November 16, 2020 [Argus Media] – Netherlands-based storage and terminal operator Vopak said its occupancy rate continued to rise during the third quarter, supported by strong demand for oil storage.

The firm’s proportional occupancy rate increased to 92pc in July-September from 90pc in the previous three months and 83pc a year earlier. Vopak has benefited from rising demand for oil storage since the Covid-19 pandemic hit consumption. It continued to see support from the effect of a contango structure in oil markets but said this slowed in July-September.

Vopak reported a third-quarter profit of €79.5mn ($94.2), down from €116.4mn in the second quarter and €280.6mn a year earlier. But the decline was largely related to one-off items, with both prior periods boosted by divestment gains.

Stripping out exceptional items — which include a transaction cost related to the acquisition of three US Gulf coast marine terminals from US firm Dow — this year’s third-quarter profit was €82.9mn, compared with €83.4mn in the previous three months and €91.1mn a year earlier.

Vopak said it plans to invest €500mn-600mn in its global terminal portfolio this year, including the Dow transaction. It previously planned to spend up to €500mn this year. But investment next year will fall.

“Vopak has the ambition to allocate some €300mn-350mn to growth investments in 2021 through existing sanctioned projects, new business development and pre-FID [final investment decision] feasibility studies in new energies including hydrogen,” the firm said.

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