Vopak reports on 2019 financial results
Q4 2019 | pro forma Q4 2019* | Q3 2019 | Q4 2018 | in EUR millions | 2019 | pro forma 2019* | 2018 | '19-'18 |
298.8 | 298.8 | 312.4 | 317.0 | Revenues | 1,252.6 | 1,252.6 | 1,254.5 | 0% |
Results -excluding exceptional items- | ||||||||
204.8 | 196.2 | 202.4 | 180.7 | Group operating profit before depreciation and amortization (EBITDA) | 829.8 | 784.8 | 734.3 | 13% |
132.1 | 131.8 | 132.6 | 110.6 | Group operating profit (EBIT) | 539.1 | 526.4 | 463.3 | 16% |
93.8 | 97.9 | 91.1 | 78.8 | Net profit attributable to holders of ordinary shares | 357.8 | 364.1 | 289.5 | 24% |
0.73 | 0.76 | 0.72 | 0.62 | Earnings per ordinary share (in EUR) | 2.80 | 2.85 | 2.27 | 23% |
Results -including exceptional items- | ||||||||
204.7 | 196.3 | 393.7 | 183.0 | Group operating profit before depreciation and amortization (EBITDA) | 1,038.5 | 993.7 | 754.8 | 38% |
132.0 | 131.9 | 323.9 | 110.8 | Group operating profit (EBIT) | 747.8 | 735.3 | 481.7 | 55% |
100.0 | 104.2 | 280.6 | 80.4 | Net profit attributable to holders of ordinary shares | 571.0 | 577.4 | 254.5 | 124% |
0.78 | 0.81 | 2.20 | 0.63 | Earnings per ordinary share (in EUR) | 4.47 | 4.52 | 1.99 | 125% |
172.3 | 185.7 | 190.4 | Cash flow from operating activities (gross) | 709.7 | 687.0 | |||
-149.3 | 225.0 | -231.0 | Cash flow from investing activities (including derivatives) | -256.1 | -589.4 | |||
Additional performance measures | ||||||||
269.5 | 258.4 | 231.8 | 206.5 | Proportional EBITDA -excluding exceptional items- | 980.7 | 929.7 | 821.6 | 19% |
84% | 82% | 85% | Occupancy rate subsidiaries | 84% | 86% | |||
34.4 | 35.5 | 37.0 | Storage capacity end of period (in million cbm) | 34.4 | 37.0 | |||
12.5% | 12.5% | 12.0% | 10.8% | Return on Capital Employed (ROCE)** | 12.4% | 12.4% | 11.6% | |
4,223.8 | 4,223.8 | 4,252.2 | 4,095.5 | Average capital employed** | 4,247.3 | 4,247.3 | 4,005.7 | |
2,335.3 | 1,770.4 | 2,319.6 | 1,825.0 | Net interest-bearing debt | 2,335.3 | 1,770.4 | 1,825.0 | |
2.75 | 2.75 | 2.81 | 2.49 | Senior net debt : EBITDA (frozen GAAP) | 2.75 | 2.75 | 2.49 | |
* Pro forma excludes the IFRS 16 effects to allow comparison on the results to prior year ** Roce and Capital employed definition have been applied consistently for all periods presented and is not affected by IFRS 16 |
Highlights for full year and Q4 2019 -excluding exceptional items-
- Full year EBITDA of
EUR 830 million (2018:EUR 734 million ) increased byEUR 96 million , reflecting good aggregate business (including new assets) performance ofEUR 37 million , positive currency translation effects ofEUR 14 million and positive IFRS 16 effects ofEUR 45 million . - Occupancy rate of 84% (2018: 86%) reflected IMO 2020 capacity conversions during the year and ongoing market conditions at oil hub terminals.
- Full year EBIT of
EUR 539 million (2018:EUR 463 million ) increased byEUR 76 million , including good performance from new assets, partly offset by hub terminals inEurope andSingapore , positive currency translation effects ofEUR 11 million , lower depreciation (from terminals classified as held for sale) ofEUR 22 million and positive IFRS 16 effects ofEUR 13 million . - Return on Capital Employed increased to 12.4% (2018: 11.6%).
- Significant increase in net profit attributable to holders of ordinary shares (24%) to
EUR 358 million (2018:EUR 290 million ), resulting in earnings per ordinary share ofEUR 2.80 (2018:EUR 2.27 ). - The efficiency program to reduce Vopak's cost base is delivered; the cost level for 2019 amounted to
EUR 633 million .
- Q4 EBITDA of
EUR 205 million (Q3 2019:EUR 202 million ) reflected positive effects from settlements, good performance from converted IMO 2020 capacity and contributions from growth projects, replacing the EBITDA from terminals divested in September. - Q4 occupancy rate of 84% (Q3 2019: 82%) trended upwards following contracted IMO 2020 capacity coming into operations whereas adverse market conditions at oil hub terminals continued.
- In the fourth quarter, new capacity was delivered from growth projects in
Brazil ,Mexico ,Panama andSingapore .
Vopak announces a share buyback program to return
A dividend of
Exceptional items 2019:
- Total exceptional gains included in net profit amounted to
EUR 213 million (2018: exceptional losses ofEUR 35 million ). This mainly comprised the aggregate divestment gains of terminals inAmsterdam ,Hamburg ,Tallinn andHainan , a tax provision recognized in a joint venture in theAsia &Middle East division and an impairment recognized for the terminal in Quebec City inCanada .
Subsequent events:
- In
January 2020 , the associate industrial terminal PT2SB inMalaysia repaid part of its preference share capital, which resulted in a cash inflow ofEUR 85 million for Vopak in the first quarter of 2020. - On
31 January 2020 , Vopak completed the earlier announced divestment of its 100% shareholding in the terminal in Algeciras,Spain generating a cash inflow ofEUR 135 million in the first quarter of 2020. - On
12 February 2020 , Vopak announced the expansion of the Vopak Shanghai -Caojing Terminal with 65,000 cbm for chemical gas products. This industrial terminal serves the chemical plants that are located in theShanghai Chemicals Industry Park (SCIP) and its adjacent areas. The additional storage capacity has been fully rented out under long-term contracts and is expected to be commissioned in the second half of 2022.
- Strong EBITDA and significant increase in earnings per share
- Continued growth investments and
EUR 100 million share buyback program - Portfolio well-positioned for future opportunities
Performance
2019 was a successful year for Vopak. We executed our strategy, realized strong EBITDA and significantly increased earnings per share.
Over the years 2017-2019, we have been transforming our portfolio through
Delivery of our digital strategy has progressed well. We continued the roll-out of our new cloud-based system for our terminals, as part of broader efforts to develop our digital architecture. Growing Vopak’s digital capabilities and using data are key to our short-term performance and long-term value creation, as well as to our position as the leading independent tank storage company.
Looking ahead
We continue the course we set in previous years. We focus on performance and value.
Our financial framework and priorities for cash are unchanged. We will use the majority of cash from recent strategic divestments to grow our portfolio. We propose to increase our annual dividend by 5% over 2019 and announce today a
- We aim to grow EBITDA over time with new contributions from growth projects and IMO 2020 converted capacity and replace the EBITDA from divested terminals, subject to general market conditions.
- In the period 2020-2022, Vopak may invest
EUR 750 million toEUR 850 million in sustaining and service improvement capex, subject to additional discretionary decisions, policy changes and regulatory environment. - To complete the Vopak’s digital terminal management system build and roll-out, Vopak expects to spend annually
EUR 30 million toEUR 50 million in IT capex over the period 2020-2022. - We continue with further strengthening our cost culture and expect to compensate for annual inflation in our cost performance.
- We will continue to look for attractive ventures in new energies and innovative technologies.
- Growth investment for 2020 could amount to
EUR 300 million toEUR 500 million .
For 2020 and beyond, we will keep storing vital products with care to make a meaningful contribution to a more sustainable society, enabled by our financial performance.
Link to video of CEO and CFO commenting on Vopak's FY 2019 results
Link to Vopak's report and presentations where the Annual Report 2019 is published
The analyst presentation will be given via an on-demand audio webcast on Vopak’s corporate website www.vopak.com, starting at
For more information please contact:
Telephone: +31 (0)10 400 2777 | e-mail: global.communication@vopak.com
Vopak Analysts and Investors:
Telephone: +31 (0)10 400 2776 | e-mail: investor.relations@vopak.com
Auditor’s involvement
This press release and enclosure 4 in the press release are based on the 2019 financial statements. The financial statements are published in accordance with statutory provisions. The auditor has issued an unqualified auditor’s report on the Financial Statements.
This press release contains inside information as meant in clause 7 of the Market Abuse Regulation.
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- 2020-02-12 Vopak reports on 2019 financial results
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