Vopak reports on HY1 2021 results
28 Juli 2021 - 7:00AM
Vopak reports on HY1 2021 results
Vopak reports on HY1 2021 financial
resultsRotterdam, the Netherlands, 28 July 2021
Q2 2021 |
Q1 2021 |
Q2 2020 |
In EUR millions |
HY1 2021 |
HY1 2020 |
303.1 |
300.1 |
292.4 |
Revenues |
603.2 |
589.3 |
|
|
|
|
|
|
|
|
|
Results
-excluding exceptional items- |
|
|
206.2 |
200.4 |
202.4 |
Group operating profit before depreciation and amortization
(EBITDA) |
406.6 |
402.6 |
124.6 |
121.3 |
129.8 |
Group operating profit (EBIT) |
245.9 |
256.8 |
76.1 |
73.1 |
83.4 |
Net profit attributable to holders of ordinary shares |
149.2 |
166.1 |
0.61 |
0.58 |
0.66 |
Earnings per ordinary share (in EUR) |
1.19 |
1.31 |
|
|
|
|
|
|
|
|
|
Results
-including exceptional items- |
|
|
136.5 |
200.4 |
235.4 |
Group operating profit before depreciation and amortization
(EBITDA) |
336.9 |
433.9 |
54.9 |
121.3 |
162.8 |
Group operating profit (EBIT) |
176.2 |
288.1 |
6.4 |
73.1 |
116.4 |
Net profit attributable to holders of ordinary shares |
79.5 |
197.4 |
0.05 |
0.58 |
0.91 |
Earnings per ordinary share (in EUR) |
0.63 |
1.55 |
|
|
|
|
|
|
141.5 |
124.0 |
264.7 |
Cash flows from operating activities (gross) |
265.5 |
407.4 |
-153.3 |
-138.6 |
-171.4 |
Cash flows from investing activities (including
derivatives) |
- 291.9 |
- 141.6 |
|
|
|
|
|
|
|
|
|
Additional performance measures |
|
|
249.5 |
245.6 |
245.6 |
Proportional EBITDA -excluding exceptional items- |
495.1 |
486.6 |
22.3 |
22.2 |
21.4 |
Proportional capacity end of period (in million cbm) |
22.3 |
21.4 |
88% |
89% |
90% |
Proportional occupancy rate |
88% |
88% |
35.9 |
35.7 |
34.4 |
Storage capacity end of period (in million cbm) |
35.9 |
34.4 |
87% |
88% |
88% |
Subsidiary occupancy rate |
87% |
86% |
|
|
|
|
|
|
10.6% |
10.3% |
12.1% |
Return on capital employed (ROCE) |
10.5% |
11.8% |
4,644.8 |
4,478.3 |
4,105.2 |
Average capital employed |
4,552.8 |
4,190.1 |
2,927.2 |
2,723.6 |
2,450.4 |
Net interest-bearing debt |
2,927.2 |
2,450.4 |
2.86 |
2.60 |
2.81 |
Senior net debt : EBITDA |
2.86 |
2.81 |
3.09 |
2.82 |
2.81 |
Total net debt : EBITDA |
3.09 |
2.81 |
Highlights for HY1 2021 -excluding
exceptional items-:
- EBITDA of EUR 407 million (HY1
2020: EUR 403 million). Adjusted for EUR 15 million negative
currency translation effects, EBITDA increased by EUR 19 million
(5%). Growth project contribution in the first half 2021 is driving
positive EBITDA performance in soft business conditions.
- Proportional occupancy rate of 88%
(HY1 2020: 88%) unchanged reflecting positive movements in the
Netherlands, Belgium and Singapore offset by Fujairah, Panama and
Indonesia.
- Cost efficiency measures are
tracking well and the cost level for HY1 2021 amounted to EUR 298
million (HY1 2020: 295 million) including cost for growth projects
and business development efforts.
- EBIT of EUR 246 million (HY1 2020:
EUR 257 million), adjusted for negative currency translation
effects, EBIT increased by EUR 1 million. Depreciation charges were
higher in HY1 2021 compared to HY1 2020 mainly due to higher
depreciation for new capacity delivered as well as due to
sustaining capex investments.
- Return on capital employed (ROCE)
of 10.5% (HY1 2020: 11.8%).
- Net profit attributable to holders
of ordinary shares of EUR 149 million (HY1 2020: EUR 166 million)
reflecting less capitalized interest in HY1 2021.
- Earnings per ordinary share (EPS)
of EUR 1.19 (HY1 2020: EUR 1.31).
- The Senior net debt: EBITDA ratio
is 2.86 at the end of HY1 2021.
Q2 2021
events:
- In the second quarter of 2021, the
greenfield industrial terminal in Qinzhou, China, with an initial
capacity of 290,000 cbm started operations.
- On 22 June 2021, Vopak announced
that it has been awarded by Huizhou QuanMei Petrochemical Terminal
Co., Ltd., a contract for storage and services of a liquid products
terminal in China. The planned terminal will be constructed and
operated as part of ExxonMobil’s proposed Huizhou chemical complex
project. Vopak will have ownership of 30% of the 560,000 cbm
terminal, including the pipelines to connect the terminal to the
jetty and EMHCC plant.
- After ten years of continuous LNG
operations, Gate terminal in Rotterdam, the Netherlands, started on
15 June 2021 its major maintenance turnaround to ensure the best in
class service for its customers, which was successfully completed
as planned on 10 July 2021. In addition, Gate terminal will invest
in a send-out capacity increase of 0.5 BCM per annum to a total of
12.5 BCM per annum. The additional capacity is planned to become
available as of 1 October 2024.
Exceptional items HY1 2021:
- An incremental impairment was
recognized for the Vopak Bahia las Minas terminal in Panama for an
amount of EUR 69.7 million. This impairment is the result of a
further deteriorating business environment and lower occupancy
rates in the first half of 2021.
Subsequent events:
- On 12 July 2021, Vopak announced that it has joined forces with
Aegis in India with the aim to grow together in the LPG and
chemicals storage and handling business. The new joint venture
Aegis Vopak Terminals Ltd will operate a network of 8 terminals
with a total capacity of around 960 thousand cbm. The transaction
is expected to close early 2022, subject to customary closing
conditions. The enterprise value for Vopak’s shareholding in the
joint ventures will amount to EUR 185 million plus EUR 15 million,
depending on the fulfilment of certain Conditions Precedent. Post
financing Vopak’s net consideration amounts to EUR 100 million plus
EUR 15 million depending on the fulfilment of certain conditions.
In addition to the net consideration at closing of a total EUR 115
million, Vopak and Aegis have agreed the payment of a minimum EUR
18 million and up to a maximum of EUR 40 million payable to Aegis
via a financial instrument. Revenues of the joint venture are
forecasted to grow with a CAGR of around 6% in the first 5 years.
LPG revenues will be about 75% of the total revenues of the joint
venture. On the back of the forecasted revenue growth, the joint
venture is expected to increase EBITDA in line with revenue growth
towards 2026 driven by growth of LPG demand and imports of liquid
chemicals in India. In addition, the joint venture has a pipeline
of growth projects, both brownfield and greenfield.
Portfolio
items:
- Early July 2021, Vopak Terminal
Corpus Christi, in the United States, completed cold commissioning
and is ready to receive first products as planned later this year
to service the industrial complex of Gulf Coast Growth Ventures,
LLC.
Other developments:
- A collaboration between Gasunie,
Vopak and Gate terminal, is investigating the development of an
independent hub terminal for liquid CO2 on the Maasvlakte in the
port of Rotterdam, the Netherlands. Such infrastructure is
important in the context of the Dutch government climate agreement.
The independent hub terminal will be able to receive and deliver
liquid CO2 via ships and will be connected to the depleted gas
fields in the North Sea. This will make the necessary
infrastructure available to all market parties, including parties
that do not have a direct connection to a CO2 pipeline. In
addition, the terminal can be an important catalyst in the creation
of a market for the reuse of CO2 as a raw material.
- Vopak Ventures has made more than
10 investments in start-ups and scale ups over the past two years
in the field of operational excellence and asset management,
sustainability and new energy as well as digital and platforms.
This includes positions in hydrogen equipment and solar. Our newest
added venture Xycle aims to build a plant in the Netherlands with
the goal of converting plastic waste into high quality
feedstock.
Looking ahead:
- In 2021, reported 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.
- In 2023, reported EBITDA
contribution from 2020, and currently approved growth projects, is
expected to be in the range of EUR 110 million to EUR 125 million,
subject to market conditions and currency exchange movements.
Additional projects will further contribute to reported
EBITDA.
- Cost management continues and we
expect to manage the 2021 cost base including additional cost for
new growth projects below EUR 615 million, subject to currency
exchange movements.
- In 2021, growth investment is
expected to be at the low end of the range EUR 300 million to EUR
350 million. The allocation of these investments will be through
existing committed projects, new business development and pre-FID
(Final Investment Decision) feasibility studies in new energies
including hydrogen based on the assumption that the Aegis Vopak
transaction will close early 2022.
- For the period 2020-2022, Vopak
indicated to spend EUR 750 million to EUR 850 million for
sustaining and service improvement capex, subject to additional
discretionary decisions, policy changes and regulatory environment.
For 2021, Vopak expects to reach around EUR 290 million in
sustaining and service capex, based on current views on exchange
rates.
- As part of the strategic direction
for the period 2020-2022, Vopak indicated to invest annually EUR 30
million to EUR 50 million in IT capex to complete Vopak’s digital
terminal management system. For 2021, Vopak expects to be at the
high end of the range in IT capex and we expect this program to be
completed by the end of 2023.
- 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.
Impact of Covid-19 pandemic in
2021:The pandemic spread of Covid-19 (Coronavirus) remains
an impactful event on all people and organizations around the
world. Our first priority in the Covid-19 response is to protect
the health and well-being of our people, their families and the
communities in which we operate. We remain focused in these
circumstances on the short-term delivery and protection of
long-term value. Vopak plays an important role within society by
storing vital products with care. We are doing our utmost during
the Covid-19 pandemic to continue to fulfill this role in all our
work locations around the world.
The pandemic brings more uncertainty with
respect to general operating and market conditions as well as
volatility in currency exchange movements and the estimates remain
subject to future events. We expect to continue to manage our
performance in line with our business plans.
Royal Vopak Chief Executive
Officer Eelco Hoekstra
comments:
Performance“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 EUR 146 million
in growth.
Covid-19 pandemic continues to impact the
industries we serve and the disruptions in supply and demand of
products indirectly impacted performance. 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.
We had success in the first half of 2021 in
India, China and the United States. We are joining forces with
Aegis to create one of the largest independent tank storage
companies for LPG and chemicals in India. Good progress was made in
our China and North Asia division with the start of operation in
the industrial terminal in Qinzhou, China. In addition, we were
awarded an industrial contract for storage and services of a liquid
products terminal to be constructed and operated as part of
ExxonMobil’s proposed Huizhou chemical complex project. 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.
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.
Looking aheadWe have gained
momentum in 2021 in capturing opportunities to serve large-scale
industrial clusters and will continue transforming our portfolio
and position our company in leading locations towards more
sustainable forms of energy and feedstocks.
Our ambition is to be a safety and
sustainability leader by focusing on care for people, planet and
profit. We continue to seek opportunities towards our ambition to
be climate neutral by 2050 at the latest. Our main contribution to
a more sustainable world is to actively innovate infrastructure
which will contribute to the introduction of the new vital products
of the future.”
Link to video of CEO and CFO commenting on
Vopak's HY1 2021 results
Financial calendar12 November
2021 Publication of
2021 third-quarter interim update16 February 2022
Publication of 2021
annual results20 April 2022
Publication of
2022 first-quarter interim update20 April 2022
Annual General Meeting22 April 2022
Ex-dividend
quotation25 April 2022
Dividend record date28
April
2022 Dividend
payment date
About Royal VopakRoyal 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.
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: Fatjona Topciu - Head of Investor Relations,
Telephone: +31 (0)10 400 2776 | e-mail:
investor.relations@vopak.com
The analysts’ presentation will be given via an
on-demand audio webcast on Vopak’s corporate website, starting at
10:00 AM CEST on 28 July 2021.
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.
- Press Release - Vopak reports on HY1 2021 results
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