Vopak to Divest from 15 Terminals

Posted by Michelle Howard
Wednesday, July 02, 2014
Photo courtesy of Vopak

Dutch oil and chemicals storage company Vopak said on Wednesday it would divest from 15 primarily smaller terminals and planned to cut capital expenditure by about $136 million (100 million euros).

The world's largest independent storage tank operator has suffered from the harsh business climate in Europe, where high crude prices and sinking diesel profits have prompted refiners to cut operating rates by nearly a quarter this summer.

"Since 2013, the tank storage market has been adversely impacted by a substantial incremental supply of storage capacity as well as by legislative and geopolitical developments," the company said in a statement.

ING analyst Quirijn Mulder said in a note to clients that the realignment of Vopak's portfolio did not come as a surprise as certain terminals have not performed well for many years.

The company did not identify the location of the 15 terminals but said they currently contribute about 4 percent to the its overall EBITDA.

Vopak offers oil, chemical and biofuel storage in major ports including Rotterdam, Fujairah, Tallinn and Singapore, and had scheduled capacity expansion in several sites, including in Singapore, China, and the Netherlands in the second quarter.

"The competitive landscape has changed, especially in Europe and, we believe, in Latin America. The company has not said so yet, but the effect in FY14 is quite dramatic due to further pressure on prices and the difficult environment," Mulder said.

The company warned in April that 2014 EBITDA was expected to be 5-10 percent lower than 2013.

Vopak said on Wednesday that it expected adjusted EBITDA to exceed the 2012 level of 768 million euros at the latest in 2016.

The company also said it aimed to reduce its capital expenditure programme by 100 million euros to about 700 million until 2016, and cut its cost base by about 30 million euros from 2016.

Chief Executive Eelco Hoekstra told Reuters last month that the company was considering building a liquefied natural gas terminal in Southeast Asia.

Vopak shares, which have lost about 22 percent of their value over the past year, were up 2.4 percent marginally at 36.32 euros at 1322 GMT on the Amsterdam Stock Exchange.

($1 = 0.7345 Euros)

(Reporting by Anthony Deutsch in Amsterdam and Roshni Menon in Bangalore; Editing by Jason Neely and Saumyadeb Chakrabarty)

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

U.S. Navy Contracts 12 Rapid Response Skimmers

Kvichak Marine won a US Navy contract for 12 30-ft.Rapid Response Skimmers (RRS) for delivery over the next 18 months, with options for up to 30 additional skimmers to be delivered through 2019.

DP World Receives 1st Scheduled Vessel at New Terminal

DP World has yesterday welcomed the first scheduled vessel to call at its new Container Terminal 3 in Jebel Ali, Dubai, as it gears up to serve customers at the state-of-the-art facility.

Kalmar 5th Generation Gloria Reachstackers Enter US

Kalmar, part of Cargotec, is launching its highly acclaimed range of reachstackers, called Gloria into the Americas. The eagerly awaited launch follows the successful

Tanker Trends

Fredriksen eyes Takeover of Flex LNG

Shipping tycoon John Fredriksen is aiming to take control of Oslo-listed Flex LNG following his purchase of 12.7 million shares that brought his stake in the firm to 43.

A History of U.S. Oil Export Controls

On Oct. 20, 1973, King Faisal of Saudi Arabia imposed a total embargo on oil shipments to the United States among other countries in response to their support for Israel during the Arab-Israeli war.

US Warns of Sanctions on Buyers of Islamic State Oil

The Obama administration on Thursday threatened to slap sanctions on anyone buying oil from Islamic State militants in an effort to disrupt what it said was a $1-million-a-day funding source.

Ports

Singapore Bunker Meter Mandate Targets 'Frothy Fuel'

Singapore, the world's biggest bunkering port, plans to end the so-called "cappucino effect" in ship fuelling through new meters designed to stop suppliers from short-changing customers,

DP World Receives 1st Scheduled Vessel at New Terminal

DP World has yesterday welcomed the first scheduled vessel to call at its new Container Terminal 3 in Jebel Ali, Dubai, as it gears up to serve customers at the state-of-the-art facility.

Kalmar 5th Generation Gloria Reachstackers Enter US

Kalmar, part of Cargotec, is launching its highly acclaimed range of reachstackers, called Gloria into the Americas. The eagerly awaited launch follows the successful

Finance

UASC Targets Expansion to Beat Container Market Blues

UASC expects to reach volume of 2.35 mln TEU in 2014 Global carriers still struggling with weak conditions United Arab Shipping Company (UASC) is on a major expansion drive,

Ecoships Claims 15% Ship Efficiency Gain

Ecoships introduced a customized version of the Six Sigma DMAIC approach to process and performance evaluation in order to optimize the energy-efficiency of the vessels under its management.

Singapore Bunker Meter Mandate Targets 'Frothy Fuel'

Singapore, the world's biggest bunkering port, plans to end the so-called "cappucino effect" in ship fuelling through new meters designed to stop suppliers from short-changing customers,

Energy

Oversupply, Ebola Fears Drive Oil Below $86

* Middle East supply remains strong * Equities fall on confirmed case of Ebola in New York * Economists see gloomy 2015 for China, euro zone - Reuters

New Oil Field Found in British North Sea

GDF SUEZ E&P UK Ltd and BP today announced a new exploration discovery in the UK Central North Sea. The discovery, which spans GDF SUEZ operated block 30/1f

Foster Wheeler & MDM Engineering Merged

Foster Wheeler AG announced today that an indirect wholly owned subsidiary of the Company has completed the acquisition of MDM Engineering Group Limited (“MDM”)

News

Rederij Groen Takes Delivery of 7-Waves

Rederij Groen’s entire SRSV fleet built by Damen Maaskant Shipyards Stellendam. Dutch offshore services company Rederij Groen has taken delivery of the 7-Waves,

UASC Targets Expansion to Beat Container Market Blues

UASC expects to reach volume of 2.35 mln TEU in 2014 Global carriers still struggling with weak conditions United Arab Shipping Company (UASC) is on a major expansion drive,

Ecoships Claims 15% Ship Efficiency Gain

Ecoships introduced a customized version of the Six Sigma DMAIC approach to process and performance evaluation in order to optimize the energy-efficiency of the vessels under its management.

 
 
Maritime Security Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3341 sec (3 req/sec)