Koninklijke Vopak N.V.: Vopak reports continued strong results in Q3 2024

The Netherlands, 30 October 2024

Vopak reports continued strong results in Q3 2024

Key highlights Q3 2024

Improve

• Net profit -including exceptional items- YTD Q3 2024 of EUR 312 million and EPS of EUR 2.56 year to date
• Proportional EBITDA -excluding exceptional items¹- increased YTD Q3 2024 by EUR 22 million to EUR 894 million driven by growth project contributions
• Our joint venture in India, has undertaken a primary equity issue of 3.4% for an equivalent amount of EUR 88 million and continues to explore options to fund growth
• Updated FY2024 proportional EBITDA outlook to EUR 1,160-1,180 million, EBITDA outlook to EUR 930-950 million

Grow

• Strengthening our position in Kandla, India with an expansion of 94,000 cbm of chemical storage
• Commissioned 560,000 cbm of industrial-connected capacity in Huizhou, China

Accelerate

• Announced next steps for our Vopak Energy Park Antwerp for the development of green methanol and ammonia storage
• Signed a MoU in Australia, to develop a common-user infrastructure including a CO2 import terminal

Q3 2024	Q2 2024	Q3 2023		In EUR millions	YTD Q3 2024	YTD Q3 2023
				IFRS Measures -including exceptional items-
325.0	325.5	352.0		Revenues	978.7	1,072.8
99.3	106.7	144.2		Net profit / (loss) attributable to holders of ordinary shares	311.8	368.3
0.83	0.88	1.15		Earnings per ordinary share (in EUR)	2.56	2.94
219.4	239.1	245.6		Cash flows from operating activities (gross)	737.3	723.4
-111.0	-153.2	-111.8		Cash flows from investing activities (including derivatives)	-375.3	-137.8
				Alternative performance measures -excluding exceptional items- 1
479.1	475.5	480.9		Proportional revenues	1,432.5	1,447.8
294.1	301.6	285.4		Proportional group operating profit / (loss) before depreciation and amortization (EBITDA)	893.5	871.7
233.3	252.1	240.5		Group operating profit / (loss) before depreciation and amortization (EBITDA)	720.4	734.7
97.5	120.8	97.3		Net profit / (loss) attributable to holders of ordinary shares	324.1	303.9
0.83	0.99	0.77		Earnings per ordinary share (in EUR)	2.67	2.42
				Business KPIs
35.2	34.7	36.4		Storage capacity end of period (in million cbm)	35.2	36.4
20.3	20.1	22.0		Proportional storage capacity end of period (in million cbm)	20.3	22.0
92%	92%	91%		Subsidiary occupancy rate	92%	91%
92%	92%	92%		Proportional occupancy rate	92%	91%
				Financial KPIs1
15.1%	16.4%	14.1%		Proportional operating cash return	16.2%	14.4%
2,574.9	2,571.6	2,698.8		Net interest-bearing debt	2,574.9	2,698.8
2.28	2.28	2.27		Total net debt: EBITDA	2.28	2.27

1 See Enclosure 3 for reconciliation to the most directly comparable subtotal or total specified by IFRS Accounting Standards

CEO statement

"We continued to execute on our improve, grow and accelerate strategy in the third quarter of this year. Demand for our infrastructure services remained healthy, reflected in a stable high proportional occupancy rate of 92%, increased proportional EBITDA and a strong operating cash return of 16.2% year to date. In India, our joint venture has successfully undertaken a primary equity issuance. We are pleased to welcome a new investor on board. The capital raised will be supporting among others our growth ambitions in India. We commissioned a new industrial terminal in Huizhou, China with a total capacity of 560,000 cbm, marking our 7th terminal in China in a new location. In gas, our growth projects are progressing well with the construction of our new LPG terminal in Canada and the expansions in LPG capacity in India. We are accelerating in new energies and sustainable feedstocks with recent developments for CO2 infrastructure in Australia and the Netherlands, and new opportunities at our Vopak Energy Park in Antwerp for green methanol and ammonia. We are well-positioned to capture opportunities which fit our improve, grow and accelerate strategy."

Financial Highlights for YTD 2024

IFRS Measures -including exceptional items-

• Revenues were EUR 979 million (YTD Q3 2023: EUR 1,073 million). Adjusted for the divestment impacts of chemical distribution terminals in Rotterdam and Savannah of EUR 129 million and negative currency translation effects of EUR 6 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. Demand for our services was healthy during the first nine months of 2024. Throughput levels in our industrial terminals were solid. We commissioned a new industrial terminal in China. Gas terminals performance showed firm throughput levels, backed by growing energy demand and energy security considerations. EemsEnergyTerminal in the Netherlands, is facing some temporary technical challenges with financial implications. The terminal remains fully operational. Addressing these challenges is the key priority with the aim to have them resolved during 2025. Amidst weak chemical markets, the impact on 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 oil distribution terminals also remained firm.
• Operating expenses consisting of personnel and other expenses were EUR 486 million in YTD Q3 2024 (YTD Q3 2023: EUR 539 million). Adjusted for positive divestment impacts of EUR 69 million and currency translation effects of EUR 2 million, expenses increased by EUR 18 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 14 million to EUR 737 million compared to YTD Q3 2023 EUR 723 million, a 2% increase year-on-year, mainly related to increased dividends received from joint ventures (EUR 70 million) offset by derivatives settlements and by lower EBITDA due to divestment impacts.
• Net profit attributable to holders of ordinary shares was EUR 312 million (YTD Q3 2023: EUR 368 million) with the reduction mainly driven by the divestment impacts. Earnings per share (EPS) YTD Q3 2024 was EUR 2.56 compared to EUR 2.94 YTD Q3 2023.
• Share buyback program of up to EUR 300 million announced on 14 February 2024, is progressing well. Since its start, around 97% of the program has been executed by October 29th, and will be finalized in the course of the last quarter of 2024, barring unforeseen circumstances. For progress on our share buyback program please visit our website.

Alternative performance measures -excluding exceptional items-²

• Proportional revenues were EUR 1,433 million, (YTD Q3 2023: EUR 1,448 million) a 9% increase after adjusting for divestment impacts of EUR 128 million and negative currency translation effects of EUR 9 million.
• Proportional EBITDA increased to EUR 894 million (YTD Q3 2023: EUR 872 million). Adjusted for divestment impacts of EUR 63 million and negative currency translation effects of EUR 7 million, proportional EBITDA increased by EUR 92 million (11% year-on-year). Compared to Q2 2024, proportional EBITDA decreased by EUR 8 million to EUR 294 million, mainly due to an unconditional success fee of EUR 7 million in Q2.
• Proportional EBITDA margin in Q3 2024 was 57.4%.
• EBITDA was EUR 720 million (YTD Q3 2023: EUR 735 million). Adjusted for divestment impacts of EUR 64 million and negative currency translation effects of EUR 5 million, EBITDA increased by EUR 54 million (8% year-on-year). The increase was driven by favorable storage demand across the various markets and geographies and positive growth project contribution. Q3 2024 EBITDA was EUR 233 million (Q2 2024: EUR 252 million), with the reduction due to certain positive one-off items in the previous quarter of EUR 17 million.
• Proportional growth investments in YTD 2024 were EUR 291 million (YTD Q3 2023: EUR 245 million).
• Growth capex year to date was EUR 244 million (YTD Q3 2023: EUR 188 million) reflecting growth investments in India, Belgium, the United States and Canada.
• Proportional operating capex decreased to EUR 168 million compared to EUR 210 million YTD Q3 2023, mainly due to the divestment of the chemical distribution terminals.
• Operating capex, which includes sustaining and IT capex, was EUR 148 million (YTD Q3 2023: EUR 186 million), lower than the same period last year, due to divestment impacts.
• Proportional operating cash flow YTD 2024 increased by EUR 33 million (5% year-on-year) to EUR 648 million (YTD Q3 2023: EUR 615 million) driven mainly by lower proportional operating capex and strong business performance notwithstanding divestment impacts.
• Proportional operating cash flow per share in YTD 2024 increased to EUR 5.33 per share from EUR 4.91 YTD Q3 2023.

Business KPIs

• Proportional occupancy rate at Q3 2024 was 92% and remained stable compared to Q2 2024 (92%), reflecting solid demand for infrastructure services.

Financial KPIs

• Proportional operating cash return in YTD Q3 2024 improved to 16.2% compared to 14.4% in YTD Q3 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 remained at 2.28x at the end of Q3 2024 (Q2 2024: 2.28x). Our ambition is to keep total net debt to EBITDA in the range of around 2.50-3.00x.
• Proportional leverage in Q3 2024 was 2.60x compared to 2.79x in Q3 2023.

Exceptional items in Q3 2024 consist of:

• True up of divestment gain on German LNG Terminal GmbH following receipt of notification that shareholders of the project took final investment decision (FID) resulting in proceeds of EUR 8.9 million reported in the Other operating income line.
• Write down of business development costs of EUR 7.1 million substantially reported in the Impairments line.

For more information please contact:

Vopak Press: Liesbeth Lans - Manager External Communication, e-mail: [e-mail]
Vopak Analysts and Investors: Fatjona Topciu - Head of Investor Relations, e-mail: [e-mail]

The analysts' presentation will be given via an on-demand audio webcast on Vopak's corporate website, starting at 09:30 AM CET on 30 October 2024.

This press release contains inside information as meant in clause 7 of the Market Abuse Regulation. The content of this report has not been audited or reviewed by an external auditor.

2. 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.