Vopak reports strong FY 2024 results, increases dividend distribution and announces a new share buyback program
Key highlights FY 2024
Improve
Net profit -including exceptional items- FY 2024 of EUR 376 million and EPS of EUR 3.12
Proportional EBITDA -excluding exceptional items1- increased in FY 2024 by EUR 16 million to a record of EUR 1,170 million
Successfully completed share buyback program of EUR 300 million, proposed a dividend of EUR 1.60 per share and announced a new share buyback program of EUR 100 million that will start on 20 February 2025 and will run until the end of 2025
Grow
In 2024, we made good progress on the expansions of our gas infrastructure in Canada, India and the Netherlands and on the industrial expansions in China and Saudi Arabia
EemsEnergyTerminal launched an open season for the storage and regasification of LNG after 2027
Accelerate
In 2024, we progressed in new energies and sustainable feedstocks developments by repurposing capacity in Singapore, Brazil and the Netherlands and by investing in battery energy storage in the US and the Netherlands
Committed EUR 15 million to further develop infrastructure for waste-based feedstocks at Vlaardingen terminal in the Netherlands
Q4 2024
Q3 2024
Q4 2023
In EUR millions
2024
2023
IFRS Measures -including exceptional items-
336.9
325.0
352.8
Revenues
1,315.6
1,425.6
63.9
99.3
87.4
Net profit / (loss) attributable to holders of ordinary shares
375.7
455.7
0.56
0.83
0.69
Earnings per ordinary share (in EUR)
3.12
3.63
210.2
219.4
219.7
Cash flows from operating activities (gross)
947.5
943.1
-120.0
-111.0
247.4
Cash flows from investing activities (including derivatives)
-495.3
109.6
Alternative performance measures -excluding exceptional items- 1
485.0
479.1
494.1
Proportional revenues
1,917.5
1,941.9
276.7
294.1
282.3
Proportional group operating profit / (loss) before depreciation and amortization (EBITDA)
1,170.2
1,154.0
214.2
233.3
228.8
Group operating profit / (loss) before depreciation and amortization (EBITDA)
934.6
963.5
79.0
97.5
109.0
Net profit / (loss) attributable to holders of ordinary shares
403.1
412.9
0.67
0.83
0.87
Earnings per ordinary share (in EUR)
3.34
3.29
Business KPIs
35.4
35.2
35.2
Storage capacity end of period (in million cbm)
35.4
35.2
20.4
20.3
20.6
Proportional storage capacity end of period (in million cbm)
20.4
20.6
93%
92%
91%
Subsidiary occupancy rate
92%
91%
93%
92%
91%
Proportional occupancy rate
93%
91%
Financial KPIs 1
11.8%
15.1%
12.8%
Proportional operating cash return
15.1%
14.0%
2,672.0
2,574.9
2,286.4
Net interest-bearing debt
2,672.0
2,286.4
2.35
2.28
1.99
Total net debt : EBITDA
2.35
1.99
Sustainability performance
Total Injury Rate (TIR)
0.21
0.16
Process Safety Event Rate (PSER)
0.08
0.09
Total GHG emissions 2 - Scope 1 & 2 (in 1,000 metric tons)
209.0
253.7
Percentage women in senior management positions
22%
20%
CEO message
“I am proud to reflect on our successes during 2024. The Vopak team has delivered on our strategic priorities to improve our sustainability and financial performance, grow our footprint in gas and industrial terminals, and accelerate progress in new energies and feedstocks. The demand for our infrastructure services continued to be strong across most business units, underpinned by a proportional occupancy of 93% and leading to a record level of proportional EBITDA. On safety, which is our most important priority, we delivered solid results in both personal and process safety. We made good progress on the expansions of our gas infrastructure in Canada, India and the Netherlands and on industrial expansions in China and Saudi Arabia. In India, our joint venture AVTL, is exploring options to fund growth through a local listing. In multiple locations around the world we are repurposing capacity for new energies and in the US and the Netherlands we made our first investments in battery energy storage. Driven by strong cash generation from our portfolio and our robust financial position, we are proposing an increase in the dividend distribution of 6.7% compared to 2023 and announcing a new share buyback program of up to EUR 100 million in 2025. We look forward to providing further updates on our strategic priorities and long-term outlook during our Capital Markets Day on 13 March 2025.”
Financial Highlights for FY 2024
Demand for our services was healthy during 2024. Throughput levels in our industrial terminals increased year-on-year factoring in new industrial capacity being commissioned in China. Gas terminals performance showed firm throughput levels, backed by growing energy demand and energy security considerations around the globe. Amidst weak chemical markets, the demand for storage infrastructure was stable. In the oil hub locations, solid storage demand was primarily driven by the continued growth in oil demand globally and the rerouting of trade flows. Despite some market challenges in Mexico, demand in the other oil distribution terminals remained firm.
IFRS Measures -including exceptional items-
Revenues were EUR 1,316 million (FY 2023: EUR 1,426 million). Adjusted for the divestment impacts of chemical distribution terminals in Rotterdam (2023), Savannah (2023) and Lanshan (2024) of EUR 157 million and negative currency translation effects of EUR 5 million, revenues increased by 4% year-on-year. The positive performance was driven by favorable storage demand across different geographies and markets and the contribution of growth projects.
Operating expenses consisting of personnel and other expenses were EUR 662 million in 2024 (2023: EUR 739 million). Adjusted for positive divestment impacts of EUR 84 million and currency translation effects of EUR 2 million, expenses increased by EUR 9 million, mainly due to increased personnel expenses which were partially offset by lower energy and utility expenses.
Cash flows from operating activities increased by EUR 5 million to EUR 948 million compared to FY 2023 EUR 943 million, an increase mainly as a result of higher dividend receipts from joint ventures and associates which increased by EUR 73 million compared to 2023, partially offset by the decrease in operational result due to divestments.
Net profit attributable to holders of ordinary shares was EUR 376 million in FY 2024 compared to FY 2023 EUR 456 million. The decrease reflects the divestment impacts and exceptional items recognized. Earnings per share (EPS) for FY 2024 was EUR 3.12 compared to EUR 3.63 for FY 2023.
Shareholder distribution:
2024 share buyback program of up to EUR 300 million announced on 14 February 2024, was completed on 9 December 2024. A total of 7,924,438 ordinary shares, 6.30% of the company’s outstanding shares, were repurchased, at an average price of EUR 37.86 per share. For further details on the share buyback program please visit our website.
Dividend of EUR 1.60 (2023: EUR 1.50) per ordinary share payable in cash, will be proposed at the Annual General Meeting on 23 April 2025. This represents an increase of 6.7% compared to 2023, in line with Vopak’s stable to progressive dividend policy which aims to maintain or grow the annual dividend subject to market conditions.
2025 share buyback program of up to EUR 100 million. Today we are announcing a share buyback program that will start on 20 February 2025 and will run until the end of 2025, barring unforeseen circumstances.
Alternative performance measures -excluding exceptional items-3
Proportional revenues were EUR 1,918 million, (FY 2023: EUR 1,942 million) an 8% increase after adjusting for divestment impacts of EUR 155 million and negative currency translation effects of EUR 9 million.
Proportional EBITDA increased to EUR 1,170 million (FY 2023: EUR 1,154 million). Adjusted for divestment impacts of EUR 75 million and negative currency translation effects of EUR 5 million, proportional EBITDA increased by EUR 96 million (9% year-on-year), driven mainly by growth project contribution. Compared to Q3 2024, proportional EBITDA decreased by EUR 17 million to EUR 277 million in Q4 2024, primarily driven by negative one-offs of EUR 20 million. The one-offs were primarily related to currency revaluation of specific receivables, EemsEnergyTerminal financial impact due to technical challenges, certain provisions and other items. As previously mentioned, EemsEnergy Terminal in the Netherlands, continues to face temporary technical challenges which have financial implications. The aim is to have these challenges resolved during 2025. The terminal remains fully operational.
Proportional EBITDA margin FY 2024 was 57% (FY 2023 56%).
EBITDA was EUR 935 million (FY 2023: EUR 964 million). Adjusted for divestment impacts of EUR 76 million and negative currency translation effects of EUR 4 million, EBITDA increased by EUR 51 million (6% year-on-year). The increase was driven by favorable storage demand across the various markets and geographies and positive growth project contribution. Q4 2024 EBITDA was EUR 214 million (Q3 2024: EUR 233 million), the decrease was caused by negative one-off items this quarter of EUR 18 million.
Proportional growth investments in 2024 were EUR 391 million (FY 2023: EUR 299 million). Consolidated growth capex in 2024 was EUR 305 million (FY 2023: EUR 247 million) both reflecting growth investments in India, Belgium, the United States, the Netherlands and Canada.
Proportional operating capex decreased to EUR 265 million compared to EUR 290 million in FY 2023, mainly due to the divestment of the chemical distribution terminals. Operating capex, which includes sustaining and IT capex, was EUR 232 million (FY 2023: EUR 255 million), lower than the same period last year, due to divestment impacts.
Proportional operating cash flow FY 2024 increased by EUR 11 million (1% year-on-year) to EUR 806 million (FY 2023: EUR 795 million) driven mainly by strong business performance that offset divestment impacts and by lower proportional operating capex. Proportional operating cash flowper share in 2024 increased to EUR 6.69 per share (FY 2023: EUR 6.34) reflecting improved cash flow and the cancellation of shares related to the share buyback program.
Business KPI
Proportional occupancy rate at the end of FY 2024 was 93% (FY 2023: 91%) and increased compared to Q3 2024 (92%), reflecting solid demand for infrastructure services.
Financial KPIs
Proportional operating cash return FY 2024 improved to 15.1% compared to 14.0% in FY 2023. The increase was mainly due to increased proportional free cash flow and lower average capital employed due to divestments.
Total net debt : EBITDA ratio was 2.35x at the end of Q4 2024 (Q3 2024: 2.28x). Proportional leverage in Q4 2024 was 2.67x compared to 2.60x in Q3 2024.
Exceptional items in Q4 2024:
Due to a negative market outlook for the imports of clean petroleum products into Mexico, an impairment charge of EUR 58 million for the Veracruz cash-generating unit was recorded. The impairment was triggered by a decline in occupancy and related cash flows at the Veracruz terminal following a significant loss of commercial activity from a customer.
The SPEC LNG terminal is expected to benefit from increased LNG imports into Colombia which will be required in the short to medium-term to compensate for the energy deficit in the country. As a result, a reversal of impairment previously recognized in 2022 of EUR 30 million for the SPEC cash-generating was recorded.
Primary equity issue of AVTL in India resulting in a gain on partial dilution of EUR 13 million. The transaction represents a shareholding of 3.4% in AVTL. As a result of this transaction, Vopak’s shareholding in AVTL diluted from 49.0% to 47.3%. A further exceptional gain will be reported once all conditions have been fulfilled.
1 See Enclosure 3 for reconciliation to the most directly comparable subtotal or total specified by IFRS Accounting Standards 2 2024 GHG emissions in the table of 253.7 thousand MT reflects a revised operational boundary compared to 425 thousand MT of FY 2023 . Further details can be found in Enclosure 3 of the press release and the 2024 Annual Report's Sustainability notes 3 To supplement Vopak’s financial information presented in accordance with IFRS, management periodically uses certain alternative performance measures to clarify and enhance understanding of past performance and future outlook. For further information please refer to page 7 of the press release.
Vopak Analysts and Investors: Fatjona Topciu - Head of Investor Relations, e-mail: investor.relations@vopak.com
The analysts’ presentation will be given via an on-demand audio webcast on Vopak’s corporate website, starting at 10:00 AM CET on 19 February 2025.
Auditor’s involvement This press release and enclosures of the press release are based on the 2024 Financial Statements. The Financial Statements are published in accordance with statutory provisions. The auditor has issued an unqualified auditor’s report on the Financial Statements.
