Vopak reports robust growth in Q1 2024 results
Photo courtesy of Royal Vopak

Vopak reports robust growth in Q1 2024 results

Royal Vopak, a leading global provider of storage and infrastructure solutions, reported a strong performance for the first quarter of 2024, announcing increased financial forecasts for the full year. The company’s net profit rose to EUR106 million (USD113.2 million), a 3% increase from the previous year, driven by robust storage demand across various geographies and sectors.

In Q1 2024, Vopak’s proportional EBITDA, excluding exceptional items, reached EUR298 million (USD318.2 million), marking a 9% improvement year-on-year, adjusting for a EUR21 million (USD22.4 million) impact from divestments. This financial growth is supported by strategic expansions and operational enhancements across Vopak’s global network.

EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, is a financial metric used to evaluate a company’s operating performance.

Significant developments during the quarter included the commissioning of repurposed infrastructure in Singapore for low-carbon transportation fuels and continued progress on similar projects in Alemoa, Brazil, and Vlaardingen, the Netherlands. Vopak’s leadership highlighted these initiatives as pivotal steps toward integrating new energies and sustainable feedstocks into their operations.

Vopak’s CEO, Dick Richelle, emphasised the company’s ongoing commitment to its financial and sustainability performance, stating, “In the first quarter of 2024, we continued to deliver on our strategy to improve our financial and sustainability performance, grow our business in industrial and gas terminals, and accelerate towards new energies and sustainable feedstocks.”

He added: “The demand for our infrastructure services remained robust, resulting in an increased proportional occupancy of 93%. Oil and gas markets were strong, driven by a higher demand for energy, and rerouting of supply chains. Chemical markets remain under pressure, having a limited impact on our chemical distribution terminals so far, while industrial terminals maintained solid results, backed by long-term take-or-pay contracts.”

The company also reported progress on a new terminal acquisition in Mangalore, India, and the development of a greenfield LPG-export terminal project in Western Canada, underscoring its strategic expansion in both traditional and renewable energy sectors.

Looking ahead, Vopak has revised its Fiscal Year 2024 outlook upwards, with updated EBITDA forecasts reflecting continued strong performance and strategic capital deployment towards sustainable and high-growth opportunities. The company remains focused on maintaining a robust balance sheet, as evidenced by its successful share buyback program and positive cash flow movements.

Vopak’s strategic investments and operational adjustments align with its long-term objectives to support the global energy transition, showcasing its adaptability and forward-thinking approach in the evolving energy landscape.