Tank storage firm Vopak sets 2024 targets, favourable demand boosts 2023 earnings (updated)

Koninklijke Vopak NV

14/02/2024 07:01

(Adds details in paragraphs 2,3, 5, 6)
    By Dagmarah Mackos
       Feb 14 (Reuters) - Tank storage firm Vopak  VOPA.AS  on
Wednesday forecast full-year core profit between 880 and 920
million euros, excluding exceptional items, after posting 2023
earnings roughly in line with its target, helped by sustained
demand for storage including oil, chemicals and green energy
across markets.     
    The Dutch company, which operates terminals and storage
facilities worldwide, said in a statement that the new forecast
factors in the impact of last year's divestments in the
Netherlands and the United States, as well as "uncertainty and
volatility in storage demand indicators across the business". 
    Vopak said it focuses on expanding its gas and industrial
terminals to boost cash returns and sheds less profitable assets
in an oversupplied chemicals market.       
    For 2023, it reported an earnings before interest, tax,
depreciation and amortisation (EBITDA) of 964 million euros 
($1.03 billion), a 9% increase from the previous year, compared
with a company forecast of around 970 million euros. 
    Solid storage demand across the group's markets and
geographies and stable costs helped offset a 6 million euro hit
from divestments and negative currency effects, Vopak said.
        The group also announced a share buyback program of up
to
  
    300 million euros and will propose a cash dividend of 1.50
euro per share.
  

($1 = 0.9334 euros)

 (Reporting by Dagmarah Mackos
Editing by Shri Navaratnam and Sonia Cheema)