Vopak VOPA.AS reported forecast-beating quarterly revenue and core profit on Wednesday, although its net income fell short of estimates after the Dutch tank storage company recorded asset impairment charges.

Oil prices have been extremely volatile amid a tug-of-war between supply fears on Western sanctions on Russia for its “special military operation” in Ukraine and worries that inflation could weaken the global economy.

The Rotterdam-based group said the direct impact of the conflict was assessed to be mainly in Vopak’s Europoort terminal, for which it posted impairment charges of 240 million euros ($243.62 million) as it is set to reduce its capacity by 2030 and use the available land for new energy investments.

Vopak, which operates hubs in Singapore and Fujairah among others, has a capital outlay related to oil storage assets that accounts for roughly a third of its portfolio.

Last month, the group forecast the share of proportional capital employed in industrial and gas to increase further and that of oil and chemical to gradually decline by 2025.

“With a growing world population and at the same time the need for decarbonization, we foresee a rising demand for our independent infrastructure solutions,” Chief Executive Officer Dick Richelle said in an earnings statement.
The Organization of the Petroleum Exporting Countries (OPEC), Russia and allies, has in the past blamed surging prices on crude consuming nations’ failure to ensure adequate fossil fuels investments as they shift to greener energy.

The company reported a net profit of 53.5 million euros in the second quarter, below analysts’ average estimate of 75.3 million euros.

Vopak also forecast its full-year core earnings to land between 830 million and 850 million euros on continued volatility in the energy market, inflation woes and utility prices pressures.
Source: Reuters (Reporting by Juliette Portala and Dina Kartit ; Editing by Muralikumar Anantharaman and Sherry Jacob-Phillips)