Company Announcements

The Netherlands, 24 April 2024

Vopak reports strong Q1 2024 results and increases FY 2024 outlook

Key highlights Q1 2024

Improve

• Increased net profit -including exceptional items¹- in Q1 2024 to EUR 106 million, an improvement of 3% year-on-year, driven by favorable storage demand across different geographies and markets
• Increased proportional EBITDA -excluding exceptional items¹- in Q1 2024 to EUR 298 million, an improvement of 9% year-on-year when adjusted for divestment impacts of EUR 21 million
• Further strengthened balance sheet, good progress on share buyback program
• Increased FY 2024 outlook for proportional EBITDA and EBITDA

Grow

• Strengthened our leading position in India with the acquisition of a new terminal in Mangalore
• Good progress in developing a greenfield LPG-export terminal project in Western-Canada

Accelerate

• Commissioned repurposed infrastructure in Singapore for low-carbon transportation fuels, good progress in repurposing existing capacity in Alemoa, Brazil and Vlaardingen, the Netherlands

In EUR millions	Q1 2024	Q4 2023	Q1 2023
IFRS Measures -including exceptional items-
Revenues	328.2	352.8	361.8
Net profit / (loss) attributable to holders of ordinary shares	105.8	87.4	103.1
Earnings per ordinary share (in EUR)	0.85	0.69	0.82
Cash flows from operating activities (gross)	278.8	219.7	227.0
Cash flows from investing activities (including derivatives)	-111.1	247.4	-103.1
Alternative performance measures -excluding exceptional items- 1,2
Group operating profit / (loss) before depreciation and amortization (EBITDA)	235.0	228.8	249.0
Net profit / (loss) attributable to holders of ordinary shares	105.8	109.0	103.1
Earnings per ordinary share (in EUR)	0.85	0.87	0.82
Proportional revenues	477.9	494.1	486.1
Proportional group operating profit / (Loss) before depreciation and amortization (EBITDA)	297.8	282.3	294.1
Business KPIs
Storage capacity end of period (in million cbm)	34.8	35.2	36.6
Proportional storage capacity end of period (in million cbm)	20.2	20.6	22.1
Subsidiary occupancy rate	92%	91%	92%
Proportional occupancy rate	93%	91%	92%
Financial KPIs 2
Proportional operating cash return	17.0%	12.8%	15.4%
Net interest-bearing debt	2,223.4	2,286.4	2,946.5
Total net debt : EBITDA	1.76	1.99	2.69

¹ No exceptional items were recorded in Q1 2024 and Q1 2023
² See enclosure 2 of the press release for reconciliation to the most directly comparable subtotal or total specified by IFRS Accounting Standards 

CEO statement

“In the first quarter of 2024, we continued to deliver on our strategy to improve our financial and sustainability performance, to grow our business in industrial and gas terminals, and to accelerate towards new energies and sustainable feedstocks. The demand for our infrastructure services remained robust, resulting in an increased proportional occupancy of 93%. Oil and gas markets were strong, driven by a higher demand for energy, and rerouting of supply chains. Chemical markets remain under pressure, having a limited impact on our chemical distribution terminals so far, while industrial terminals maintained solid results, backed by long-term take-or-pay contracts. We continue to grow our footprint in India and acquired a new terminal in Mangalore. Our strong performance and strategy execution coupled with favorable market conditions positions us well to revise our outlook for FY 2024 upwards. We are committed to grow our business in industrial and gas infrastructure and accelerate towards new energies and sustainable feedstocks.”

Financial Highlights for Q1 2024 

IFRS Measures -including exceptional items-

• Revenues were EUR 328 million (Q1 2023: EUR 362 million), adjusted for divestment impacts of EUR 44 million revenues increased by 3% year-on-year. The positive performance was driven by favorable storage demand across different geographies and markets. 
• Demand for our services continued to be robust during the first quarter of 2024. In the hub locations, storage demand was strong, primarily driven by the continued rise in demand for oil and the rerouting of trade flows. Demand in the distribution oil terminals remained firm as well. Chemical markets continued to be characterized by oversupply which put pressure on end-product prices and production margins. In chemical distribution terminals, the impact on demand for storage infrastructure was limited, but remains uncertain for the rest of the year. Throughput levels in our industrial terminals were solid. Gas terminals showed firm throughput levels, backed by growing energy demand and energy security considerations.
• Operating expenses were EUR 155 million in Q1 2024 (Q1 2023: EUR 175 million),  adjusted for divestment impacts of EUR 24 million these expenses increased by EUR 4 million mainly due to an increase in personnel expenses.
• Cash flows from operating activities increased by EUR 52 million to EUR 279 million compared to Q1 2023 EUR 227 million, a 23% increase year-on-year, mainly related to increased dividends received from joint ventures (EUR 80 million) partly offset by lower EBITDA due to divestment impacts and negative working capital movements. 
• Net profit attributable to holders of ordinary shares increased to EUR 106 million (Q1 2023: EUR 103 million). Earnings per share (EPS) continued to improve, Q1 2024 EPS were EUR 0.85 (4% year-on-year) compared to EUR 0.82 in Q1 2023.
• Share buyback program of up to EUR 300 million announced on 14 February 2024, is progressing well. Since the start, around 30% of the program has been executed per April 19^th, and will run until the end of 2024, barring unforeseen circumstances. For the progress of our share buyback program please visit our website.

Alternative performance measures -excluding exceptional items-¹

• Proportional EBITDA increased to EUR 298 million (Q1 2023: EUR 294 million). Adjusted for divestment impacts of EUR 21 million, proportional EBITDA increased by EUR 25 million (9% year-on-year). Proportional EBITDA margin in Q1 2024 was 60% (Q1 2023: 58%) reflecting good business conditions and our commercial ability to pass on inflationary and exceptional energy costs.
• EBITDA was EUR 235 million (Q1 2023: EUR 249 million) adjusted for divestment impacts of EUR 21 million. EBITDA increased by EUR 7 million (3% year-on-year) as a result of favorable storage demand across the various markets and geographies. Compared to Q4 2023 (EUR 229 million), EBITDA increased due to the lower operating expenses and slightly higher results from joint ventures which more than offset divestment impacts of EUR 12 million. 
• Growth capex in the first quarter was EUR 64 million (Q1 2023: EUR 54 million) reflecting growth investments in India, Belgium, the United States, and Canada, among others. Proportional growth investments in Q1 2024 were EUR 83 million (Q1 2023: EUR 64 million).
• Operating capex, which includes sustaining and IT capex, decreased to EUR 40 million (Q1 2023: EUR 50 million) due to divestment impacts. 
• Proportional operating cash flow in Q1 2024 increased by EUR 6 million (3% year-on-year) to EUR 228 million (Q1 2023 EUR 222 million) driven mainly by improved proportional EBITDA performance. Proportional operating cash flow per share in Q1 2024 increased to EUR 1.83 per share from EUR 1.77 in Q1 2023.

Business KPIs

• Proportional occupancy rate at Q1 2024 increased to 93% (Q1 2023: 92%) mainly related to increased occupancy in the Netherlands Business Unit due to reduced available capacity. In Europoort, we have reduced the base capacity by ~380 thousand cbm in line with our previously announced ambition to gradually reduce oil capacity in Europoort, to accelerate towards new energies and sustainable feedstocks. 

Financial KPIs

• Proportional operating cash return in Q1 2024 was 17% compared to 15% in Q1 2023. The increase was mainly due to a lower average capital employed due to  divestments and positive contribution from new growth projects.
• Total net debt : EBITDA ratio is 1.76x at the end of Q1 2024 compared to 2.69x at the end of Q1 2023 and 1.99x at the end of Q4 2023. Our ambition is to keep Total net debt to EBITDA in the range of around 2.50-3.00x.

For more information please contact:

Vopak Press: Liesbeth Lans - Manager External Communication, e-mail: global.communication@vopak.com
Vopak Analysts and Investors: Fatjona Topciu - Head of Investor Relations, e-mail: investor.relations@vopak.com

The analysts’ presentation will be given via an on-demand audio webcast on Vopak’s corporate website, starting at 08:45 AM CEST on 24 April 2024.

This press release contains inside information as meant in clause 7 of the Market Abuse Regulation. The content of this report has not been audited or reviewed by an external auditor.

1.  To supplement Vopak’s financial information presented in accordance with IFRS, management periodically uses certain alternative performance measures to clarify and enhance understanding of past performance and future outlook. For further information please refer to page 7of the press release.

Attachment

• Press Release Q1-2024