Vopak reports on Q3 2022 results

The Netherlands, 11 November 2022

Vopak reports improved EBITDA of EUR 227 million in Q3 2022 and raises its full-year 2022 EBITDA outlook to around EUR 890 million

Key highlights - excluding exceptional items

• Improved financial performance supported by business conditions and currency gains. 2022 outlook for EBITDA and proportional operating cash return increased.
• Growing our footprint in industrial terminals in China and increased send-out capacity in Gate LNG terminal in Rotterdam.
• Accelerating in new energies by repurposing oil capacity in Los Angeles to sustainable aviation fuel and renewable diesel and taking a share in the electricity storage company Elestor.

Q3 2022	Q2 2022	Q3 2021 (restated)	in EUR millions	YTD Q3 2022	YTD Q3 2021 (restated)
349.6	338.0	309.5	Revenues	1,011.7	912.7
			Results -excluding exceptional items-
226.9	219.4	210.8	Group operating profit / (loss) before depreciation and amortization (EBITDA)	659.4	614.1
140.3	130.9	127.9	Group operating profit / (loss) (EBIT)	397.0	372.9
77.7	53.5	80.6	Net profit / (loss) attributable to holders of ordinary shares	205.9	229.2
0.62	0.42	0.65	Earnings per ordinary share (in EUR)	1.64	1.83
			Results -including exceptional items-
229.7	-245.0	201.4	Group operating profit / (loss) before depreciation and amortization (EBITDA)	197.8	535.0
143.1	-333.5	118.5	Group operating profit / (loss) (EBIT)	- 64.6	293.8
80.5	-410.5	71.2	Net profit / (loss) attributable to holders of ordinary shares	- 255.3	150.1
0.64	-3.28	0.57	Earnings per ordinary share (in EUR)	-2.04	1.20
197.9	214.0	166.0	Cash flows from operating activities (gross excluding derivatives)	581.0	473.1
191.3	189.4	166.9	Cash flows from operating activities (gross)	530.9	429.0
- 117.9	- 176.0	- 160.2	Cash flows from investing activities (including derivatives)	- 388.7	- 448.7
			Additional performance measures
277.4	267.1	257.3	Proportional EBITDA -excluding exceptional items-	798.2	749.0
22.2	22.3	22.5	Proportional capacity end of period (in million cbm)	22.2	22.5
89%	87%	88%	Proportional occupancy rate	87%	88%
36.6	36.7	36.1	Storage capacity end of period (in million cbm)	36.6	36.1
88%	87%	87%	Subsidiary occupancy rate	86%	87%
11.2%	11.1%	11.0%	Proportional operating cash return	11.3%	11.1%
10.4%	9.3%	10.4%	Return on capital employed (ROCE)	9.6%	10.4%
5,344.3	5,538.7	4,783.4	Average capital employed	5,443.4	4,624.4
3,278.7	3,211.4	2,979.4	Net interest-bearing debt	3,278.7	2,979.4
2.82	2.86	2.93	Senior net debt : EBITDA	2.82	2.93
3.02	3.06	3.16	Total net debt : EBITDA	3.02	3.16

_{The prior periods related to financial year 2021 have been restated, due to mandatory full retrospective application of a change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing Arrangements.}

_{Proportional operating cash return is defined as proportional operating cash flow over average proportional capital employed and reflects the increased importance of free cash flow and joint ventures in our portfolio.}

Royal Vopak Chief Executive Officer Dick Richelle, comments on the results:

“Our strong third quarter performance demonstrates that our well diversified infrastructure portfolio uniquely positions Vopak to serve our customers amidst highly uncertain times. The deployment of growth capex towards our strategic priorities is going well, with growth in industrial and gas terminals and acceleration towards new energies. Our improved financial performance and solid strategy execution allows us to update our outlook for FY 2022, by increasing our expectation for EBITDA and proportional operating cash return.”

Financial highlights for YTD Q3 2022 - excluding exceptional items

• Revenue increased to EUR 1 billion, driven by a favorable chemical and gas market environment, positive currency translation effects and growth project contribution.
• Proportional occupancy rate YTD Q3 2022 was 87% (YTD Q3 2021: 88%). Proportional occupancy improved to 89% in Q3 2022 from Q2 2022 (87%) driven mainly by performance in Asia and Middle East, New Energy and LNG and Americas.
• Costs increased by EUR 69 million to EUR 522 million (YTD Q3 2021 453 million) mainly due to surging energy prices (EUR 31 million), currency translation effects (EUR 22 million), personnel expenses (EUR 14 million) and cost of growth projects and business development.
• EBITDA increased to EUR 659 million (YTD Q3 2021 614 million) supported by business conditions, currency translation effects (EUR 44 million) and growth projects’ contribution (EUR 20 million) which were partly offset by higher costs.
• EBIT increased to EUR 397 million (YTD Q3 2021 EUR 373 million), adjusted for EUR 32 million positive currency translation effects, EBIT decreased by EUR 8 million. Depreciation charges were higher compared to the same period last year mainly due to an increase in commissioned growth assets.
• Growth investments in YTD Q3 2022 were EUR 270 million (YTD Q3 2021 226 million), reflecting the completion of the acquisition of our joint venture in India with Aegis in Q2 2022. Proportional growth investments in YTD Q3 2022 was EUR 299 million. Operating capex, which includes sustaining and IT capex, in YTD Q3 2022 was EUR 194 million (YTD Q3 2021 217 million) while proportional operating capex was EUR 211 million (YTD Q3 2021 245 million).
• Cash flow from operating activities increased by EUR 108 million to EUR 581 million, driven by good operational performance and dividend receipts from joint ventures and associates which increased by EUR 109 million compared to YTD Q3 2021.
• Proportional Operating Cash flow in YTD Q3 2022 was EUR 514 million. Proportional operating cash return in YTD Q3 2022 of 11.3% vs 11.1% in YTD Q3 2021 driven by positive proportional EBITDA performance and lower operating capex during YTD Q3 2022.
• Net profit attributable to holders of ordinary shares of EUR 206 million (YTD Q3 2021: EUR 229 million). Tax charges increased as a result of the write off of the deferred tax assets in the Netherlands in Q2 2022.
• The senior net debt : EBITDA ratio is 2.82 at the end of YTD Q3 2022, within our previously communicated ambition to keep senior net debt to EBITDA ratio in the range of around 2.5-3.0x. Average interest rate on total debt at the end of Q3 2022 was 2.9%. Interest coverage ratio at the end of Q3 2022 stood at 8.6x, well above the agreed level of 3.5x.
• During Q3 2022, there was an update on the recognized exceptional gain realized upon divestment (100%) of two Canadian entities of EUR 2.8 million, bringing the total gain to EUR 8.5 million.

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

Attachment

• Press Release - Vopak reports on Q3 2022