Vopak’s expansion programme “on track” as it shifts its portfolio towards growth opportunities
Vopak is set to have a transformational year in 2019 as it will deliver an expansion programme with high commercial coverage. The 2017-2019 strategy execution, set towards further growth and performance delivery is well on track. Capital allocation decisions are shifting the portfolio further towards industrial, chemicals and LNG, LPG and chemical gases terminals with access to further growth opportunities.
Eelco Hoekstra, Chairman of the Executive Board & CEO, said: “It is all about the strategy execution. It has two elements – the short-term execution that makes sure we have our short term earning in order. And it’s the long term viability of Vopak.”
Vopak is confident that it will deliver short-term performance through focus on commercial efforts and cost management while managing long-term value through execution of growth projects, new business development and portfolio management together with its digital investment program. Major expansion projects are currently under development in Malaysia, Canada, Brazil, and South Africa. Commissioning of new chemical capacity in Deer Park, Houston, the United States, starts this week.
Eelco gave two key messages to shareholders and press at the company’s Capital Markets Day held at its Deer Park Terminal in Houston. “We radiate confidence in our short term performance and our ability to create value over a longer period of time. And the confidence comes from three particular things: first of all we believe we have a exceptionally diverse portfolio if you compare that to other competitors. It is geographically spread and spread from a product perspective. We believe we have a very strong competitive position and capability to execute in constructing, operating and renting out these terminals. Fourthly, we have a clear and robust financial framework that gives us the flexibility and opportunity to move as and when is required.
“The second point that I would like to highlight is that if you take the 2017-2019 strategy and look at it in a timeline you will see we are well on track to achieving these ambitions.”
He went on to explain how the storage industry will develop in the next decade: “We continue to have an undiminished, positive view about our world’s society and the necessity of maritime storage globally. That view is supported by long term trends and long term analysis on how the world economy will develop.”
He notes that the petrochemical manufacturing and refining industries are increasing in scale and therefore need to be connected to the storage industry.
For more information visit www.vopak.com
28th November 2018