Koninklijke Vopak Uns/Adr

Good day and welcome to the Royal Warpack full year results 2025 update conference call. At this time, all participants are in listening only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session via the phone, you'll need to press star 11 on your telephone keypad and you should hear an automated message advising you that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference call is being recorded. I would now like to hand you over to your speaker of today, Patrona Topcu. Please go ahead.

Good morning, everyone, and welcome to our full year 2025 results analyst call. My name is Patrona Topcu, head of IR. Our CEO, Shushu Dik-Rishal, and CFO, Niyaz Yeltsin, will guide you through our latest results. We will refer to the full year 2025 analyst presentation, which you can 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 involve 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 Dik.

Thank you very much, Fatjana, and a very good morning to all of you joining us in the call today. I would like to start with the key highlights of the year. 2025 was another year of disciplined strategy execution and sustained momentum for VOPAC. We delivered record financial results, executed our growth strategy, and showed our commitment to create and distribute value to our shareholders. Demand for our services remains strong, which is reflected in a healthy occupancy rate of 91.4%. Despite currency headwinds, we delivered a record-level EBITDA in 2025. We further optimized our portfolio, divesting our terminals in Korea, in Barcelona, and Venezuela. while establishing our footprint in Oman and completing the IPO of AVT Health in India. We also made good progress on executing our growth strategy. Some of our largest projects like Reeve LPG Terminal in Canada and Gate 4th Tank in the Netherlands are progressing well. We have now committed around 1.9 billion euro to growth projects since 2022. and are well positioned to reach our ambition of investing €4 billion through 2030. We see this not as a target to spend, but rather as an opportunity to invest in attractive growth opportunities. Finally, we showed our commitment to distribute value to our shareholders. In line with our disciplined capital allocation priorities, we are announcing a shareholder distributions program of around €1.7 billion, through year end 2030. Before we dive deeper into the results, let's have a look at where we stand in the execution of our strategy. In 2022, we launched our improve, grow and accelerate strategy. And in the first phase, we significantly strengthened our foundation, applying strategic portfolio management while increasing the exposure to gas and industrial terminals. That led to an improvement of the operating cash return from 10.2% in 2021 to 15.6% in 2025. Our strengthened foundation positions as well to increase the pace of our investment commitments and growth CapEx in 2025. We are focused on executing our major projects, delivering them both on time and on budget. As these assets come online from 27, From 2027, we expect them to positively contribute to our return profile. And this will further accelerate our growth strategy execution as we look for continued ways to accelerate our investments in attractive growth projects. As we execute our growth strategy, we remain committed to distribute value to our shareholders. Since 2021, we have distributed around 1.2 billion euro in dividends and share buybacks. And in line with our disciplined capital allocation priorities, we're making a step change now by announcing a shareholder distributions program of around 1.7 billion euro through year end 2030. Now back to our results. As mentioned, 2025 was a strong year in terms of strategy execution. We continue to improve the performance of our portfolio, generating a record level of operating free cash flow, leading to an operating cash return of 15.6%. In addition, we completed the IPO of AVDL in India, and we added additional investment commitments during 2025, of which the majority is allocated to grow our base in gas and industrial terminals. With regards to the accelerate strategic pillar, the developments of new supply chains for CO2 and ammonia as a hydrogen carrier are moving at a slower pace than we initially anticipated. At the same time, we're pleased with the investments in the Netherlands and Malaysia on low carbon fuels and sustainable feedstock infrastructure, as well as the early stages of battery developments. Now let's look at our sustainability performance, where we have safety always as our top priority. And while these metrics demonstrate best-in-class performance, they fall short of our ultimate safety ambitions. Looking at the emissions, we're making good progress in achieving our long-term goals. With regards to diversity, despite our ongoing efforts, we've not yet realized the level of gender representation to which we aspire and are committed to improving this. Looking at the financial performance for the different terminal types we operate, we've seen overall strong performance with higher results compared to last year, despite currency headwinds. LNG markets remained well supplied while global LPG trade was marginally higher than 2024. Mainly due to some planned out-of-service capacity and a positive one of last year, 2024, the results of the gas segment went down year on year. In the industrial segment, growth is contributing And together with the one in the second quarter in 2025, we see a 15% increase, notwithstanding the uncertainty in the macro environment. Chemical markets were challenging for our customers in 2025. 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. And performance is driven by increased throughputs, higher rates, and contract indexation. All in all, this has led to an increased proportional EBITDA to 1.184 million euro. And a strong operating cash return of 15.6%. Now let's move to the execution of our growth strategy. Since the start of our improve, grow, and accelerate strategy, we've committed a total of 1.9 billion euro. Around 550 million euro of this 1.9 billion has been committed since the beginning of 2025. We're well positioned to achieve our ambition of investing 4 billion euro by 2030, supporting our long-term operating cash return ambition of 13 to 17%. During 2025, we made good progress in expanding our capacity. The construction of our LPG export terminal in Western Canada and the fourth tank at our gate terminal in the Netherlands are progressing as planned. Also, we're expanding our capacity in Asia with multiple FIDs taken in China, India, Malaysia, and Thailand. In the Latin America region, we're expanding our capacity in Brazil and in Colombia. As mentioned, we've realized strong momentum in executing our growth strategy. We've already commissioned around 650 million euro, and these projects are contributing to our results. Around 1.3 billion euros is still in the construction, and we expect to commission around 775 million euro around year-end 2026, and that's related mainly to Gateforce Tank and LPG in Canada. In the period 27-28, we expect to commission around €325 million and around €175 million in 2029 and beyond. The already commissioned growth projects, as well as the growth CAPEX under construction, will further reinforce our long-term stable return profile. 70% of our revenues are generated from contracts longer than three years, a 10% point increase from around 60% in 2021. Currently, around 40% of our EBITDA is generated by assets in gas and industrial. Looking ahead, we expect continued strong momentum. We've shown strong business performance in the recent years. The market indicators for storage demand remain firm, supporting the delivery of our growth projects and the resilient performance of our existing business. We expect this momentum to continue, and this is reflected in our long-term ambitions. We've raised our long-term operating cash return ambition to an annual range of between 13% to 17%, and are well on track to invest €4 billion growth capex through 2030. So let's wrap it up on this slide. We have an unparalleled global infrastructure portfolio, proven to be resilient in uncertain times. we expect a robust energy demand through 2030. And through our strategic locations and the critical link they provide, we'll support further growth opportunities leading to long-term stable returns. With our ambition to allocate €4 billion growth CAPEX through 2030, of which €1.3 billion currently under construction, we deliver clear, tangible levers for growth. And last but not least, We have a strong focus on creating and distributing value to our shareholders through cash dividends and share buybacks. With that, I'd like to hand it over to Michiel to give more details on the full year and fourth quarter numbers.