Royal Vopak due diligence report

Hatchworks has conducted due diligence on Royal Vopak, a leading independent tank storage company of oil products, liquid chemicals, gasses, biofuels and vegetable oils. Royal Vopak is headquartered in Rotterdam and listed on the Euronext Amsterdam stock exchange under the symbol ‘’VPK’’.

Financials —Royal Vopak

Royal Vopak’s current market cap is €6.1B and stock price is around €49.

With a predicted net-income growth of 6.5% for 2020E and 2021E, and a net income estimate for 2021E of in excess of €405M, this points to a P/E ratio of 16.2x.

However, for year 2020E and 2019E, they expect to have a decrease of -10% in their net-income growth.

The revenue/sales forecast is €1.28B for 2020E, indicating an EV/Sales ratio of 6.45x.

In terms of profitability, a strong operating margin of 47.2% is predicted for 2020E. This compares to a small 12.8% operating margin for a competitor, Energy Transfer LP (ET).

Royal Vopak (VPK) offers a relatively low, but stable yield, namely 2.68% for year 2020E. Competitor Enbridge Inc. (ENB) offers a higher yield of 6.64% for 2020E.

Vopak’s latest announcements include their plans to expand Terminal Linkeroever in Antwerp (Belgium) by 50,000 cbm, and Terminal Altamira in Mexico by 40,000 cbm, both for chemical products. They have also revealed their intentions to develop a joint venture industrial terminal to provide storage and handling services for the chemical manufacturing plants in Qinzhou, southwest China, with their partners Shanghai Huayi Group Investment Co and Guangxi Qinzhou Linhai Industrial Investment Co.

It’s also worth noting that Royal Vopak has long term leases with port authorities in many other countries, demonstrating the dominant role they play in this market space. It has a strong operating margin, modest debt position, and great fundamentals, but valuation wise a high risk entry. Therefore, Hatchworks will keep Royal Vopak on its radar and will not invest at this stage.

The Hatchscore is 4.4 out of 10. Full details can be found on Hatchnet:

What is Royal Vopak?

Royal Vopak is the world’s leading independent tank storage company. They operate a global network of terminals located at strategic locations. With a strong focus on sustainability, including safety, they ensure safe, efficient and clean storage and handling of bulk liquid products and gasses for their customers. By doing so, they enable the delivery of products that are vital to our economy and daily lives, ranging from oil, chemicals, gasses and LNG to biofuels and vegetable oils.

Top Institutional Holders:

  • HAL Investments BV.
  • Invesco Advisers, Inc.
  • Maple-Brown Abbott Ltd.

Advisors and Bookrunners:

  • DBS Bank.
  • JP Morgan.

What are the risks?

  • Market volatility resulting in changing product flows with, in some circumstances, unprecedented speed of market change.
  • Fluctuating movements in (crude) oil and gas market pricing have consequences for customers putting pressure on the value chain.
  • Increasing competition, which can cause pressure on their occupancy rates, pricing and contract durations.


  • Enbridge Inc. (ENB)
  • Energy Transfer LP. (ET)
  • Enterprise Products Partners L.P. (EPD)
  • Rubis. (RUI)

Management team:

  • Eelco Hoekstra: CEO.
  • Gerard Paulides: CFO.
  • Frits Eulderink: COO.

The Hatchwork Team

The forecast figures are based on the data of Market Screener,,, and not from Hatchworks:

Legal Disclaimer — This report summary has been generated as a result of Hatchworks’ proprietary company vetting and filtering system. The level of due diligence conducted on investible assets conducted ranges from mediocre to significant, the latter being the case where Hatchworks has explicitly taken strategic positions in. By no means is the information in this file to be relied on as investment advice; this includes Hatchworks’ algorithmic composite score known as ‘Hatchscore’. Hatchworks has not received any compensation for this research. For more information you can reach us at This report is not for distribution in the United States of America. It is closed to U.S citizens. If you are a U.S. citizen, you should delete this report or return to sender.




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