Vopak shares drop over 7% following weak Q4 results

Published 19/02/2025, 12:52

Investing.com -- Shares of Vopak (AS:VOPA) fell more than 7% on Wednesday after the Dutch storage company reported weaker-than-expected fourth-quarter earnings, weighed down by one-off costs and operational challenges. 

The results, released earlier in the day, showed a year-on-year decline in earnings before interest, taxes, depreciation, and amortization, which came in below market expectations.

Vopak’s fourth-quarter EBITDA before exceptional items dropped 6% from a year ago to €214.2 million, missing consensus estimates of €232.4 million by around 8%. 

The shortfall stemmed primarily from an €18 million currency revaluation charge on receivables and financial challenges tied to the EemsEnergyTerminal LNG facility, offsetting gains from a 93% terminal occupancy rate.

The decline erased much of the stock’s year-to-date gains, which had previously outperformed some sector peers. 

While the company has been implementing share buybacks and maintaining dividend growth, these measures were not enough to counteract investor concerns over its near-term profitability.

Vopak projected stable proportional EBITDA in 2025, with a range of €1,150 million to €1,200 million. This forecast is 3% below the market consensus, reinforcing investor concerns. 

Moreover, Jefferies analysts note that Vopak’s valuation has become less compelling relative to historical levels, with shares trading at 7.3 times estimated 2025 EBITDA, compared to an average of 8.9 times historically.

Following last year’s €300 million share buyback, Vopak is proposing a 7% dividend increase to €1.60 per share, and has announced a new €100 million share buyback program. With 2.4 times EBITDA, the company’s leverage remains relatively low. 

Jefferies maintains a "hold" rating on the stock with a price target of €40 per share, implying further downside potential from current levels.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.