Vopak third quarter Group operating profit before depreciation and amortization (EBITDA) -excluding exceptional items- decreased by 5% to EUR 185.6 million (Q3 2012: EUR 196.3 million). Adjusted for adverse currency translation effects (EUR 9.3 million) the decrease was 1%.
Third quarter Group operating profit -excluding exceptional items- decreased by 9% to EUR 131.8 million (Q3 2012: EUR 145.2 million). Adjusted for adverse currency translation effects (EUR 7.2 million) the decrease was 4%.
Year to date Group operating profit -excluding exceptional items- decreased by 4% to EUR 412.1 million (YTD 2012: EUR 427.5 million). Adjusted for adverse currency translation effects (EUR 8.7 million) the decrease was 2%.
Vopak continues to expect to realize an EBITDA within its earlier communicated EBITDA outlook range of between EUR 730-780 million for the full year 2013, whereby, as a result of amongst others continued adverse currency developments, some higher (business development) costs and comparable occupancy rates, the fourth quarter 2013 EBITDA will most likely not exceed the third quarter 2013 EBITDA level.
Projects under construction are expected to add 4.3 million cbm of Storage Capacity in the years up to and including 2015. The total investment for Vopak and partners in expansion projects involves capital expenditure of approximately EUR 1.5 billion, of which Vopak’s total remaining cash spend is expected to be approximately EUR 0.3 billion. The completion of these expansion projects is expected to result in a worldwide Storage Capacity of approximately 34.9 million cbm by the end of 2015.
Eelco Hoekstra, Chairman of Vopak commented: “Following the 11% cumulative average EBITDA growth in the last 10 years, resulting in a reported record 2012 EBITDA -excluding exceptional items- of EUR 768 million, we are facing some challenges to further increase our financial performance in 2013. Besides the modest capacity expansion in 2013, we are experiencing amongst others adverse currency translation effects, higher pension charges and a continued challenging market situation for specific European product-market combinations in Rotterdam (Netherlands) and Estonia. Besides these challenges, other flows and related demand for our storage services in this region however remain stable, while we see an overall healthy demand for storage services in Asia and the Middle East. In the Americas, the positive developments at amongst others the U.S. Gulf Coast were, unfortunately, largely offset by lower results in Los Angeles (U.S.) and Brazil.
In the third quarter of 2013, we realized an EBITDA -excluding exceptional items- of EUR 186 million. This is nearly EUR 11 million lower than the same period in 2012, primarily due to adverse currency translation effects of around EUR 9 million. Although the recent currency developments had an adverse impact on Vopak’s reported earnings, Vopak continues to expect to realize an EBITDA within its earlier communicated EBITDA outlook range of between EUR 730-780 million for the full year 2013.
Vopak will have modest capacity expansions in 2013. In the third quarter of 2013, Vopak has added new LPG storage capacity at Vopak Terminal Tianjin Lingang (China), and divested its 40%-equity interest in Xiamen Paktank Company Ltd. in China, as part of the continuous drive to further align our terminal network with long-term market developments.
Vopak will mark its 400 years of existence in 2016. Based on current projects under construction and potential opportunities for further expansion of Vopak’s network of terminals, it is our ambition to realize an EBITDA -excluding exceptional items- of EUR 1 billion in 2016. In order to achieve this ambition, among other factors, the identification, approval, and successful and timely execution of additional profitable expansion projects, our continued ability to manage our cost base, and a continuation of the operational efficiency at our existing terminals are required. While we continue to have a range of potential projects under consideration, we remain committed to the capital disciplined execution of our growth strategy.”