Highlights for 2013 -excluding exceptional items- :
– Group operating profit (EBIT) decreased by 5% to EUR 536 million (2012: EUR 566 million). Adjusted for adverse currency translation effects (EUR 15 million) the decrease was 3%. The decrease in EBIT(DA) also included higher pension costs compared to 2012, mainly due to a lower applicable discount rate (EUR 17 million).
– Net profit attributable to holders of ordinary shares decreased by 10% to EUR 312 million (2012: EUR 347 million) and earnings per ordinary share (EPS) also decreased by 10% to EUR 2.45 (2012: EUR 2.73).
– As a result of growth projects (1.0 million cbm), partly offset by divestments (0.4 million cbm), Vopak’s worldwide storage capacity increased during 2013 by 0.6 million cbm to 30.5 million cbm.
A dividend of EUR 0.90 (2012: EUR 0.88) per ordinary share, payable in cash, will be proposed to the Annual General Meeting (AGM) on 23 April 2014.

Eelco Hoekstra, Chairman of the Executive Board and CEO of Royal Vopak:
“I am convinced that Vopak is a stronger company than a year ago. But for the first time in ten years, Vopak did not grow its earnings. In the storage sector, we saw continued increased competition due to capacity expansions in certain markets. Additionally, some major construction projects will take longer than anticipated to finalize. We were also adversely affected by changing regulations on biofuels, by the appreciation of the euro against the US dollar and Asian currencies, and by higher pension charges. As a result, we did not realize our ambition to exceed our record 2012 financial results. In line with our revised outlook, the EBITDA for 2013 of EUR 753 million, ended up slightly lower compared to EUR 768 million in 2012.

Yet, all in all, we maintained a very solid earnings profile and continued to make significant progress in essential areas such as safety, service delivery and market knowledge. This enabled us to support our leading position in the global market. The strength of our operating model was re-affirmed in many of our product-market combinations. Our performance in biofuels was mixed. But we saw a steady performance in chemicals across all regions. We had a solid performance in industrial terminals and LNG. And our performance in oil storage business was robust, except for the Netherlands and Los Angeles (US), where we experienced a more volatile demand.

Our strategy over 2013 focused on two priorities. First, we continued to align Vopak’s terminal network with long-term developments in the energy and chemicals markets. Accordingly, over the past year we divested a number of terminals, including in Xiamen (China), in Chile and in Ecuador. We also added new capacity in Banyan (Singapore), in Algeciras (Spain) and in Tianjin (China), among other locations. Second, we kept focusing on improving our competitive position in order to provide our clients with the safest, most sustainable and most cost efficient services. This contributed to the healthy EBITDA margins. To further improve service, we upgraded our terminals in several locations, by adding additional jetties and removing bottlenecks in our infrastructure. On safety, the strong improvement of Vopak’s 2013 overall results was, to our deep regret, tarnished by a contractor fatality in China.

Looking ahead, we will stick to our main priorities within our strategy. We will continue aligning our global terminal network with market dynamics and we will further strengthen our competitive position by improving the service at the terminals. We expect that the current business climate will remain largely unchanged in 2014, with continuing regional divergences. Therefore, exceeding the record EBITDA of 2012 will also remain a challenge in 2014. But we remain confident in the long-term outlook for our business. In addition to our 30 million cubic metres of storage capacity, we are developing another 6.5 million cbm. And, while we keep looking at value-added divestments, we see plenty of opportunities for further profitable expansions.”

Storage capacity changes (100% basis, in million cbm)
In 2013, our worldwide storage capacity increased by 0.6 million cbm to a total of 30.5 million cbm at year-end. New capacity at existing terminals was commissioned at, among others, Banyan (Singapore), Vlaardingen (Netherlands), Chemiehaven Rotterdam (Netherlands), Terquimsa (Spain) and Tianjin (China). In Algeciras (Spain), a new terminal was commissioned for the storage of oil products. In Gothenburg (Sweden), Vopak acquired additional rock caverns. Furthermore, as part of the alignment of our terminal network with long-term market developments, Vopak divested its 100% equity interest in the terminals Amsterdam Petroleumhaven (Netherlands), Pasir Gudang (Malaysia) and San Antonio (Chile); its 40% equity interest in Xiamen Paktank Company Ltd. (China), and its 50% equity interests in Mejillones (Chile) and Guayaquil (Ecuador). Furthermore, we closed operations at Vopak Terminal South Wilmington (50,900 cbm) in the US.

In 2013, new projects were announced. In the first quarter of 2013, Vopak decided to expand its storage capacity in Zhangjiagang (China) by 46,800 cbm. Moreover, we acquired additional rock caverns (100,000 cbm) in Gothenburg (Sweden), which was commissioned in the second quarter of 2013. Also in the second quarter of 2013, Vopak decided to expand its storage capacity in Vlissingen (Netherlands) by 36,800 cbm for LPG and chemical gases. In the fourth quarter of 2013, Vopak decided to construct Southeast Asia’s first independent import LPG facility at the Banyan terminal (Singapore), with an initial capacity of 80,000 cbm. Furthermore, the seventh phase of expansion was announced in Fujairah (UAE), adding 478,000 cbm of storage capacity for crude oil. Also in the fourth quarter of 2013, Vopak decided to upgrade and expand its terminals in Hamburg (Germany) and Antwerp (Belgium), respectively by 65,000 cbm and 40,000 cbm. The redevelopment project of the former Coryton refinery in the UK into an import and distribution terminal for oil products (Thames Oilport) is experiencing delays and is currently under review. In Jubail (Saudi Arabia), a new facility will be constructed with an initial capacity of approximately 220,000 cbm to serve the expansion of the petrochemical and downstream industries.

Due to a difficult marine construction environment in Hainan (China), the project has experienced an additional construction delay; currently expected to be commissioned in the first half year of 2015. All projects currently under development are expected to add 6.5 million cbm storage capacity in the period up to and including 2016.

A large part of the capacity growth is related to meeting storage demand resulting from positive developments in the oil and natural gas markets and growing imbalances. Vopak’s focus is on growing in selected strategic locations. Vopak’s estimated total market share in global independent tank storage slightly increased from 10.2% in 2012 to 10.5% in 2013. Based on the announced expansions Vopak is well positioned in strategic key locations to further strengthen its leading position.

Developments and studies for growth
At present, we are investigating various expansion opportunities, both at existing terminals and at new locations for Vopak. These opportunities include, among others, possibilities for oil storage terminals in Bahía Las Minas (Panama) and West Africa and LNG-storage possibilities in several locations, including Pengerang (Malaysia).