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Vopak 2018 profit inches up 1%, gears itself up for IMO 2020 operations

14 Feb 2019

Independent tank storage company Royal Vopak posted a 1% profit increase on year in 2018 as a result of oil market conditions partly compensated by its cost efficiency programme.

“Given the market conditions in 2018, we delivered solid financial results and increased earnings per share by remaining focussed on business opportunities,” said Chairman of the Executive Board and CEO Eelco Hoekstra.

“The execution of our strategy is well on track. To meet the increasing global demand for the products we store, we made significant progress in shifting the portfolio and realizing our digital transformation.”

The company recorded net profit of EUR 289.5 million in 2018, slightly higher than profit of EUR 287.4 million in 2017.

Revenue in 2018 was EUR 1.25 billion, 4% down from EUR 1.31 billion in 2017.

Hoekstra notes Vopak making plans to prepare itself for upcoming IMO 2020, when the limit of sulphur content in marine fuel is changed from the current 3.5% to 0.5%.

It expects to invest EUR 40 million in its fuel oil network to convert capacity to the desired flexibility and cubic meters to serve the bunker market.

On 16 February, it announced plans to expand its Sebarok terminal in Singapore with 67,000 cbm to mainly cater for storage and handling of marine gas oil (MGO).

On 17 August 2018, Vopak said it will invest in its Europoort terminal in Rotterdam to support 0.5% low sulphur fuel oil bunkering; the investment will be completed in the second half year of 2019

It expects to invest EUR 40 million in its fuel oil network to convert capacity to the desired flexibility and cubic meters to serve the bunker market.

“One more reason for excitement is the progress that we have made in our digital transformation,” said Hoekstra.

“Our new unique cloud-based digital terminal management system is now in place at the first terminals in Americas and Asia. We strengthened our cybersecurity program. We believe that our digital transformation is key to growing our competitive edge and capturing the opportunities of the digital era.

“For 2019 and beyond, we continue to focus on delivery of short-term performance and seizing long-term opportunities, delivering value today and creating value for tomorrow for all stakeholders. We take pride in storing vital products with care for a growing world population.”

Related: Vopak: Net profit down 56%, ‘uncertain’ outlook for fuel oil
Related: Vopak readies storage avails for IMO 2020 0.5% sulphur cap
Related: Vopak will cater to 20% of Maersk’s global LSFO demand

Photo credit: Royal Vopak
Published: 14 February, 2019

 

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