Vopak ready to hand over

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STRATEGY • VOPAK WILL BE LOOKING TO CONTINUE ON ITS STRATEGIC PLAN UNDER NEW LEADERSHIP NEXT YEAR, AS CURRENT CEO EELCO HOEKSTRA IS STEPPING DOWN

ROYAL VOPAK, WHICH operates the world’s largest network of independent bulk liquids terminals, is entering a significant period of change as it continues to work through its strategic plan with a focus on allocating investment towards industrial, chemicals, gas and new energies infrastructure.

Another big change coming soon is a new CEO, after Eelco Hoekstra, who has been chairman of the executive board and CEO for 11 years, announced he is to step down at the end of this year to become a member of the executive board of the major Dutch trading company SHV. Vopak’s supervisory board accepted the resignation, saying it “respects his decision and congratulates him with his new role”.

The supervisory board has already announced that Dick Richelle will succeed Hoekstra; Richelle joined Vopak in 1995 as a management trainee and has held a variety of management roles in Latin America and Europe, most recently heading the company’s global commercial and business development activities.

“We are very grateful for Eelco’s long-term contribution to Royal Vopak during his 20-year career at the company and most specifically his last 11 years as CEO,” says Ben Noteboom, chairman of the supervisory board. “Under Eelco’s leadership, the foundation of the company has strengthened, guiding Royal Vopak to leading global positions. We all wish Eelco the very best for his future. Dick has shown strong leadership and people skills in his current and former roles. His extensive experience in nearly all geographies in a variety of functions at Royal Vopak will enable him to be an effective CEO leading Royal Vopak in the coming periods.”

PURSUE THE PLAN Meanwhile, as part of its new focus on specific activities, Vopak has announced a strategic review of its terminals in Australia and says it is “investigating options” that may include continued operations or divestment. No further details are being disclosed at present but updates will be announced once decisions are taken. Vopak notes that its current strategy means that any new investment in oil infrastructure is likely to be reduced and be targeted on existing hub facilities. Vopak has two terminals in Australia, one in Sydney and one in Darwin, both operating as petroleum import and distribution facilities.

DICK RICHELLE IS TAKING OVER AS CEO OF ROYAL VOPAK

AT A TIME OF SIGNIFICANT CHANGE IN THE SECTOR AND

Also reflecting Vopak’s strategy to invest in industrial terminals, it has now opened its new terminal on the US Gulf Coast in Corpus Christi, Texas. The 144,000-m3 facility has been built to serve the world-scale Gulf Coast Growth Ventures (GCGV) polymer plant in San Patricio County, a joint venture between ExxonMobil and Sabic, under a 20-year commercial agreement and is wholly owned by Vopak. The terminal has pipeline links to the new petrochemical plant.

“We are very excited to have successfully and timely delivered this new industrial terminal to support GCGV in the US This new terminal fits well into our growth strategy for industrial terminals,” says Hoekstra. “We are proud of our expertise and long track record of storing vital products. We have high standards on safety and environmental care and we are looking forward to being part of the Coastal Bend community.”

THIRD QUARTER ACTIVITY Among other activity during the third quarter, Vopak added 57,000 m3 of new tankage at the Likeroever site in Antwerp and the Botlek terminal in Rotterdam, and started ammonia operations at the Vopak Moda Houston joint venture terminal. Vopak also took a strategic decision to discontinue its active participation in the German LNG project, booking an exceptional loss of €11.1m, though it says it remains optimistic in other LNG project in which it is involved.

Vopak achieved revenues of €309.5m in the third quarter, a 4.2 per cent improvement over last year, although net profit (including exceptional items) dropped from €79.5m to €71.6m. Tank occupancy was down, from 92 per cent to 88 per cent, for the period as a whole. The company says it now expects its investment in growth projects this year to come in at around €275m, below the forecast €300m to €350m range, assuming that the planned Aegis Vopak transaction in India closes early next year. On the other hand, capital investment in IT systems this year is expected to be at the high end of the indicated range, at close to €50m, and Vopak says that some 60 per cent of its joint ventures have committed to the new in-house terminal management system, which is ahead of plan. www.vopak.com

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