Vopak starts review of three Dutch terminals, sees higher 2023 profit

By Diana Mandia

(Reuters) - Dutch tank storage company Vopak has started a review of three chemical terminals in Rotterdam that could lead to full or partial divestments, the company said on Wednesday.

The move is in line with Vopak's plans to increase industrial and gas storage as it gradually phases out oil and chemicals.

The review is related to the company's Botlek, TTR and Chemiehaven terminals in the port of Rotterdam, Europe's largest refining centre. Vopak did not provide any further details.

"We need to see how the market reacts and what the appetite is for these assets," Vopak Chief Financial Officer Michiel Gilsing told Reuters.

Vopak's operating profit before depreciation and amortisation from its new energy and LNG activities amounted to 48.2 million euros ($51.7 million) in 2022, up 20.8% from a year earlier.

The drop in Russian oil and gas supplies following sanctions imposed on Moscow has prompted Western economies to try to replace them with flows mostly from Qatar and the United States, boosting the storage business.

"The products are now coming from longer distances, from the U.S., Middle East ... that obviously puts a storage company in a good position to rent out its tanks," Gilsing said.

Vopak expects 2023 earnings before interest, taxes, depreciation and amortisation to increase to between 910 million euros and 950 million euros, compared with 887.2 million euros last year.

($1 = 0.9324 euros)

(Reporting by Diana Mandiá in Gdansk; Editing by Milla Nissi and Shounak Dasgupta)