Vopak profits soar to $263 million

Middle East earnings buoy Vopak's strong half-year

Vopak Horizon Fujairah is a joint venture between ENOC and Royal Vopak and and Kuwait's Independent Petroleum Group.
Vopak Horizon Fujairah is a joint venture between ENOC and Royal Vopak and and Kuwait's Independent Petroleum Group.

Vopak, the world’s largest conditioned storage facilities provider, has announced a bumper profits year, up 17.5% to US$263 million.

The company’s strong performance was helped by solid figures from its Oil Europe, Middle East & Africa unit (OEMEA), which saw revenues rise by 5% to $190 million, driven by robust demand for tank storage of oil products and capacity increases.

The occupancy rate remained stable at 95%. Joint ventures, including Vopak Horizon Fujairah, contributed significantly to this increase. “In the first half of 2009 we vigorously kept pursuing our strategic goals. Our drive remains to realise continuous improvements in operational efficiency, quality and growth,” said John Paul Broeders, chairman of the executive board of Royal Vopak.

“We will continue to grow capacity in key locations around the world. Vopak’s total global terminal network offers close to 28 million cubic metres storage capacity, following an increase of more than 0.8 million cubic metres in six month’s time,” he added.

The company offers transhipment and storage provision for liquid or gaseous chemicals, oil products, petrochemicals, biofuels, and Liquefied Natural Gas (LNG)from 80 terminals in 32 countries. Robust demand for storage services, especially in the oil business, led to a significant rise in our half-year operating profit.

The chairman conceded that a difficult chemicals market had stabilised, but warned it was too early to draw positive conclusions as to the structural recovery of the chemicals market. “Given our encouraging results so far and Vopak’s growth prospects for the rest of the year we have raised our 2009 outlook."

Key performance digest:

  • Group operating profit rises 17.5% to $263 million
  • Worldwide storage capacity has expanded further during the first half year by 0.8 million cubic metres (cbm) to 27.9 million cubic metres
  • Projects under construction will add 2.8 million cbm of storage capacity in the period to 2011.
  • The total investment for Vopak and partners in these projects will involve capital expenditure of some $2.28 billion

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Oil & Gas Middle East - September 2020

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