Vopak raises outlook as growth projects boost confidence, shares rise

By Hugo Lhomedet and Jerome Terroy

July 30 (Reuters) - Dutch tank storage operator Vopak raised its 2026 outlook on Thursday, citing strong operational performance and contributions from recently completed projects, sending its shares up 4.4% in early Amsterdam trading.

The company lifted its proportional EBITDA forecast to 1.18 billion-1.22 billion euros ($1.35 billion-$1.40 billion) from 1.15 billion-1.20 billion euros previously and increased its proportional operating free cash flow target to around 820 million euros.

First-half proportional EBITDA fell to 600.3 million euros from 615.3 million euros a year earlier, while proportional operating free cash flow reached 444 million euros. Its proportional occupancy rate, a key industry metric, stood at 91%.

Vopak also announced a 0.72 euro interim dividend and said it would move to semi-annual dividend payments, citing the predictable nature of its cash generation.

Chief Financial Officer Michiel Gilsing said the higher outlook reflected strong performance in the Netherlands and South Africa, contributions from recently completed projects and additional capacity scheduled to come on stream later this year.

"The largest one is a gate terminal expansion and LNG import terminal in Rotterdam, which will be commissioned by the end of September," Gilsing said.

He added that a major project in Canada was expected to start contributing to earnings in 2027, while recently approved battery-storage projects in the Netherlands should begin contributing from 2028.

Vopak also operates oil-storage terminals in Fujairah, a major UAE hub for crude and fuel flows bypassing the Strait of Hormuz, where a fire caused by debris from an intercepted Iranian drone temporarily disrupted operations earlier this year.

"So far, the impact of the Middle East conflict has been rather limited," Gilsing told Reuters, adding that the effect amounted to less than 5 million euros.

($1 = 0.8737 euros)

(Reporting by Hugo Lhomedet and Jerome Terroy; Editing by Milla Nissi-Prussak)