Asian Markets Help Vopak Profits Climb 19%

Vopak is expanding its global network of terminals

Royal Vopak N.V. (Vopak) saw its profits rise by 19 percent to €144 million ($183 million) year-over-year in the third quarter of 2012 thanks to what it called “healthy demand” for tank storage services at its terminals despite “economic turbulence.”

“Despite some lower occupancy rates in certain locations, the overall demand for oil storage services remains robust and for chemical storage services relatively steady,” said Eelco Hoekstra, Chairman of the Executive Board.

“Although we have experienced some improvements in the market for the storage and handling of biofuel products in 2012, the flows continue to be unpredictable.”

Vopak’s Asian division did particularly well, with operating profits there rising 26 percent to €56.6 million ($72 million), as occupancy rates rose in Singapore and the company added new storage capacity in China.

“The demand for storage at the hub terminals remains strong, with high occupancy rates in Singapore and Korea,” the company said.

“However, the petrochemical downstream industry is hampered by the global economic situation and credit tightening policies in key markets of China.”

Overall, occupancy rates fell slightly, from 93 percent to 91 percent year-over-year, but the company also added capacity, completing 0.7 million cubic meters (cbm) during the quarter, mainly in the Netherlands, and ending the quarter with a total capacity of 29.9 cbm.

The company also completed a joint acquisition of the former Coryton refinery in the U.K., where it plans to create new import and distribution terminal for oil products.

Last month, Vopak secured a $1 billion private placement deal, which is said would help finance the expansion of its global terminal network.