The increase in revenues came primarily from capacity expansions in the Netherlands (0.6 million cbm), partly offset by lower occupancy rates. The average occupancy rate was 91% (2011: 93%). Revenues from contracts with original durations of longer than 1 year accounted for 82% of total revenues (2011: 81%).

Highlights for 2012 – excluding exceptional items – :

• Group operating profit before depreciation and amortization (EBITDA) increased 20% to EUR 763.6 million (2011: EUR 636.0 million). As a result, Vopak already achieved the earlier indicated 2013 outlook of EUR 725-800 million EBITDA in 2012.
• Group operating profit (EBIT) rose 19% to EUR 560.9 million (2011: EUR 469.4 million).
• Net profit attributable to holders of ordinary shares increased 25% to EUR 343.6 million (2011: EUR 275.4 million) and earnings per ordinary share (EPS) increased 25% to EUR 2.70 (2011: EUR 2.16).
• Vopak’s worldwide storage capacity increased during 2012 by 2.1 million cbm to 29.9 million cbm.

Outlook:

• Taking into account the 20% EBITDA growth in 2012, the modest planned capacity expansions in 2013, no material changes in product outlook assumptions resulting in an expected average occupancy rate of around 90%, higher pension charges, and the negative foreign exchange developments year to date, Vopak expects a relatively limited EBITDA growth for 2013. The long-term financing activities completed in 2012 will weigh on EPS development due to higher net financing costs.
• Projects under construction will add 5.2 million cbm of storage capacity in the years up to and including 2015. The total investment for Vopak and partners in expansion projects involves capital expenditure of some EUR 2.1 billion, of which Vopak’s total remaining cash spend will be some EUR 0.6 billion.

Eelco Hoekstra, Chairman of the Executive Board and CEO of Royal Vopak:

“Vopak successfully grew in size and earnings in 2012, and we are proud to have achieved this given the slowdown of the global economy. With regards to sustainability, we improved our process and own employee safety results in 2012 compared to previous years. However, we regrettably experienced two contractor fatalities. With an EBITDA growth of 20% resulting in an EBITDA of EUR 763.6 million, Vopak already achieved its 2013 outlook of EUR 725-800 million EBITDA in 2012. This was mainly due to the successful execution of profitable expansion projects, our continuous focus on operational efficiency and service improvements, while benefiting from a positive currency translation effect.

Following the disciplined execution of our growth strategy, we commissioned the second phase at Vopak Terminal Amsterdam Westpoort (the Netherlands), the sixth phase at our terminal in Fujairah (UAE), the first phase of the new Vopak Tianjin Lingang terminal (China), the new Vopak Eemshaven terminal (the Netherlands), and several other expansion projects in 2012, adding 2.1 million cbm to our global terminal network. In addition, we are excited about last year’s strategic joint acquisition of the assets of the former Coryton refinery in the UK, aimed at creating a state-of-the-art import and distribution terminal for oil products.

Although the uncertainty of economic recovery is likely to continue to dictate the agenda for the coming year, we remain confident in the long-term outlook for our business. The development of the global economy will require additional movement of hydrocarbons, chemicals and vegetable oils. We believe we are well positioned to continue creating value by providing our services globally in the most safe, sustainable and efficient manner. At the same time, we realize we face several short-term challenges on the road towards our long-term objectives, such as the prolonged backwardated oil market and the effects of a stronger euro. We will focus our efforts on the areas we can influence to direct our own future.

Vopak will mark 400 years of existence in 2016. Based on current projects under construction and potential opportunities for further expansion of Vopak’s network of terminals, it is our ambition to realize an EBITDA of EUR 1 billion in 2016. In order to achieve this ambition, the approval and successful execution of additional profitable expansion projects are required.”

The growth of Vopak’s global network of oil terminals will continue in the next two years, with new hub terminals commissioned in Spain (Algeciras, 2013), China (Hainan, 2014) and Malaysia (Pengerang, 2014). These will provide customers with a competitive position and flexible trade options. In addition, Vopak continues to explore investment opportunities in potential new hub locations, such as Panama and West Africa, and in structural import or export areas.