AMSTERDAM: Dutch oil and chemical storage company Vopak said it would accelerate its investments in the remainder of the year to expand its portfolio of terminals.
The group, which operates tank terminals around the world, now expects its capital expenditure to be in the range of €500 million to €600 million ($591 million to $709 million) this year, but it eyes fewer investments in 2021, reducing the range to between €300 million to €350 million.
Vopak has benefited from soaring demand for oil storage as buyers struggle to find space for surplus crude during a global economic slump triggered by the COVID-19 pandemic.
This was partly offset in the second-quarter by delays in some of the group’s projects as construction work was restricted.
Vopak said there had been no significant disruptions to business continuity due to COVID-19 in the third quarter, with all of its 66 terminals operational.
It said its occupancy rate at the end of the quarter was 90 percent, up from 84 percent a year ago, reflecting an improvement of oil terminals and continued strong performance of its joint venture gas and industrial terminals.
Vopak reported earnings before interest, taxes, depreciation and amortization (EBITDA) at €200.1 million in the third quarter, slightly down from €202.4 million in the same period a year ago, due to negative currency effects.
The group, which has been reducing the share of oil storage in its portfolio to allocate more of its capital to chemicals, industrial terminals and gas, said it would expand its Alemoa terminal in Brazil for chemical products.
It had previously forecast investments in new capacity of up to €500 million this year and in the €300 million to €500 million range in 2021.