Koninklijke Vopak Uns/Adr

Hello and welcome to the Royal Volpac 3rd Quarter 2025 update. Throughout the call, all participants will be in listen-only mode. And afterwards, there will be a question and answer session. This call is being recorded. I'm pleased to present Fathiona Topshu, Head of Investor Relations. Please go ahead with your meeting.

Good morning, everyone, and welcome to our Q3 2025 results analysis poll. My name is Tatyana Topcu, head of IR. Our CEO, Shuzik Richel, and CFO, Neil Nielsen, will guide you through our latest results. We will refer to the Q3 2025 analysis presentation and follow on screen and download from our website. After the presentation, we will have the opportunity for Q&A. A replay of the webcast will be made available on our website as well. Before we start, I would like to refer to the disclaimer content of the forward-looking statement, which you are familiar with. I would like to remind you that we may make forward-looking statements during the presentation, which involves certain risks and uncertainties. Accordingly, this is applicable to the entire call, including the answers provided to questions during the Q&A. And with that, I would like to hand over the call to Vic.

Thank you very much, Fatjana, and good morning to all of you. Thanks for joining us in the call this morning. Let's start with the key priorities of our strategy framework towards 2030. We continue to focus on improving the performance of our existing portfolio. This includes both our sustainability efforts and our financial results, with an operating cash return target for the portfolio of above 13% throughout the cycle. As part of our grow and accelerate strategic pillars, we continue to invest in attractive opportunities in the markets. with a total proportional investment ambition of €4 billion by 2030. Our improve, grow, accelerate strategy underpins our well-diversified and resilient portfolio and provides a solid foundation to continuing deliver value to all our stakeholders. Moving to the key highlights for the first nine months of this year. Let's first start on the improve side. Year-to-date, demand for our services remained healthy across the entire portfolio, and that resulted in a proportional occupancy rate of 91%, with continued high satisfaction from our customers. We reported strong financial performance, growing our proportional EBITDA to €902 million, and an operating cash return of 16.2%. At the same time, a proportional operating free cash flow per share increased by 4.3% year on year to 5.56 Euro, demonstrating our strong cash generation. Supported by a resilient portfolio and business performance offsetting around 30 million Euro of negative currency translation impact compared to last year, we confirm our full year proportional EBITDA outlook in the range of 1.17 to 1.2 billion euro. We're making good progress in growing our gas and industrial footprint. We invest in additional throughput capacity at the Reef Terminal in West Canada, while at the same time, we're making good progress in the terminal constructing together with our partner, Altagas. In China, we're strengthening our industrial position with the expansion of two industrial terminals, in Chaojing and in Haiteng. We're expanding LNG infrastructure in Colombia at SPEC terminal. And in India, our joint venture AVTL announced the development of a greenfield LPG import terminal in Mumbai, including a bottling plant and storage for liquid products as well. AVTL also acquired 75% of LPG Hindustan terminal in Haldia. We're pleased to see the developments at multiple locations in the fast-growing Indian market. So far, since we announced our ambition to grow in gas and industrial terminals globally, we've committed 1.6 billion euro. So now let's move to accelerate investments for the energy transition infrastructure. In Oman, we signed a joint venture agreement with OQ to develop and operate energy storage and terminal infrastructure. With our partner, we look forward to developing infrastructure at the strategic location of Duken. and jointly supporting sustainable industrial growth. The investment in Malaysia related to low-carbon fuels is progressing, and we look forward to start construction early 2026. So far, since we announced our growth plan for Accelerate, we've committed €256 million in energy transition infrastructure. Now, looking at our financial performance for the different terminal types we operate, we see an overall strong performance, with higher results compared to the same period last year. Gas markets were stable, with our terminals being supported by long-term contracts. Mainly due to some planned out-of-service capacity, a positive one-off last year, and the temporary challenges at Ames Energy Terminal, the results of the gas segment went down on a year-to-year basis. In the industrial segment, growth is contributing, and together with the one off in the second quarter, we see 15% increase in this attractive and strategic segment on a year-to-year basis. Chemical markets remain weak, while our terminals continue to perform relatively stable, despite some locations seeing lower occupancy rates. Energy markets, which we serve with our oil terminals, continue to see strong demand, especially in the hubs like Rotterdam and Singapore. All in all, This has led to an increased proportional EBITDA of €902 million and a strong operating cash return of 16.2% for the first nine months of 2025. To mention some highlights in our strategic pillar of improve. We are pleased to see an expansion commissioned at our inland Lesedi terminal in South Africa, where we increased our terminal capacity by 40%, supporting the region with distribution of clean petroleum fuels. In Spain, our joint venture divested the Barcelona terminal, which was storing petroleum, chemical, and vegetable oil products. And in a continued effort to improve our sustainability performance, we invest in a sustainable heating system and are visiting a terminal in the Netherlands, significantly reducing the emissions and decreasing operating costs. Now let's move to the growth investments. To start with an update on this year's proportional growth CAPEX spent. Year-to-date, We spent €447 million on growth, and we expect this number to be around €700 million for the full year, a significant increase from 2024. This figure reflects our share of investments, but not our equity contribution. Since the start of our Improve, Grow, Accelerate strategy, we've committed a total of €1.9 billion. €502 million of this 1.9 has been committed since the beginning of this year. We're well on the way to invest €4 billion towards 2030, which we aim to allocate in opportunities that meet our investment criteria. On this slide, we highlight the investment commitments that we've taken during the third quarter. We're investing around the world with a total proportional investment commitment of 188 million Euro only this quarter. We're progressing on our LPG terminal in Canada and building a new terminal in India. In Colombia, energy regasification capacity is expanded at SPEC terminal. And in China, our leading industrial position is strengthened with expansions in Chaoqing and Haitian. All these investments around the world we're doing together with partners. Now let's take a closer look at the REEF terminal in West Canada. Construction work is progressing well, and the project is on track to be commissioned at the end of 2026 within budget. We're investing an additional €34 million to increase the throughput capacity of the terminal, leveraging the common infrastructure of the terminal, such as the constructed jetty. This additional throughput capacity will become available in the second half of 2027. In the meantime, we will continue to investigate, together with our partner AltaGas, potential optimizations of the terminal, and a next phase of expansions. In Colombia, our SPEC terminal plays an important role in ensuring local energy security. With an investment of €25 million, the regasification capacity will be expanded by 33%. This additional capacity will diversify SPEC business, offering to new industrial customers and get connected to the country's gas grid. This investment is backed by long-term contracts and will deliver attractive operating cash returns upon completion. We're delivering on growth with multiple expansions and existing and new locations. And our capability to deliver will ensure project execution in the years to come. With multiple key investments coming online that will support future growth. We're on track. to have both Reeve and the fourth tank at gate commissioned by the end of 2026. And further down the line, multiple expansions and new terminals will follow, supporting long-term stable and growing returns. To wrap it up, we presented strong results this quarter, supported by a healthy demand for infrastructure and leading to an operating cash return of 16.2% year-to-date. We continue to deliver growth, with our key growth projects on track and new expansions announced. And we're pleased to confirm our outlook, despite a negative currency translation effect of 30 million euro. With that, I'd like to hand it over to Michiel to give more details on the year to date and third quarter numbers.