Dutch oil storage company Vopak (VOPA.AS) on Wednesday reported second-quarter net profit that missed market expectations, after taking an impairment related to its terminal in Panama, sending its shares down nearly 8%.
The group, which operates storage terminals around the world, reported net profit of 76.1 million euros ($89.86 million) in the three months to June, missing analysts’ average estimate by 8%.
The company took an impairment of about 70 million euros for its Bahia las Minas terminal in Panama, which Vopak operates for Chevron (CVX.N). This followed a 43 million write-off last year.
“If you compare both EBIT numbers they are actually pretty good, but then you see an impairment of almost 70 million that slashes net profit,” Juri Zanieri from asset manager Kempen said.
Vopak’s shares were down 7.9% by 0913 GMT, set for their worst day in about four years.
The company, which operates 72 terminals in more than 20 countries, had an occupancy rate of 88% at the end of June, down from 90% a year ago, reflecting lower occupancy in Fujairah, Indonesia and Panama.
“The tank storage industry … continues to face supply tightness leading to a lower requirement for excess storage of products,” Vopak’s Chief Executive Eelco Hoekstra said.
It is a soft market as a result of a tight supply and relatively soft demand, Finance Chief Gerard Paulides told Reuters.
Vopak, which made about 35% of its 2020 revenue from oil terminals, benefited from soaring demand for oil storage last year as buyers struggled to find space for surplus crude during a global economic slump triggered by the COVID-19 pandemic.
The company, which has been reducing the share of oil storage in its portfolio in favour of chemicals, industrial terminals and gas, expects 2023 core profit contribution from new projects in the range of 110 million euros to 125 million euros.
Vopak, which does not provide guidance for core and net profit, said for next year its investment in growth areas, such as new business development and feasibility studies in new energies, including hydrogen, would be in a similar range to 2021.
