 June 2021.

Exceptional items Q1 2021:

There were no exceptional items in Q1 2021.

Subsequent events:

On 21 April 2021, Vopak announced that it signed a Joint Development Agreement with Elestor for
the development of a hydrogen bromine flow battery. The joint ambition is to scale up the electricity storage capacity of these flow batteries from 200 kWh to 3,000 kWh in a period of 2 years and then further develop it to industrial scale. This development is part of Vopak’s New Energy strategy.

Looking ahead:

In 2021, EBITDA contributions from 2020 and 2021 growth projects are expected to be at the higher end of the EUR 30 million to EUR 50 million range, subject to market conditions and currency exchange movements.
Cost management continues and we expect to manage the 2021 cost base including additional cost for new growth projects to be managed below EUR 615 million, subject to currency exchange movements.
Vopak has the ambition to allocate some EUR 300 million to EUR 350 million to growth investments in 2021 through existing committed projects, new business development and pre-FID feasibility studies in new energies including hydrogen.
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.

For 2021 and beyond, we will keep storing vital products with care to make a meaningful contribution to society, enabled by our financial performance.

The analysts’ presentation will be given via an on-demand audio webcast on Vopak’s corporate website, starting at 8:45 AM CEST on 21 April 2021.

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 and feedstock systems, while simultaneously investing in digitalization and innovation. Vopak is listed on the Euronext Amsterdam and is headquartered in Rotterdam, the Netherlands. For more information, please visit vopak.com.

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.