Rabobank deems Vopak’s EUR-1bn EBITDA target for 2016 too ambitious

Dec 11, 2013 - Dutch oil storage firm Royal Vopak's (AMS:VPK) target for earnings before interest, tax, depreciation and amortisation (EBITDA), excluding one-offs, of EUR 1 billion (USD 1.4bn) by 2016 was too ambitious, Rabobank said Tuesday.

The bank reacted to Vopak’s warning that the guidance was unlikely to be met.

Rabobank itself guides for EBITDA, excluding exceptional items, of EUR 880 million by 2016. Vopak said it would provide more details on the profit target in the second half of 2014.

The oil storage firm expects EBITDA to come in at EUR 750 million in 2013. Yet, it will not be able to reach next year the record EUR-768-million EBITDA from 2012. This announcement is disappointing, according to Rabobank, which had projected a result of EUR 789 million in 2014.

The bank rated Vopak's share a “hold”.

SNS Securities said the profit warning for 2016 was not surprising. The broker, which has a "buy" stance on the stock, had forecast an EBITDA, excluding one-offs, of EUR 876 million.

KBC was not surprised either as the target of EUR 1 billion was too challenging. It also rated the share a "buy".

ING estimated Vopak’s EBITDA at EUR 807 million and issued a “hold” rating.

Vopak shares closed Tuesday trading 2.12% down to EUR 41.74 on Euronext Amsterdam.

(EUR 1.0 = USD 1.377)

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