February 25, 2026 [Reuters]- Tank storage group Vopak said on Wednesday it would return 1.7 billion euros ($2.0 billion) to shareholders over the next five years, after its profit surged 61% last year on the back of strong cash flow.

Its shares jumped around 10% in early Amsterdam trading following the earnings release.

The Dutch company, which provides storage and handling services to the energy and manufacturing end markets, said the distribution would be made through dividends and share repurchases through 2030.

The plan consists of annual increases of at least 5% in the per-share dividend and a multi-year share buyback programme of up to 500 million euros, Vopak said.

Based on last year’s 604 million euro profit and record operating free cash flow of 823 million euros, the Rotterdam-based company will propose a 12.5% hike in its annual dividend to 1.80 euros per share.

It also raised its long-term operating cash return target to between 13% and 17%, having guided for more than 13% previously.

Finance chief Michiel Gilsing told Reuters the improved cash generation stemmed from replacing ageing infrastructure with modern storage facilities that require lower maintenance spending.

Vopak aims to invest 4 billion euros in new infrastructure by 2030, half of which has already been committed in 2025.

CHEMICAL CUSTOMERS PRESSURED BY TARIFFS

Vopak’s chemical storage business has come under pressure as customer demand softened due to global trade tensions, Gilsing said.

“All these tariffs … obviously (don’t) help the economy growing … and that’s where you also see some of our chemical customers really have challenges,” he said.

However, he added the impact of Vopak’s business should be limited, as long-term contracts mitigate the damage.

The U.S. imposed a new tariff from Tuesday of 10% on all goods not covered by exemptions, the rate first announced by President Donald Trump on Friday rather than the 15% he promised a day later.