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

People & Company News

BSEE Conducts Oil Spill Response Equipment Review

Earlier this week, BSEE's Oil Spill Response Division (OSRD) conducted an onsite review of oil spill response equipment listed in DCOR, LLC's Oil Spill Response Plan for platforms offshore Long Beach,

New Shipping Agency Enters the Market

Newly formed shipping agency Wave Shipping aims to bring change to current industry practice with its differentiated value proposition Founded by Lars Rosenkrands,

Chevron Announces Alliance with Petrol Ofisi

Chevron has signed agreements with the fuel products distribution and lubricants company of Turkey, Petrol Ofisi in Istanbul, that will result in improved supplies

Ports

Algeria in Talks to Export Crude to Venezuela

Algeria is in talks to export crude oil to fellow OPEC member Venezuela, Algerian Energy Minister Youcef Yousfi said on Tuesday, confirming a Reuters report. Last week,

New Shipping Agency Enters the Market

Newly formed shipping agency Wave Shipping aims to bring change to current industry practice with its differentiated value proposition Founded by Lars Rosenkrands,

Tankship-specific Version of FindaportCD Released

Harbour & terminal information providers, Shipping Guides Ltd, says its latest tanker-specific  addition enables customers to access the most comprehensive port

Finance

Statoil and DNV GL to Drive Subsea Factory Interface Standardization

Statoil has entered into an agreement with DNV GL to establish an industrial cooperation to introduce an international industry standard for subsea process technology.

Halliburton to Settle US Gulf Spill Claims for $1.1b

Halliburton Co said it reached a $1.1 billion settlement for a majority of claims against the company for its role in the BP oil spill in the Gulf of Mexico in 2010.

Joe Barton: Lift Oil Export Ban

A senior U.S. Congressman from Texas has come out in full support of the United States lifting the 40-year old ban on crude oil exports, putting him at odds with

Energy

Rowan Viking Rig Upgrade Completed

Damen Shiprepair Vlissingen, part of Damen Shiprepair & Conversion, has completed the upgrade of a Keppel Fels ‘N’ Class drilling rig, one of the largest in the North Sea,

Algeria in Talks to Export Crude to Venezuela

Algeria is in talks to export crude oil to fellow OPEC member Venezuela, Algerian Energy Minister Youcef Yousfi said on Tuesday, confirming a Reuters report. Last week,

Statoil and DNV GL to Drive Subsea Factory Interface Standardization

Statoil has entered into an agreement with DNV GL to establish an industrial cooperation to introduce an international industry standard for subsea process technology.

News

BSEE Conducts Oil Spill Response Equipment Review

Earlier this week, BSEE's Oil Spill Response Division (OSRD) conducted an onsite review of oil spill response equipment listed in DCOR, LLC's Oil Spill Response Plan for platforms offshore Long Beach,

New Bulk Carrier Design Puts Ecoships in the Lotus Position

Ecoships, the technical shipmanagement arm of Newport Shipping Group, has introduced a next generation bulk carrier design, developed to set the standard in ecologically

Polar Code Afoot

The IMO is on the verge of adopting the Polar Code, something that is important and long overdue. The International Maritime Organization (IMO), a specialized agency of the United Nations,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Pipelines Pod Propulsion Port Authority Salvage Ship Electronics 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: 0.2280 sec (4 req/sec)