Vopak ups outlook as it beats estimates

Amsterdam: Dutch oil and chemicals storage firm Vopak's operating profit rose 21 per cent in the first half, driven by oil product storage, and it raised its outlook for 2010 and beyond.

Vopak shares had risen 6.31 per cent to 31.53 euros by 0821 GMT, and were the biggest gainer in the Amsterdam midcap index, which was up 0.81 per cent.

"Another good set of results, almost across the board," said Andre Mulder at Kepler Capital Markets, adding that he would keep his "buy" recommendation for the shares.

The company said demand for oil product storage would stay strong, even as it dealt with uncertainty about chemical storage demand, bolstering its results and keeping its tanks more than 90 per cent full.

Earnings before interest and taxes (Ebit), excluding exceptional items, rose 21 per cent to 223 million euros (Dh1 billion) in the first half, beating the most optimistic forecast of 221 million euros in a Reuters poll.

The world's largest independent tank terminal operator said it expected earnings before interest, tax, depreciation and amortisation (Ebitda) to be at least 585 million euros in 2010, up from a previous forecast of at least 560 million euros.

"We experienced a robust demand for storage of oil products, based on the worldwide imbalances between production and consumption and the increasing number of product specifications," CEO John Paul Broeders said.

Earlier this week, Broeders said he would resign as of March 2011 and would become the chief executive of the holding company for one of the Netherlands' richest families.

Vopak, which stores and handles liquid and gaseous products, said it could hit its 2012 Ebitda target of 625-700 million euros earnings up to a year earlier.

Occupancy rates

The company said it expected occupancy rates of its terminals, which dropped during the first six months to 93 per cent from 95 per cent last year, to be between 90-95 percent until 2012.