November 11, 2014 [Reuters] - Vopak on Tuesday reported a third-quarter fall in profits due to costs related to a restructuring programme begun in July, missing analysts' forecasts for the third quarter.
Vopak earned revenues of 337.6 million euros ($419.42 million) in the third quarter, slightly behind analysts’ revenue forecasts of 340 million euros. The world’s largest independent storage tank operator raised its outlook, saying it expects operating profit excluding exceptional items for the full year to exceed 740 million euros, in line with analysts’ forecasts.
Third-quarter operating profit was down 9 percent on the same period last year at 169.3 million due to 29 million euros in impairment charges and 4 million euros in restructuring costs. Analysts had estimated operating profit to come in at 187 million euros.
Excluding restructuring costs, operating profit was up 9 percent at 201.9 million euros.
“Our business climate remains challenging and competitive,” said Vopak Chief Executive Eelco Hoekstra. “Geopolitical uncertainties continue to make it difficult to predict economic developments and the impact on our future results.”
In June, the company said it would divest from 15 primarily smaller terminals and planned to cut capital expenditure by about 100 million euros.
Vopak has suffered from the harsh business climate in Europe, where high crude prices and sinking profits from the sale of diesel have prompted refiners to cut operating rates by nearly a quarter this summer.
