Intro
Vopak stores oil, gas as well as chemicals and operates a global network of terminals worldwide. Its end markets are from the energy, manufacturing or food and agriculture sectors.
The single biggest shareholder of Vopak is Hal Trust with 48.15%, a company also listed on Amsterdam’s stock market.
Valuation
From 2017 to 2021, the lowest adjusted EPS achieved by Vopak was EUR 2.25 (high at EUR 2.80) demonstrating a very robust business model. At current prices, this translates into a P/E of below 10x, which doesn’t seem expensive.
The company is paying a progressive dividend, which currently stands at EUR 1.25 per share, yielding 5.6%.
What’s next?
After a more than 50% drop from spring 2020, it seems the shareholders that wanted to get out of Vopak are out to a large degree. The question is, what’s in the mind of the majority shareholder Hal Trust? If they still like Vopak, they might be inclined to make an offer for the entire company. Alternatively, Vopak can initiate a share buyback at these levels – which they have also done in the past. Time will tell, but at these prices there is certainly a high degree of pessimism reflected in the price.
Current Price
€22.23 per share
Disclosure
The author is at the time of publishing not long VPK.
