Vopak reports on HY1 2020 financial results
29 Luglio 2020 - 07:00AM
Vopak reports on HY1 2020 financial results
Q2 2020 |
Q1 2020 |
Q2 2019 |
In EUR millions |
HY1 2020 |
HY1 2019 |
HY1 '20-'19 |
292.4 |
296.9 |
316.8 |
Revenues |
589.3 |
641.4 |
-8% |
|
|
|
|
|
|
|
|
|
|
Results -excluding
exceptional items- |
|
|
|
202.4 |
200.2 |
208.0 |
Group operating profit before depreciation and amortization
(EBITDA) |
402.6 |
422.6 |
-5% |
129.8 |
127.0 |
137.4 |
Group operating profit (EBIT) |
256.8 |
274.4 |
-6% |
83.4 |
82.7 |
89.6 |
Net profit attributable to holders of ordinary shares |
166.1 |
172.9 |
-4% |
0.66 |
0.65 |
0.70 |
Earnings per ordinary share (in EUR) |
1.31 |
1.35 |
-3% |
|
|
|
|
|
|
|
|
|
|
Results -including
exceptional items- |
|
|
|
235.4 |
198.5 |
224.4 |
Group operating profit before depreciation and amortization
(EBITDA) |
433.9 |
440.1 |
-1% |
162.8 |
125.3 |
153.8 |
Group operating profit (EBIT) |
288.1 |
291.9 |
-1% |
116.4 |
81.0 |
106.0 |
Net profit attributable to holders of ordinary shares |
197.4 |
190.4 |
4% |
0.91 |
0.64 |
0.83 |
Earnings per ordinary share (in EUR) |
1.55 |
1.49 |
4% |
|
|
|
|
|
|
|
264.7 |
142.7 |
192.9 |
Cash flows from operating activities (gross) |
407.4 |
351.7 |
|
-171.4 |
29.8 |
-151.8 |
Cash flows from investing activities (including derivatives) |
-141.6 |
-331.8 |
|
|
|
|
|
|
|
|
|
|
|
Additional performance measures |
|
|
|
34.4 |
34.3 |
36.9 |
Storage capacity end of period (in million cbm) |
34.4 |
36.9 |
|
88% |
84% |
84% |
Occupancy rate subsidiaries |
86% |
85% |
1pp |
90% |
86% |
84% |
Proportional occupancy rate |
88% |
84% |
4pp |
245.6 |
241.0 |
239.3 |
Proportional EBITDA -excluding exceptional items- |
486.6 |
479.4 |
2% |
|
|
|
|
|
|
|
12.1% |
11.5% |
12.5% |
Return on capital employed (ROCE) |
11.8% |
12.6% |
|
4,105.2 |
4,252.0 |
4,246.5 |
Average capital employed |
4,190.1 |
4,246.5 |
|
2,450.4 |
2,321.9 |
2,618.4 |
Net interest-bearing debt |
2,450.4 |
2,618.4 |
|
2.81 |
2.65 |
2.99 |
Senior net debt : EBITDA (for debt covenant) |
2.81 |
2.99 |
|
Highlights for HY1 2020 -excluding exceptional
items-:
- EBITDA of EUR 403 million (HY1
2019: EUR 423 million pre-divestments). Adjusted for EUR 3 million
negative currency translation effects and the impact of the
divestments of the terminals in Algeciras, Amsterdam and Hamburg
(EUR 35 million decrease), EBITDA increased by EUR 18 million (4%),
reflecting resilient business performance including the effect of
contango oil markets, IMO 2020 converted capacity and reduced
chemicals throughput.
- Occupancy rate subsidiaries of
86% (HY1 2019: 85%) reflects support from contango developments in
the oil markets in Q2, whereas storage demand in other market
segments remained robust. Planned inspection and maintenance
out-of-service capacity at subsidiaries was 1.4 million cbm in
Q2 2020.
- Proportional occupancy rate of
88% (HY1 2019: 84%) included good performance of joint venture oil
terminals and continued strong performance of our joint venture gas
and industrial terminals.
- In response to COVID-19
conditions, cost control measures were implemented to manage and
reduce Vopak's cost base; the cost level for HY1 2020 amounted to
EUR 295 million and as a result we now aim to be at some EUR 600
million for the year.
- EBIT of EUR 257 million (HY1
2019: EUR 274 million pre-divestments).
- Return on capital employed (ROCE)
of 11.8% (HY1 2019: 12.6%).
- Net profit attributable to
holders of ordinary shares of EUR 166 million (HY1 2019: EUR 173
million) resulting in earnings per ordinary share (EPS) of EUR 1.31
(HY1 2019: EUR 1.35).
- Vopak’s balance sheet is robust
with a senior net debt to EBITDA ratio of 2.81 at the end of HY1
2020. The balance sheet flexibility was further strengthened with
the successful completion of the USD 350 million and EUR 150
million US Private Placement Notes Program in July 2020.
- Share buyback program to return
EUR 100 million to shareholders is progressing with 55% completed
at the end of HY1 2020.
- First half year portfolio
developments were the delivery of 275,000 cbm of new capacity from
growth projects in Malaysia, Panama and Vietnam and the completion
of the divestment of the terminal in Algeciras, Spain.
Impact of COVID-19
pandemic:
The pandemic spread of COVID-19 (Coronavirus) has a significant
impact on all people and organizations around the world. Our main
focus is on the health of the people working for our
company in all locations and to limit the spread of the
Coronavirus, to manage the impact on our business and to assess the
impact on the economy and society. Therefore we have put global and
local measures into place to protect our employees, their families
and our operations based on information provided by the World
Health Organization, national and local health authorities. To
date, we have observed a limited impact on our operations. All our
66 terminals are operational and there have been no significant
disruptions to business continuity.
Vopak’s strategy is robust and unchanged. An effective control
and governance structure to respond to the impact of the global
pandemic, with continued decision-making to support business
execution and well-being of people, has been put in place.
Operational and financial performance, cash flows and our financial
position have not been significantly affected. Our financial
results reflect our resilient business performance. Timing of some
growth projects execution is affected by generic local lockdown
measures in various countries.
Our focus in these circumstances is on the short-term delivery
and protection of long-term value. Vopak plays an important role
within society by storing vital products with care. We are doing
our utmost during the COVID-19 pandemic to continue to fulfill this
role in all our locations around the world.
Although the pandemic brings a lot of uncertainty and the
estimates remain subject to future events, we expect to continue to
manage our performance in line with our original business plan and
unchanged strategy.
Exceptional items HY1 2020:
- On 31 January 2020, Vopak
completed the earlier announced divestment of its 100% shareholding
in the terminal in Algeciras, Spain, generating a cash inflow of
EUR 135 million. The recognized exceptional loss before taxation
was EUR 1.7 million. This completed the divestment program of the
terminals in Algeciras, Amsterdam and Hamburg with a total
exceptional gain of EUR 200 million recognized in the periods 2019
and Q1 2020.
- In Q2 2020, Vopak recognized a
EUR 33 million exceptional gain for the remaining consideration
relating to the December 2019 divestment of its 49% equity share in
the joint venture Vopak SDIC Yangpu Terminal in Hainan, China. Of
this amount, EUR 16.3 million is expected to be received in the
second half of 2020.
Subsequent events:
- On 22 July 2020, Vopak announced
to have signed agreements for a new debt issuance of over USD 500
million equivalent in the US Private Placement (USPP) market
consisting of senior tranches with a total value of USD 150 million
and EUR 150 million and subordinated tranches with a total value of
USD 200 million.
- In July 2020, Vopak Terminals
Singapore completed its refinancing by entering into a new
financing of SGD 300 million (approximately EUR 190 million),
consisting of a term loan and a revolving credit facility.
Looking ahead:
- We aim to grow EBITDA over time
with new contributions from growth projects, further cost and
revenue management to replace the EBITDA from divested terminals,
subject to general market conditions and currency exchange
movements.
- We will continue to invest in
growth of our global terminal portfolio with growth investment for
2020 that could amount up to EUR 500 million.
- Cost management continues in 2020
to compensate at least for annual inflation and operating expenses
will be further managed this year with the aim to be at some EUR
600 million in 2020.
- We are prepared to respond to
different economic scenarios focused on revenues, costs and cash
flows to deliver performance and protect long-term value.
Royal Vopak Chief Executive Officer Eelco Hoekstra
comments:
- Prudent COVID-19 response
- all 66 terminals operational
- Good financial
performance and improved occupancy rates
- Continue to invest in
2020 and 2021 with confidence
“In the first half of 2020, we delivered good financial
performance in a more volatile business
environment.
We captured opportunities in our oil storage portfolio,
resulting in improved occupancy rates. At the same time, we
experienced reduced throughput for chemicals in particular in
Houston and Singapore. We initiated a further response in cost
management to protect earnings. Relative to our original plan, we
missed some contributions due to delays in growth projects and out
of service capacity as construction work was restricted in the
second quarter. The value of these growth projects are not
affected.
I am proud of all people working for Vopak and appreciate their
extraordinary efforts and commitment to safely serve our
customers and society by storing vital products with care during
the COVID-19 pandemic. We remain focused on ensuring the health,
safety and well-being of our employees and to keep our company
performing well.
Vopak’s strategy remains unchanged and has proven to be robust.
The delivery of our strategy has progressed well in 2020 and we
continue to invest in 2020 and 2021 with confidence. Complementary
to our investments in growth, service and IT capex, we continue
executing our share buyback program to increase distribution to
shareholders.
To meet new customer demand and support our portfolio
transformation we have taken new capacity into operations in
Malaysia, Panama and Vietnam and completed the divestment program
of some of our European assets. This year, we announced the
construction of a new chemical gases terminal in the US and
capacity expansion for an industrial terminal in China, both fully
rented out under long-term contracts with reputable customers. We
are further upgrading our chemical terminals in the port of
Rotterdam and Antwerp to continuously improve our service
capabilities.
Good progress has also been made with the development of our LNG
and industrial terminal portfolio.
Our digital transformation is progressing well. The roll-out of
our new cloud-based system for our terminals has continued in an
efficient virtual manner.
We remain focused on short-term delivery and protecting
long-term value by executing our strategy. Vopak plays an important
role within society by storing vital products with care. We are
proud to fulfill this role and are keen to grasp opportunities to
deliver on our strategy in the current dynamic market
circumstances.”
Link to video of CEO and CFO commenting on Vopak's HY1 2020
results
The analysts’ presentation will be given via an on-demand audio
webcast on Vopak’s corporate website www.vopak.com, starting at
9:00 am CEST on 29 July 2020.
This press release contains inside information as meant in
clause 7 of the Market Abuse Regulation.
For more information please
contact:Vopak Press: Liesbeth Lans -
Manager External Communication,Telephone: +31 (0)10 400 2777 |
e-mail: global.communication@vopak.comVopak Analysts and
Investors: Laurens de Graaf - Head of Investor
Relations, Telephone: +31 (0)10 400 2776 | e-mail:
investor.relations@vopak.com
About Royal VopakRoyal Vopak is the world’s
leading independent tank storage company. We store vital products
with care. With over 400 years of history and a focus on
sustainability, we ensure safe, clean and efficient storage and
handling of bulk liquid products and gases for our customers. By
doing so, we enable the delivery of products that are vital to our
economy and daily lives, ranging from chemicals, oils, gases and
LNG to biofuels and vegoils. We are determined to develop key
infrastructure solutions for the world’s changing energy systems,
while simultaneously investing in digitalization and innovation.
Vopak is listed on Euronext Amsterdam and is headquartered in
Rotterdam, the Netherlands. Including our joint ventures and
associates, we employ an international workforce of over 5,500
people. As of 29 July 2020, Vopak operates a global network of 66
terminals in 23 countries located at strategic locations along
major trade routes, with a combined storage capacity of 34.4
million cbm.
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