Dutch tank storage company Vopak lifted its full-year core profit guidance on Friday after it beat a quarterly forecast for the metric, driven by strong demand across its markets and increased capacity as it invests in new terminals.

Instability in the Middle East has stretched global energy supply routes, while Russia’s war on Ukraine has pushed European countries to seek alternative oil and gas supplies, increasing demand for storage space.

Vopak’s proportional earnings before interest, tax, depreciation and amortisation (EBITDA), excluding exceptional items, rose to 301.6 million euros ($327.2 million) in the second quarter, while analysts polled by the company were expecting 298 million euros on average.
The group, which operates terminals and storage facilities worldwide, expects its proportional EBITDA to come between 1.15 billion and 1.18 billion euros this year, compared with an earlier forecast of 1.14 billion to 1.18 billion euros.

The group also raised its planned capital expenditures related to growth projects to 350 million euros, from 300 million expected previously.

Vopak is seeking to expand its gas and industrial terminals to increase cash returns, and to shed less profitable assets in the oversupplied chemicals market.
Source: Reuters (Reporting by Alban Kacher in Gdansk; Editing by Milla Nissi)