April 22 (Reuters) - Dutch tank storage company Vopak reported a 1.8% drop in its first-quarter core profit on Wednesday, as negative currency translation effects and lower joint venture results
Vopak shrugs off Middle East risks as quarterly profit beats expectations
Vopak's Financial Performance and Resilience Amid Middle East Conflict
By Hugo Lhomedet and Jerome Terroy
Quarterly Earnings Overview
April 22 (Reuters) - Tank storage firm Vopak said on Wednesday it expected the financial impact from the war in the Middle East to be limited, after its core profit fell 1.8% in the first quarter but beat market expectations.
The Dutch company reported proportional earnings before interest, taxes, depreciation and amortisation (EBITDA) of 294.6 million euros ($345.9 million), while analysts in a company-compiled consensus were expecting 286 million euros on average.
2026 Outlook and Market Uncertainties
Vopak, which operates over 70 terminals in more than 20 countries, confirmed its 2026 outlook, including proportional EBITDA of 1.15 billion to 1.20 billion euros, but said this was subject to market uncertainties and currency movements.
Diversification as a Key Strength
The Rotterdam-based company said the quarterly results were not materially impacted by the Middle East conflict and it expects its diversified portfolio of locations, products and contracts to absorb any financial impact within its annual targets.
This diversification helps Vopak cope with the still volatile markets it operates in, brokerage KBC Securities said in a note to investors.
Operational Metrics and Market Response
The company's proportional occupancy rate, its key utilisation metric, was 91% in the first quarter, slightly down from last year's 92%.
Its shares gained around 3% in early Amsterdam trading.
Middle East Impact and Strategic Considerations
Potential Scenarios for Conflict Resolution
MIDDLE EAST IMPACT
A prolonged and more severe Middle East conflict would push Vopak's core profit towards the bottom of its guidance range, while a swift resolution could prove an upside, finance chief Michiel Gilsing told Reuters.
Executive Insights on Uncertainty
"Nobody could have predicted that we would be in this situation two months ago as a world. So there's still a lot of uncertainty about how the conflict will evolve," Gilsing said in the interview.
Vopak's Middle East Operations
Vopak operates three terminals across the Middle East, straddling two of the world's most critical oil shipping lanes.
($1 = 0.8517 euros)
(Reporting by Hugo Lhomedet and Jerome Terroy in Gdansk; Editing by Milla Nissi-Prussak)
