Vopak lowers its profit forecast for 2024 on the basis of sustained demand

Vopak, a Dutch tank storage company, raised its core profit forecast for 2024 on Wednesday following the release of its third-quarter results that were slightly better than analysts' expectations.

The Rotterdam based company now expects earnings before interest, taxes, depreciation, and amortization (EBITDA), in 2024, to be between 930 and 950 millions euros, up from a previous guideline of 920 and 950 millions euros.

Vopak raised its EBITDA targets for 2024 in July for the second consecutive year, citing strong demand on its markets as well as expanded terminal capacity which boosted its second-quarter results.

The instability in the Middle East has stretched energy routes around the world, and Russia's war against Ukraine has forced European countries to look for alternative sources of oil and gas, increasing storage demand.

Vopak is looking to expand their gas and industrial terminals in order to increase cash flow and shed less profitable assets on the oversupplied chemical market.

According to ING, the consensus figures for the third-quarter EBITDA were 233.3 million Euros, while analysts had expected 231 millions Euros.

(source: Reuters)