February 26, 2016 [Royal Vopak] - Vopak EBITDA increased by 6% to EUR 812 million (2014: EUR 763 million), EBIT increased by 6% to EUR 556 million (2014: EUR 524 million).
Highlights for the year 2015 -excluding exceptional items-:
- Net profit attributable to holders of ordinary shares increased by 11% to EUR 325 million (2014: EUR 294 million) and earnings per ordinary share (EPS) increased by 10% to EUR 2.55 (2014: EUR 2.31).
- Cash flows from operating activities (gross) increased by 10% to EUR 867 million (2014: 787 million).
- Vopak’s worldwide storage capacity increased on a 100% basis by 0.5 million cbm to 34.3 million cbm during 2015.
A dividend of EUR 1.00 (2014: EUR 0.90) per ordinary share, payable in cash, will be proposed to the Annual General Meeting on 20 April 2016.
- Total exceptional items before finance costs and taxation amounts to a loss of EUR 6 million (2014: loss of EUR 55 million), which comprises several gains and losses.
- Total exceptional items after taxation amounts to a loss of EUR 43 million (2014: loss of EUR 47 million). The exceptional tax loss mainly related to the tax charge on the divestment of the US terminals.
- Looking ahead, we expect 2016 occupancy rates of our global terminal network to exceed 90%, supported by our diversified portfolio both geographically and in different product groups (oil, chemicals and gas), healthy contract coverage and strong supply chain positions.
This provides a solid basis for 2016 whilst taking into account the reduced contribution of divested terminals.
Eelco Hoekstra, Chairman of the Executive Board and CEO of Royal Vopak:
“We achieved our financial targets for 2015. We are confident about the future earnings potential of the company and propose to increase the dividend per ordinary share with 11%.
Our personal safety performance leveled off in 2015 and did not meet our expectation. Most tragically, we suffered one fatal accident at our joint venture terminal in Japan. We continued our efforts to improve the effectiveness of safety related controls. Every single incident is one too many and we must continue further strengthening the safety culture at our terminals, focused on zero incidents.
We are pleased with the good progress made with the optimization of our terminal portfolio in 2015.
Through the divestment program, together with the commissioning of new terminals and capacity expansions at existing terminals, we have further strengthened our global network and improved our competitive service offering.
We observed a gradual pickup in advanced economies and a slowdown in emerging markets and developing countries. In North America, the underlying drivers for acceleration in consumption and investment remained intact. Further, the economic recovery in Europe has developed positively, with a robust improvement in domestic demand. However, this year was dominated by China’s uncertain growth perspective, increased economic sensitivity to lower commodity prices and the heightened geopolitical tensions in certain regions.
Despite these challenging market developments, we were able to deliver robust financial results supported by the positive FX effect. Global imbalances, long-term contracts and effective supply chain positioning continue to be the main drivers behind the strong demand for our infrastructure services. The lower oil price environment contributed to the higher occupancy rate in the Netherlands and EMEA and increased market interest for our newly commissioned oil terminals in Asia. Overall demand for chemicals remains healthy, supported by increase in GDP, population growth and rising wealth levels.
In 2016, we will continue with the execution of our strategic priorities, which will strengthen Vopak’s competitive position and will support the company to adapt to changing circumstances in order to seize opportunities and to continue our focus on sustainable long-term value creation.”
Storage capacity developments
During 2015, our worldwide capacity has increased by 0.5 million cbm, to a total of 34.3 million cbm as per year-end 2015.
During 2015, Vopak commissioned 2,244,600 cbm of new capacity. The most notable commissions are Pengerang Independent Terminals phase 1C in Malaysia (413,000 cbm), our joint venture oil terminal in Hainan in China (1,350,000 cbm) and the first phase of our associate industrial chemical terminal in Jubail in Saudi Arabia (155,000 cbm). The total capacity of the divested terminals amounted to 1,736,800 cbm in 2015. The net change of the commissioned capacity together with the divested capacity amounts to 507,800 cbm.
All projects currently under development will add, once completed, 4.2 million cbm of storage capacity to our global network (on a 100% basis) in the period up to and including 2019.
Progress has been made with regard to the announced divestment program of around 15 primarily smaller terminals. During 2015, the Group divested nine terminals and two plots of land. This resulted in a total cash inflow from divestments of EUR 297.6 million and an exceptional gain of EUR 79.5 million before tax.
On 19 December 2015, Vopak reached agreement on the sale of all of its UK assets. Macquarie Capital will acquire 100% of the shares of the three wholly-owned terminals: Vopak Terminal London, Vopak Terminal Teesside and Vopak Terminal Windmill. Greenergy will acquire Vopak Holding UK, comprising Vopak’s 33.3% investment in the joint venture Thames Oilport (former Coryton refinery). This divestment is not part of the earlier mentioned divestment program. The assets and liabilities of the UK assets have been classified as held for sale at year-end 2015.