Vopak raises core profit forecast on strong tank storage demand (updated)

Koninklijke Vopak NV

26/07/2024 07:10

(Adds Q2 results in paragraph 3, details on outlook in
paragraph 5, context in 2 and 6)
       July 26 (Reuters) - Dutch tank storage company Vopak
 VOPA.AS  lifted its full-year core profit guidance on Friday
after it beat a quarterly forecast for the metric, driven by
strong demand across its markets and increased capacity as it
invests in new terminals.
    Instability in the Middle East has stretched global energy
supply routes, while Russia's war on Ukraine has pushed European
countries to seek alternative oil and gas supplies, increasing
demand for storage space.
    Vopak's proportional earnings before interest, tax,
depreciation and amortisation (EBITDA), excluding exceptional
items, rose to 252.1 million euros ($273.7 million) in the
second quarter, while analysts polled by the company were
expecting 298 million euros on average.
    The group, which operates terminals and storage facilities
worldwide, expects its proportional EBITDA to come between 1.15
billion and 1.18 billion euros this year, compared with an
earlier forecast of 1.14 billion to 1.18 billion euros.
    The group also raised its planned capital expenditures
related to growth projects to 350 million euros, from 300
million expected previously.
    Vopak is seeking to expand its gas and industrial terminals
to increase cash returns, and to shed less profitable assets in
the oversupplied chemicals market.
($1 = 0.9211 euros)

 (Reporting by Alban Kacher in Gdansk; Editing by Milla Nissi)
 ((alban.kacher@thomsonreuters.com))