Vopak reports on HY1 2023 results

Vopak reports strong First Half Year 2023 results and confirms its outlook for FY 2023

Key highlights HY1 2023


  • EBITDA in HY1 2023 of EUR 494 million. FY 2023 outlook confirmed.
  • Repurposing part of capacity into vegetable oil storage in Deer Park terminal, Houston.
  • Completed divestment of Savannah terminal, Colombian chemical terminals classified as held for sale, strategic review of Vopak’s three chemical terminals in the Port of Rotterdam is in progress.


  • Solidifying our leading industrial terminal position in Singapore with additional pipeline connections.
  • Established 50/50 partnership with AltaGas to study a large-scale LPG export facility in West Canada.
  • Strengthening Vopak’s leading position in India through four expansions in LPG and liquid products.
  • Developing LNG infrastructure in the Netherlands to increase gas supply security in Europe.


  • Commissioned new infrastructure in the port of Rotterdam related to waste-based feedstocks.
  • Successfully completed the acquisition of a prime location in the Port of Antwerp for new energies and sustainable feedstocks.

Royal Vopak Chief Executive Officer Dick Richelle, said:

“During the first half year of 2023 the demand for our services was strong, reflected by an occupancy of 91%. EBITDA increased 14% compared with last year, mainly driven by organic growth across most of the divisions. We continued to make good progress on our strategy to improve our financial and sustainability performance, to grow our base in industrial and gas terminals, and to accelerate towards new energies and sustainable feedstocks. Our well diversified portfolio combined with our new simplified organizational structure, positions us well to continue to execute this strategy. We confirm FY 2023 outlook, as we remain focused on long-term value creation through disciplined and balanced capital allocation.”

Financial Highlights for HY1 2023 – excluding exceptional items

  • Revenues increased to EUR 721 million (HY1 2022: EUR 662 million) despite a divestment impact of EUR 25 million and unfavorable currency translation effects of EUR 2 million.
  • Proportional revenues increased to EUR 967 million (HY1 2022: EUR 886 million). During HY1 2023 the oil markets were dominated by volatility, rebalancing of trade flows and supply security concerns which supported overall storage demand. Growth in global industrial production continued to slow down, impacting global chemical production. In Europe, this led to an increased need for chemical imports. A slower than expected recovery related to China’s reopening has resulted in a bearish sentiment in the industry for the second half of 2023. Throughput levels in our industrial terminals remain stable and we foresee limited impact due to our established and well diversified industrial portfolio in China. Gas markets (LNG) normalized in 2023 after the disruption of the Russia Ukraine war. In addition growth projects contribution further supported revenue.
  • Proportional occupancy rate at Q2 2023 was 91% (Q1 2023: 92%). Occupancy in the Europe & Africa division and the Asia & Middle East division remained strong.
    Costs increased by EUR 10 million to EUR 350 million (HY1 2022: EUR 340 million) mainly due to increased energy costs, personnel expenses and higher operating expenses, including the cost of growth projects. The increase was partially offset by a positive divestment impact. Compared to Q1 2023 (EUR 175 million), costs were broadly flat as the increase in personnel expenses was offset by a decrease in energy costs.
  • EBITDA increased by EUR 61 million (14% year-on-year) to EUR 494 million (HY1 2022: EUR 433 million) driven by organic growth across most of the divisions, growth project contribution (EUR 10 million) partially offset by higher costs and divestment impact (EUR 8 million) and negative currency translation effects (EUR 2 million).
    Proportional EBITDA increased to EUR 586 million (HY1 2022: EUR 521 million).
  • Proportional EBITDA margin in HY1 2023 was at 57.4% (HY1 2022: 55.5%) an improvement reflecting good business conditions and our commercial ability to seize and capitalize on the various market opportunities despite the high inflationary and cost environment.
  • EBIT of EUR 332 million (HY1 2022: EUR 257 million), increased by EUR 75 million mainly due to EBITDA performance and lower depreciation compared to HY1 2022 mainly as a result of impairment charges accounted for in HY1 2022.
  • Growth investments in HY1 2023 were EUR 149 million excluding any net cash compensation received (HY1 2022: EUR 240 million). Growth investments in 2022 include Vopak investment in Aegis-Vopak partnership in India. Proportional growth investments in HY1 2023 were EUR 184 million (HY1 2022: EUR 249 million).
  • Operating capex, which includes sustaining and IT capex, in HY1 2023 was EUR 120 million (HY1 2022: EUR 117 million) while proportional operating capex was EUR 138 million (HY1 2022: EUR 126 million) in line with Vopak’s ambition to have a maximum spend of EUR 300 million in FY 2023.
  • Cash flow from operating activities increased by EUR 138 million to EUR 478 million compared to HY1 2022 EUR 340 million. The increase was related mainly to positive business performance (EUR 53 million), working capital movements (EUR 63 million) and derivatives as financial instruments adjustments (EUR 81 million) partially offset by the lower dividend receipts from joint ventures and associates (EUR 59 million) due to one-off dividends received last year from PT2SB and Fujairah joint ventures.
    Proportional operating cash flow in HY1 2023 increased by EUR 68 million (20% year-on-year) to EUR 415 million (HY1 2022 EUR 347 million) driven mainly by improved proportional EBITDA performance and partly offset by a negative currency translation impact of EUR 4 million. Proportional operating cash return in HY1 2023 was 14.6% compared to 11.4% in HY1 2022. Proportional operating cash return in Q2 2023 was at 13.7% compared to Q1 2023 at 15.4% due to seasonal lower operating capex in Q1 2023. Proportional operating cash return from FY 2022 includes lessor accounting. The change in the methodology of calculating proportional operating cash return provides better insight into the cash generation of the business.
  • Net profit attributable to holders of ordinary shares was EUR 207 million (HY1 2022: EUR 128 million).
  • The total net debt : EBITDA ratio is 2.46x at the end of Q2 2023 (Q2 2022: 3.06x) in line with our ambition to keep net debt to EBITDA at the lower end of the range of around 2.5-3.0x. Total net debt includes the senior net debt (EUR 1,960 million) and subordinated debt (EUR 166 million).

Exceptional items in HY1 2023 consist of:

  • A gain of EUR 21 million, net of tax charge of EUR 29 million, was recognized upon completion of the divestment of 100% shareholding in Vopak Terminals Savannah Inc.
  • Organizational restructuring charges incurred for EUR 3 million for changes in management structure in line with Vopak’s strategic goals. Vopak expects to incur organizational restructuring charges in the remainder of the year of approximately EUR 10 million in total.
  • Adjustment of receivable for Vopak Terminal Hamburg divestment (2019) resulted in a charge of EUR 1 million.

These items have no impact on the leverage ratio and covenants level.

Full Report

Source: Vopak

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