By Anna Peverieri and Alban Kacher
(Reuters) -Dutch tank storage company Vopak on Thursday doubled its planned investments in gas and industry, committing another 1 billion euros ($1.1 billion) to the sectors through 2030.
Vopak, which provides storage and handling services to key energy and manufacturing end markets, said its growth strategy was supported by a market demand for infrastructure.
The Rotterdam-based company is seeking to expand its gas and industrial terminals while shedding less profitable assets in the oversupplied chemicals market.
The “considerable update” on planned growth investments is positive, as they bring attractive and visible returns, KBC analyst Kristof Samoy said in a note to investors.
“A lot of progress has been made” on Vopak’s proposed investment in Melbourne, Australia, for a floating LNG import terminal, group CFO Michiel Gilsing told Reuters.
A location has been secured and the Australian government is deciding between two competing projects. Vopak aims to provide an update in the first half of the year, Gilsing added.
Vopak also raised its operating cash return (OCR) target to more than 13%, compared with its previous guidance of above 12%.
The guidance falls below the 15.1% recorded in 2024 due to potential softening market trends and the exposure to inflation of some of its contracts, Gilsing said.
As of 2024, around half of Vopak’s contracts are fully immune to inflationary risks, a company report shows.
The OCR guidance should be interpreted as a “floor commitment” to keep them above 13% even in adverse market situations, Oddo BHF analyst Thijs Berkelder said.
The group maintained its green infrastructures capex target at 1 billion euro by 2030, while around 90% of these investments have not yet been committed, according to a document shared by the group.
Asked about the impact of the EU’s planned Clean Industrial Deal, Gilsing said it would support Vopak’s ambitions as the decarbonisation of European industry will require additional infrastructure.
($1 = 0.9192 euros)
(Reporting by Anna Peverieri and Alban Kacher in Gdansk; editing by Milla Nissi and Philippa Fletcher)
