By: ICN Bureau
Last updated : March 17, 2025 8:30 am
Vopak increases its ambition to grow in gas and industrial infrastructure by an additional € 1 billion reaching a total of € 2 billion
Royal Vopak reconfirms its strategic priorities to improve financial and sustainability performance of its portfolio, to grow in industrial and gas terminals and to accelerate towards energy transition infrastructure at its Capital Markets Day.
Dick Richelle, CEO of Royal Vopak: Building on our proven track record of strategic execution, we have delivered an improved cash return and committed € 1 billion capex target to grow in industrial and gas terminals, reaching our target ahead of schedule. This positions Vopak with confidence to capture additional growth opportunities in gas and industrial infrastructure as well as infrastructure for the energy transition. Our resilient business model, driven by our 'Improve, Grow, Accelerate' strategy, provides a strong foundation for future growth. This is reflected by the increased operating cash return target of above 13%, which demonstrates our financial discipline and cash focus.
“We see market opportunities to invest an additional € 1 billion in gas and industrial terminals, and we are reconfirming our ambition to invest € 1 billion to accelerate towards energy transition infrastructure by 2030. We remain dedicated to delivering sustainable and increasing shareholder returns via a progressive dividend distribution and will evaluate a share buyback program on a yearly basis.”
Vopak confirms its ambition to continue to focus on improving the financial and sustainability performance of the portfolio underpinned by an increase of the operating cash return target to above 13% compared to previous ambition of above 12% and initial ambition of above 10% as announced in June 2022. Operating cash return target factors in volatility in different market conditions.
This is supported by the strong strategy execution that the company has had over the last 3 years. Operating cash return is defined as proportional operating cash flow over proportional capital employed and reflects the increased importance of free cash flow and joint ventures in our portfolio.
Vopak has achieved its target to grow its gas and industrial footprint by committing € 1 billion by 2030, ahead of schedule. The majority of these investments were in gas infrastructure to address energy security and affordability needs, a substantial portion has also been committed to growth markets like India and China.
Given the positive outlook and market demand for infrastructure, Vopak has the ambition to invest an additional € 1 billion by 2030 in projects that will be underpinned by customer commitments and will provide attractive returns upon commissioning. The total investments in gas and industrial infrastructure by 2030 are expected to be around € 2 billion, including the already committed EUR 1 billion. These investments will further support long-term and steady cash flow generation
Vopak's ambition to invest € 1 billion by 2030 towards energy transition infrastructure remains unchanged. Vopak will continue to have a disciplined and selective approach in these investments with a similar risk return profile as the current business.
Vopak will focus on infrastructure solutions for low-carbon fuels and sustainable feedstocks, ammonia as a hydrogen carrier, liquid CO2, and battery energy storage. Part of Vopak’s ambition to invest in energy transition infrastructure is to repurpose a portion of the existing oil capacity in the hub locations for low carbon fuels and feedstocks.