“The numbers came in a touch light and we believe guidance for 2011 will not inspire consensus estimates to move up. In addition, earnings growth will be back-end loaded. Consequently, we are slightly negative on today’s results and outlook,” KBC analyst Michael Roeg wrote in a note.

Vopak’s cash flows have been impervious to the volatility seen in fuel markets because the Dutch oil and chemicals storage operator rents out space in its terminals, so revenue is tied to capacity payments rather than energy and commodity prices.

But its profits have been hurt by its drive to diversify into biofuel and vegetable oils.

Vopak said market participants had reviewed their positions because of regulatory uncertainty relating to biofuels in Europe and North America.

As a result, Vopak’s occupancy rate slipped to 93 percent in 2010 from 94 percent in 2009. Vopak expanded its capacity in 2010 by 0.5 million cubic meters (cbm) to 28.8 million cbm and is adding 4.5 million cbm of capacity in 2011 and 2012.

“Based on our growth strategy, Vopak is well positioned to realize a group operating profit before depreciation and amortization (EBITDA) between 725-800 million euros in 2013,” Chief Executive Eelco Hoekstra said in a statement.

Vopak had said it could hit its 2012 target for expected earnings before interest, tax, depreciation and amortization (EBITDA) of between 625 million and 700 million euros as much as a year earlier.

But on Friday it said that because capacity additions would weigh on its first-half 2011 results, it expected EBITDA to grow by around 5 percent in 2011, which would put it at the bottom end of its guided 625 million to 700 million euro range.

Vopak Chief Financial Officer Jack de Kreij said most of the new capacity coming onstream in 2011 and 2012 had already been contracted out and that he had no regrets over the company’s move beyond oils and chemicals into biofuel products.

“We have never made huge investments in new tank capacity for biofuels, we freed up tank capacity in terminals,” De Kreij told Reuters in a telephone interview, adding Vopak would not be cutting biofuel storage capacity for now in major hub locations.

Annual earnings before interest and taxes (EBIT) rose 13 percent to 442 million euros on revenues of 1.106 billion euros. Analysts in a Reuters poll expected on average EBIT of 449 million euros on revenues of 1.102 billion euros.

Biofuels, including vegetable oils, make up 10 percent of Vopak’s EBIT, De Kreij said.

Vopak’s business benefits from imbalances between producing and consuming regions while its chemical storage business relies on a strong output in the chemical industry. It operates 80 terminals in 30 countries.

The company said it expected the market for storage and handling of oil products to remain robust and that demand for its chemicals portfolio had shown further signs of recovery.

A dividend of 0.70 euros per ordinary share, an increase of 12 percent, payable in cash, would be proposed, Vopak said.