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

Tanker Trends

New Standard for LNG Cargo Containment Systems

Wilhelmsen Technical Solutions (WTS) said it has successfully completing the gas trial for the first LNG carrier built to a Boil Off Rate (BOR) of 0.08% per day.

Nordic American Offshore Declares Dividend

Nordic American Offshore Ltd. today announced that its board of directors has declared a dividend of $0.45 per common share for the third quarter 2014. This is the same as for the second quarter 2014.

GAO: Ending Crude Export Ban Could Ease 'Price at the Pump'

As the energy profile of the U.S. continues to improve and evolve daily, fresh debate in favor of exporting oil and gas products -- which would have a significant impact on the U.

Ports

Cargill: 50,000T of Sugar Affected by Brazil Fire

Approximately 50,000 tonnes of sugar were stored in a warehouse affected by fire in the Teag terminal in Brazil on Monday, Cargill Inc said in a statement. The terminal,

GAO: Ending Crude Export Ban Could Ease 'Price at the Pump'

As the energy profile of the U.S. continues to improve and evolve daily, fresh debate in favor of exporting oil and gas products -- which would have a significant impact on the U.

'New Tango' Brings More Post-Panamax Ships to Charleston

New service expands Port of Charleston's capacity to serve North-South trade The SC Ports Authority today received the first ship call of a new consolidated

Finance

Nordic American Offshore Declares Dividend

Nordic American Offshore Ltd. today announced that its board of directors has declared a dividend of $0.45 per common share for the third quarter 2014. This is the same as for the second quarter 2014.

Bollore Africa Logistics Sees Profit Plunge in H1

First half 2014 profit at shipping company Bollore Africa Logistics plunged to 5.89 billion CFA francs ($11.48 million) from 9.45 billion CFA francs in the same period last year,

Maduro Says Venezuela's 2015 Budget to Put Oil at $60

Venezuela's 2015 budget will be based on a target oil price of $60 dollars per barrel, President Nicolas Maduro said on Friday night, but he repeated expectations that prices will recover.

Energy

Corvus Gains Support from WINN Initiative

Corvus Energy announced today the award of $1.3 million in repayable assistance from the Western Innovation (WINN) Initiative for its project to further develop the Corvus Energy Storage System.

Ocean Rig, Petrobras Agree to $1.1b Drill Ships Lease

Cyprus-based Ocean Rig UDW Inc said on Monday that it signed a $1.1 billion three-year contract with Brazil's state-run oil company, Petroleo Brasileiro SA, to

GAO: Ending Crude Export Ban Could Ease 'Price at the Pump'

As the energy profile of the U.S. continues to improve and evolve daily, fresh debate in favor of exporting oil and gas products -- which would have a significant impact on the U.

News

Nordic American Offshore Declares Dividend

Nordic American Offshore Ltd. today announced that its board of directors has declared a dividend of $0.45 per common share for the third quarter 2014. This is the same as for the second quarter 2014.

Missouri River Basin is Booming

The U.S. Army Corps of Engineers Missouri River Basin Water Management Division is maintaining above normal releases at the four lower dams on the Missouri River.

Bollore Africa Logistics Sees Profit Plunge in H1

First half 2014 profit at shipping company Bollore Africa Logistics plunged to 5.89 billion CFA francs ($11.48 million) from 9.45 billion CFA francs in the same period last year,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Offshore Oil Pod Propulsion Ship Repair Ship Simulators Sonar 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: 0.3015 sec (3 req/sec)