Vopak Reports "Market Challenges" in Q1

by Ship & Bunker News Team
Wednesday April 23, 2014

Vopak reports that its revenues slipped and profits dropped in the first quarter of 2014 due to market weakness in the Europe, Middle East, and Africa (EMEA) region.

The company's revenues fell 1 percent to €318.0 million ($440 million) year-over year, while net profit for ordinary shares was down 17 percent to €68.2 million ($94.3 million).

The company reiterated plans to review its market strategy for the future.

"Although the current development of our financial performance can be explained by market challenges and uncertainties, it is not in line with our long-term ambitions," said CEO Eelco Hoekstra.

Hoekstra said the company has begun reviewing all its projects under construction and working to align its network with projections for future market developments.

"Overall, we remain confident that our terminal network provides a solid foundation for future performance," he said.

"In the long run, we see growing imbalances in the world between supply and demand of energy products and chemicals, increasing global trade, the necessity for excellent supply chain solutions and the need for safe and reliable storage."

In a presentation on the results, Vopak cited a "difficult business environment in Estonia," where a Vopak joint venture recently announced it was downsizing its operations.

Ship & Bunker News Team
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