Vopak profits up in Q1 2022, selling Canadian terminals

Dutch terminal company Vopak has reported a Q1 2022 group operating profit (EBIT) of €125.8 million, up from €115 million in Q4 2021 and €120.7 million in Q1 2021.

Q1 2022 revenues were €324.1 million, up from €315.2 in Q4 2021 and €300.1 million in Q1 2021. The positive results were driven by a combination of factors including good performance in the Americas, offsetting challenging conditions in Europe, and a positive currency translation effect, partially offset by higher depreciation. Proportional occupancy rate in Q1 2022 was 84%, slightly down on Q4 2021, but Vopak says this was ‘driven by low occupancy performance in oil storage in the Netherlands as a result of continued soft storage markets for oil.’

In the results announcement Vopak says it has signed an agreement to sell four terminals in Canada – Hamilton, Montreal East and West and Quebec City, and expects proceeds of €116 million, which will be used for debt repayment. Vopak has completed a strategic review of its Australian assets and decided to keep operating them, due to solid Australian markets.

Meanwhile, Uniper has increased its capacity rights at Gate LNG Terminal, Vopak’s joint venture with Gasunie, by 1 billion m3 from October 2022. The joint venture partners had announced in October 2021 that they would increase Gate’s send-out capacity by a further 1 billion m3 per year, with the new capacity available from 1 October 2024, but are now also investigating if capacity can be expanded further in the short-term.

Vopak underlined its commitment to following EU and government regulations regarding energy imports from Russia. While the situation resulting from Russia’s war in Ukraine is causing volatility and uncertainty, Vopak expects direct impacts on the company to be limited. There will be some indirect exposure due to factors such as utility prices, inflation, market conditions and exchange rates.

Looking forward, Vopak says it is on track to meet its previously announced target of €110 million-125 million EBITDA contribution in 2023 from growth projects. In 2022, growth investments are expected to be below €300 million.

(Source: Tank Storage Magazine)

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