Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — Investor Day (July 2006)
24 slides from Royal Vopak NV's investor day presentation, Jul 4, 2006
Slide 1: Welcome
Welcome Rotterdam July 4, 2006
Slide 2: Oil EMEA Growth developments
Oil EMEA Growth developments July 4, 2006
Slide 3: Contents
Contents • Vopak Oil EMEA • Oil Market Developments • Regional tank storage requirements/opportunities • Excellence and Growth Projects Vopak Oil EMEA 3
Slide 4: Vopak Oil EMEA
Vopak Oil EMEA • One of the five divisions within Vopak • Largest independent supplier of tank storage services for crude oil and mineral products in Europe and the Middle East • Largest ship agent in Amsterdam – Rotterdam -- Antwerp 2005: € 9 mln increase in EBIT 4
Slide 5: Contents
Contents • Vopak Oil EMEA • Oil Market Developments • Regional tank storage requirements/opportunities • Excellence and Growth Projects Vopak Oil EMEA 5
Slide 6: Market Developments (1)
Market Developments (1) • Growing geographical imbalances of Petroleum Products • Product differentiation – Increased requirement for low sulphur levels in products like Gasoline, Diesel and Fuel Oil – Introduction of “new” products like Bio Fuels (Ethanol, Biodiesel etc.) and GTL based products …le
Slide 7: Market Developments (2) - Hubs
Market Developments (2) - Hubs • Growing imbalances Æ 4-Hubs at Vopak Oil Rotterdam: – Jet Fuel: Vopak Oil Rotterdam – Fuel Oil: Vopak Oil Rotterdam – Nafta: Vopak Oil Rotterdam – Independent Crude storage: Vopak Oil Rotterdam Vopak Oil Rotterdam is focused at reinforcing and accelerating growth of
Slide 8: Market Developments (3)
Market Developments (3) • Strong believe by market parties that: – Crude and product prices will stay at high levels – Product imbalances will further increase – Refineries in Europe will not embark on a large scale investment projects – Access to tank storage is key for trading • This leads to cust
Slide 9: Market developments - Crude
Market developments - Crude • Contango market since 2004 • Price volatility • Sweet Sour spread …lead to an increased need for crude oil storage and blending 9
Slide 10: Market Developments - Fuel Oil (1)
Market Developments - Fuel Oil (1) • The Fuel Oil market is characterized by the following trends: – Increased interregional trade – Growing bunker markets – Consolidation of volumes – Environmental awareness and legislation – Need for product segregation – Synergy between bunker and transshipment m
Slide 11: Market Developments - Fuel Oil (2)
Market Developments - Fuel Oil (2) Example Fuel Oil: Well positioned in the global supply chain 1. Export from Russia, Vopak 2. Terminal Estonia Consolidation Vopak Europoort 4. Distribution in the region 3. Receipt Vopak Singapore 11
Slide 12: Market Developments – Gasoil/Diesel
Market Developments – Gasoil/Diesel • Growth of middle distillates demand in many regions while Middle East strengthens its role as supplier – Demand for diesel increases in NWE due to dieselification – Demand for heating oil is declining in NWE due to use of natural gas • Product differentiation: –
Slide 13: Market Developments - Jet Fuel
Market Developments - Jet Fuel • Increase of geographic imbalances in the jet fuel market: – Increase in jet fuel demand for air travel leads to a deficit in North West Europe – Reliance on Middle Eastern imports is likely to continue • Need to secure the jet fuel supply chain North West Europe Jet/
Slide 14: Market Developments - Gasoline
Market Developments - Gasoline • Gasoline exports from Europe (surplus) to the US (deficit) are increasing • In the longer term the US is expected to become more balanced, however the emerging Asian deficit will then take up the European gasoline exports • Tightening product specifications USA NWE A
Slide 15: Contents
Contents • Vopak Oil EMEA • Oil Market Developments • Regional tank storage requirements/opportunities • Excellence and Growth Projects Vopak Oil EMEA 15
Slide 16: Regional tank storage requirements
Regional tank storage requirements • Increased need for capacity at hub terminal locations • Increased need for blending of products/components • Increased need for product segregation • Increased need for storage and handling of biofuels and GTL products 16
Slide 17: Contents
Contents • Vopak Oil EMEA • Oil Market Developments • Regional tank storage requirements/opportunities • Excellence and Growth Projects Vopak Oil EMEA 17
Slide 18: Vopak's strategy
Vopak’s strategy Value Driver Vopak’s Response Increasing imbalances • Offering capacity at hub locations: – Expansion of existing strategic locations – Greenfield operations Economic growth resulting in • Greenfield operations more demand • Industrial Terminals Diversification of products • Offerin
Slide 19: Optimization and Growth Vopak Oil EMEA
Optimization and Growth Vopak Oil EMEA Optimise Expansion M&A New terminal New existing existing locations concepts capacity terminals (planned) (planned) Rotterdam; Rotterdam; Amsterdam; Biodiesel in Rotterdam Gävle; Fujairah; 19
Slide 20: Vopak Oil EMEA Growth projects
Vopak Oil EMEA Growth projects • The terminal network of Vopak is already well positioned and will further expand to meet the growing demand by the Petroleum Industry • Fuel Oil: – Rotterdam – additional capacity (2007) – Fujairah – additional capacity (2007) • Clean Petroleum Products: – Rotterdam
Slide 21: Expansion - Rotterdam
Expansion - Rotterdam Expansion comprises: • 240,000 cbm new capacity for the storage of fuel oil • New fingerpier with 4 extra berths • Operational mid 2007 • 300,000 cbm new capacity for the storage of jet fuel (200,000 new building and 100,000 conversion) This investment is anticipated to increas
Slide 22: Expansion - Fujairah
Expansion - Fujairah • 8 new tanks with a total capacity of 360,000 cbm • 2 extra berths • Planning: Q3 2007 World’s second bunker port 22
Slide 23: New-build project – Amsterdam (planned)
New-build project – Amsterdam (planned) Phase 1 • Total 720.000 CBM, 26 tanks • 2 Jetties – 2 sea vessels – 4 barges or 1 coaster & 3 barges Phase 1 Phase 2 • Total 1.100.000 CBM, 39 tanks • 2 Jetties: – 2 sea vessels – 1 sea vessel & 2 barges or 1 sea vessel & 1 barge & 1 coaster – 1 Quay for 2 bar
Slide 24: Expansion - Gävle
Expansion - Gävle • In Sweden, Vopak is currently engaged in an investment program at its Gävle terminal for a conglomerate of jet fuel suppliers to supply Stockholm International Airport. – Conversion of 108.000 cbm dedicated for jet fuel 24