April 24, 2014 [WSJ] - Koninklijke Vopak N.V. (VPK.AE) Wednesday reported a 17% fall in first-quarter net profit, with earnings before interest, taxes, depreciation and amortization down 6%, and said it expects a 5% to 10% fall in 2014 Ebitda.
The independent tank storage provider, specializing in the storage and handling of liquid chemicals, gases and oil products, said it will provide an update on its longer-term Ebitda goal in the second half of 2014, after a review of current terminals and their potential for adding long-term value to the firm’s global terminal portfolio.
“Our net profit development in the first quarter of 2014 is negatively affected by lower revenues, decreased results from participations and increased depreciation resulting from among others our recent expansion projects,” Vopak Chairman Eelco Hoekstra said. “Overall, we remain confident that our terminal network provides a solid foundation for future performance.”
Net profit was 68.2 million euros ($94 million), compared with EUR82.2 million. Ebitda fell to EUR179.6 million from EUR191.2 million a year earlier while revenue was 1% lower at EUR318.0 million.
The firm will intensify a focus on increasing efficiencies while improving service and safety, said Vopak, which was created by the merger of Van Ommeren and Pakhoed in 1999.
Projects under development will add 7.5 million cubic meters of storage capacity in the years up to and including 2017, Vopak said.
The total investment for Vopak and its partners in expansion projects is EUR1.7 billion, of which Vopak’s total remaining cash spend is EUR0.4 billion, it said.
