Vopak's Dow Acquisition Raises 2020 Spending Guidance
11.09.2020 By Greta Talmaci - NEWS

November 09, 2020 [Reuters] – Dutch oil and chemical storage company Vopak VOPA.AS raised its capital expenditure forecast for 2020 on Friday following the September acquisition of three industrial terminals from Dow DOW.N on the U.S. Gulf Coast.

 

The group, which operates tank terminals around the world, now expects its capital expenditure to be in the range of 500 million to 600 million euros ($591 million-$709 million).

In July, Vopak raised its investment forecast to “up to 500 million euros” from between 300 to 500 million euros.

“In 2020 we are investing much more than our normal pattern,” Gerard Paulides, the company’s chief financial officer, told Reuters.

He added expenditure in 2021 would return to more normal levels of between 300 million and 350 million euros.

Vopak, which generates around 35-40% of its revenues from oil terminals, has benefited from soaring demand for oil storage as buyers struggle to find space for surplus crude during a global economic slump triggered by the COVID-19 pandemic.

The Rotterdam-Based company’s occupancy rate at the end of the quarter was 90%, up from 84% a year ago, with Paulides noting more oil storage since March, particularly in the group’s hubs.

This was partly offset by delays in construction of new projects, with Vopak currently finalising the construction of new capacity in South-Africa. The firm should be able to bring that capacity into operation during the current quarter, Paulides said.

Vopak reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of 200.1 million euros in the third quarter, slightly below expectations according to KBC Securities.

————-

Click Here to Access Today a 6,000 Tank Terminal Database With a Pro Trial
6,000 terminals as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

UAE Invests Billions in AI to Diversify Economy Beyond Oil
11.13.2024 - NEWS
November 13, 2024 [Oil Price]- The United Arab Emirates’ state-owned energy giant Abu Dhabi Nat... Read More
Gulf Energy Transition: Assessing Saudi and Emirati Goals
11.13.2024 - NEWS
November 13, 2024 [The Washington Institute]- On October 29, during Saudi Arabia’s annual Futur... Read More
How will The Energy Sector Fare Under Donald Trump?
11.13.2024 - NEWS
November 13, 2024 [Investing Daily]- The energy sector experienced a notable boost following Dona... Read More
PNOC, Pertamina Partner on LNG Infrastructure, Supply Chain
11.13.2024 - NEWS
November 13, 2024 [Manila Bulletin]- State-run Philippine National Oil Company (PNOC) has signed ... Read More