Vopak's quarterly profit exceeds expectations, despite Middle East risk

Vopak, a tank storage company, said that it expects the financial impact of the Middle East war to be minimal. Its core profit declined 1.8% but exceeded market expectations in the first quarter.

The Dutch company reported EBITDA of 294.6 millions euros, while the average expectation was 286 million euros, according to a consensus compiled by the company.

Vopak, a company that operates 70 terminals across more than 20 countries confirmed its outlook for 2026, including a proportional EBITDA between?1.15 and 1.20 billion euro, but noted this would be subject to "market uncertainty and currency movements".

The company based in Rotterdam said that the conflict in the Middle East had no material impact on its quarterly results. It expects to be able to absorb the financial impact through its diverse portfolio of products, locations and contracts within its annual target.

In a note sent to investors, KBC Securities stated that this diversification allows Vopak to cope with the volatile markets in which it operates.

In the first quarter of this year, the company's key utilisation metric was its proportional occupancy rate which fell slightly from last year's 92%.

In early Amsterdam trading, its shares rose by around 3%.

MIDDLE EST IMPACT

Finance chief Michiel Gilsing said that a 'prolonged and more severe Middle East conflict' would push Vopak’s core profit to the bottom of their guidance range. However, a quick?resolution might prove to be an upside.

"Nobody would have predicted two months ago that we'd be in this position as a global. In the interview, Gilsing stated that there is still uncertainty as to?how the war will develop.

Vopak operates 3 terminals in the Middle East. These terminals are located on two of the most important oil shipping routes.

(source: Reuters)