Key highlights Q1 2023
Improve:

Started the year with Q1 2023 EBITDA of EUR 249 million and increased our EBITDA outlook for FY 2023 to above EUR 950 million.
Signed an agreement for a new debt issuance of EUR 400 million equivalent in the US Private Placement Market.

Grow:

Established a 50/50 joint venture with AltaGas for a large-scale LPG export facility in West Canada.
Strengthening Vopak’s leading position in India through four expansions in LPG and liquid products.
Developing LNG infrastructure in the Netherlands to enhance gas supply security in Europe.

Accelerate:

After signing the acquisition of a prime location in the Port of Antwerp for new energies and sustainable feedstocks we are progressing towards closing.
Investing in hydrogen logistics in Europe together with Hydrogenious.


In EUR millions Q1 2023 Q4 2022 Q1 2022

Revenues 361.8 355.3 324.1

Results -excluding exceptional items-
Group operating profit / (loss) before depreciation and amortization (EBITDA) 249.0 227.8 213.1
Group operating profit / (loss) (EBIT) 168.6 150.3 125.8
Net profit / (loss) attributable to holders of ordinary shares 103.1 88.5 74.7
Earnings per ordinary share (in EUR) 0.82 0.71 0.60

Results -including exceptional items-
Group operating profit / (loss) before depreciation and amortization (EBITDA) 249.0 226.2 213.1
Group operating profit (loss) (EBIT) 168.6 148.7 125.8
Net profit / (loss) attributable to holders of ordinary shares 103.1 86.9 74.7
Earnings per ordinary share (in EUR) 0.82 0.70 0.60

Cash flows from operating activities (gross excluding derivatives) 219.7 316.9 169.1
Cash flows from operating activities (gross) 227.0 341.2 150.2
Cash flows from investing activities (including derivatives) -103.1 -100.7 -94.8

Additional performance measures
Proportional EBITDA -excluding exceptional items- 294.1 269.6 253.7
Proportional capacity end of period (in million cbm) 22.1 22.1 22.6
Proportional occupancy rate 92% 90% 84%
Storage capacity end of period (in million cbm) 36.6 36.6 36.2
Subsidiary occupancy rate 92% 90% 83%

Proportional operating cash return 15.4% 9.3% 11.7%
Return on Capital Employed (ROCE) 12.6% 10.6% 9.1%
Average capital employed 5,223.0 5,319.4 5,418.2
Net interest-bearing debt 2,946.5 3,050.8 2,908.9
Senior net debt : EBITDA 2.49 2.65 2.70
Total net debt : EBITDA 2.69 2.85 2.92



Royal Vopak chief Executive Officer Dick Richelle, comments on the Q1 2023 results

“We continue to make good progress on our strategy to improve our financial and sustainability performance, to grow our base in industrial and gas terminals, and to accelerate towards new energies and sustainable feedstocks. The start to the year demonstrates the strength of our organization and diversity of our infrastructure portfolio across geographies, energy and manufacturing markets and customers. I am pleased to increase our outlook for the year 2023, supported by favorable storage demand and cost management. We will continue to deliver on our strategic goals while at the same time keeping our disciplined approach towards capital allocation.”

Financial highlights for Q1 2023 - excluding exceptional items

Revenues increased to EUR 362 million (Q1 2022: EUR 324 million) despite a divestment impact of EUR 13 million. The positive performance was driven by favorable storage demand, particularly a steady recovery in oil markets, contribution from growth projects and currency translation effects.
Proportional occupancy rate at Q1 2023 was 92% (4Q 2022: 90%) driven mainly by higher occupancy in the Europe & Africa division and the Asia & Middle East division.
Costs increased by EUR 10 million to EUR 175 million (Q1 2022: EUR 165 million) mainly due to increased energy costs and personnel expenses (EUR 9 million), currency translation effects (EUR 2 million) and higher operating expenses, including the cost of growth projects and business development (EUR 7 million). The cost increase was partially offset by a positive divestment impact (EUR 9 million). Compared to Q4 2022 (EUR 191 million), costs decreased by EUR 16 million mainly due to non-recurring costs recorded in Q4 2022 (EUR 12 million), divestments (EUR 4 million), lower operating expenses (EUR 8 million) and currency translation effects (EUR 3 million) which were partly offset by higher energy and personnel expenses (EUR 11 million).
EBITDA increased by 17% to EUR 249 million (Q1 2022: EUR 213 million) driven by organic growth across all divisions and currency translation effects (EUR 4 million) partially offset by higher costs and divestment impact.
EBIT was EUR 169 million (Q1 2022: EUR 126 million), an increase of EUR 43 million mainly due to EBITDA performance and lower depreciation compared to Q1 2022.
Growth investments in Q1 2023 were EUR 54 million (Q1 2022: EUR 42 million), including the growth projects in Vlaardingen in the Netherlands, Alemoa in Brazil and the transformation of Eurotank in Belgium. Proportional growth investments in Q1 2023 were EUR 64 million (Q1 2022: EUR 63 million).
Operating capex, which includes sustaining and IT capex, in Q1 2023 was EUR 50 million (Q1 2022: EUR 51 million) while proportional operating capex was EUR 55 million (Q1 2022: EUR 55 million) in line with the prior year spend.
Cash flow from operating activities increased by EUR 77 million to EUR 227 million compared to Q1 2022 EUR 150 million. The increase was related mainly to positive business performance (EUR 31 million), working capital movement and derivatives (EUR 67 million) offset by lower dividend receipts from joint ventures (EUR 21 million).
Proportional operating cash flow in Q1 2023 increased by 26% to EUR 222 million (Q1 2022 EUR 176 million) driven mainly by improved proportional EBITDA performance. Proportional operating cash return in Q1 2023 was 15.4% compared to 11.7% in Q1 2022. Proportional operating cash return from FY 2022 includes lessor accounting, excluding the impact of lessor accounting (0.6 percentage points), the increase in operating cash return was 3.1 percentage points. The change in the methodology of calculating proportional operating cash return provides better insight into the cash generation of the business.
Net profit attributable to holders of ordinary shares was EUR 103 million (Q1 2022: EUR 75 million).
The senior net debt : EBITDA ratio is 2.49x at the end of Q1 2023 (Q1 2022: 2.70x), in line with the low end of our ambition to keep senior net debt to EBITDA ratio in the range of around 2.5-3.0x. Total net debt : EBITDA is at 2.69x at the end of Q1 2023 (Q1 2022: 2.92x).

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 video webcast on Vopak’s corporate website, starting at 08:45 AM CEST on 26 April 2023.

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.

For Vopak's full press release, please refer to the attached document.

Attachment

Vopak reports on Q1 2023
go to
https://ml-eu.globenewswire.com/Resource/Download/b4a24e3f-a737-44dd-8f88-637ec99da0bd

Vopak and AltaGas form a new joint venture for large-scale LPG and bulk liquids export Terminal in Prince Rupert, Canada

The Project Would Further Strengthen Canadian and Asia Pacific Energy Connectivity, Improve Global Energy Security, and Deliver Positive Outcomes for All Stakeholders

Rotterdam, The Netherlands; Calgary and Prince Rupert, Canada 26 April 2023 - 07:05 Central European Summer Time / 25 April 2023 - 11:05pm Mountain Standard Time

Royal Vopak (“Vopak”) (XAMS: VPK) and AltaGas Ltd. (“AltaGas”) (TSX: ALA) are pleased to announce the execution of definitive agreements for a new 50/50 joint venture to further evaluate development of the Ridley Island Energy Export Facility (REEF), a large-scale liquefied petroleum gas (LPG) and bulk liquids terminal with marine infrastructure on Ridley Island, British Columbia, Canada.

REEF, as part of the previously submitted regulatory filings (under the name of Vopak Pacific Canada), will have the capability to facilitate the export of LPGs, methanol, and other bulk liquids that are vital for everyday life. REEF has been granted the key Federal and Provincial permits to construct storage tanks, a new dedicated jetty, and rail and other ancillary infrastructure required to operate a state-of-the-art and highly efficient facility. REEF would be developed on a 190-acre (77 hectare) site on lands administered by the Prince Rupert Port Authority for which the joint venture has executed a long-term lease that sits adjacent to AltaGas and Vopak’s existing Ridley Island Propane Export Terminal (RIPET), which has been in operation since April 2019.

Should REEF reach a positive final investment decision (FID), it is planned to be developed and brought online in phases. This approach will provide the most capital efficient build out of the project, match energy export supply with throughput capacity, mitigate the challenges that large development projects can have on local communities, and provide local construction and employment opportunities that would extend over longer time horizons. AltaGas has executed a long-term commercial agreement with the joint venture for 100% of the capacity for the first phase of LPG volumes, subject to a positive FID. AltaGas will also be responsible for the construction and operational stewardship of the facility. Future phases of the project will be developed as additional long-term commercial agreements and critical milestones are achieved to deliver the maximum value for all stakeholders.

Vopak, AltaGas, and the Prince Rupert Port Authority have been working closely with First Nations rights holders and key stakeholders, including the local communities in Northwestern British Columbia and the Federal and Provincial regulators, to deliver a project that will operate with industry-leading environmental stewardship and bring the strongest benefits to all parties involved. Key determinations and permits have been received from the Federal Government and an Environmental Assessment Certificate has been received from the British Columbia Provincial Government.

REEF Benefits from Structural West Coast Advantage to Asian Markets

With only ten shipping days to the fastest growing demand markets in Northeast Asia, REEF will be able to efficiently connect Canada’s vital energy products to the world. This includes having an approximate 60 percent base time savings over the U.S. Gulf Coast, which requires a minimum 25-day shipping time to Northeast Asia, and approximately 45 percent base case time savings over the Arabian Gulf, which requires a minimum 18-day shipping time. This geographic advantage expands when there is significant congestion in the Panama Canal or when other global shipping pinch points experience disruptions. Furthermore, the Port of Prince Rupert provides REEF year-round ice-free operations and has the deepest natural harbour in North America, leaving it able to accommodate the world’s largest vessels, which ensures safe and reliable market access and allows AltaGas and Vopak to efficiently connect upstream and downstream markets.

Joint Venture is Targeting Advancement of Critical Workstreams Over 2023

REEF is currently working through front end engineering design (FEED) activities, where deliverables will include a refined capital cost estimate, a project execution plan, a construction schedule, and a projected in-service date, among numerous other items. FEED and other development activities are expected to be completed by late 2023, followed by an FID by the joint venture. Solidifying long-term economic rail agreements in partnership with the rail operator will also be key for the joint venture to be able to reach a positive FID and ensure the project advances, and, in turn, delivers the strong benefits to the joint venture partners, First Nations rights holders, the Prince Rupert Port Authority, local communities, upstream and downstream customers, and other key stakeholders.

Vopak and AltaGas are excited to further evaluate the development of REEF and build on the strong partnership between the two companies, under this new joint venture agreement. Vopak and AltaGas thank all stakeholders for the continued embracement and ongoing partnerships as part of this project. Working with stakeholders and seeking strong partnerships is part of both organization’s individual and collective DNA and is engrained in how Vopak and AltaGas approach their businesses every day.

“We are excited to build on our success with AltaGas in Prince Rupert”, said Dick Richelle, Chairman of the Executive Board and CEO of Royal Vopak. “Our goal is to create together with partners high quality critical infrastructure for vital products. The strategic location of Prince Rupert, with the shortest shipping distances between North America and Asia, has the potential to increase the trade between Canada and the Asia Pacific region. REEF fits very well within Vopak’s strategic pillar to grow in gas and industrial infrastructure. We look forward to further collaboration with First Nations rights holders and key stakeholders to make this project a reality.”

“We are excited to execute this agreement and continue to advance our relationship with Vopak, the Prince Rupert Port Authority, First Nations rights holders, and the local communities surrounding Prince Rupert” said Randy Crawford, President and CEO of AltaGas. “Canada has a structural advantage in delivering LPGs into Asia from its world class resources and through the shortest shipping time and lowest maritime emissions footprint. AltaGas delivers more than 12% of Japan’s propane and 12% of South Korea’s LPG imports through connecting our valued upstream customers with key downstream markets in Asia. REEF fits our corporate strategy of operating long-life infrastructure assets that connect customers and markets and provide resilient and durable value for our stakeholders. We look forward to working with all our partners to achieving the remaining milestones required to reach a positive FID on the project.”

“We congratulate Royal Vopak and AltaGas on this significant milestone towards advancing development of the terminal project at the Port of Prince Rupert” said Shaun Stevenson, President and CEO, Prince Rupert Port Authority. “Once operational, the new facility will substantially increase and diversify the Port of Prince Rupert’s liquid bulk cargo capabilities and capacity, while providing a much-needed export solution for Canadian producers during a critical time in the global energy transition.”

“We commend Vopak and AltaGas on their efforts to-date on building long-term relationships with our community,” said Chief Harold Leighton, Metlakatla First Nation. “We are excited with the potential this joint venture project provides to our area and the Metlakatla First Nation.”

About Royal Vopak
Royal Vopak is the world’s leading independent tank storage company. We store vital products with care. Products for everyday life. The energy that allows people to cook, heat or cool their homes and for transportation. The chemicals that enable companies to manufacture millions of useful products. The edible oils to prepare food. We take pride in improving access to cleaner energy and feedstocks for a growing world population, ensuring safe, clean and efficient storage and handling of bulk liquid products and gases at strategic locations around the world. We are excited to help shape a sustainable future by developing infrastructure solutions for new vital products, focusing on zero- and low-carbon hydrogen, ammonia, CO2, long duration energy storage and sustainable feedstocks. We have a track record of over 400 years in navigating change and are continuously investing in innovation. On sustainability, we are ambitious and performance driven, with a balanced roadmap that reflects key topics that matter most to our stakeholders and where we can have a positive impact for people, planet and profit and the United Nations Sustainable Development Goals. Vopak is listed on the Euronext Amsterdam and is headquartered in Rotterdam, the Netherlands. For more information, please visit www.vopak.com

About AltaGas
AltaGas is a leading North American infrastructure company that connects customers and markets to affordable and reliable sources of energy. The Company operates a diversified, lower-risk, high-growth Utilities and Midstream business that is focused on delivering resilient and durable value for its stakeholders. The company’s mission is to improve quality of life by safely and reliably connecting customers to affordable sources of energy for today and tomorrow. From wellhead to tidewater, AltaGas’ Midstream business is focused on providing its customers with safe and reliable service and connectivity that facilitates the best outcomes for their businesses. This includes global market access for North American LPGs, which provides North American producers and aggregators with the best netbacks for LPGs while delivering diversity of supply and stronger energy security to its downstream customers in Asia. Throughout AltaGas’ operations, the company is playing a vital role within the larger energy ecosystem that keeps the global economy moving forward and is powering the possible within our society, and in a safe, reliable, and affordable manner.

Resolutions passed by Vopak’s Annual General Meeting

Rotterdam, the Netherlands, 26 April 2023

The Annual General Meeting of Koninklijke Vopak N.V. (Royal Vopak) held on 26 April 2023 passed the following resolutions:

Positive advisory vote implementation remuneration policy for the 2022 financial year.

Adoption of the financial statements for the 2022 financial year.

Approval of the proposed dividend. A dividend of EUR 1.30 per ordinary share with a nominal value of EUR 0.50 will be distributed wholly in cash on 5 May 2023. As from 28 April 2023, the shares of Vopak will be listed ex-dividend on Euronext Amsterdam.

Discharge from liability of the Executive Board members’ conduct of the company’s affairs for the 2022 financial year.

Discharge from liability of the Supervisory Board members’ supervision exercised for the 2022 financial year.

Re-appointment of Mrs. N. Giadrossi as a member of the Supervisory Board for a term of 4 years.

Approval of the amended Remuneration policy for the Supervisory Board.

Approval of the amended Remuneration policy for the Executive Board.

Authorization of the Executive Board for a period of 18 months, up till and including 25 October 2024, to acquire, subject to the approval of the Supervisory Board, for valuable consideration, fully paid-up ordinary shares in Royal Vopak, on the stock exchange or otherwise, up to the maximum number that may be held by the company in accordance with the law and the Articles of Association in force at the date of acquisition.

Appointment of Deloitte Accountants B.V. as the external auditor of Royal Vopak and their engagement to examine the company’s financial statements for the 2024 financial year.

This press release may contain inside information as meant in clause 7 of the Market Abuse Regulation.