05NOV2019 - NEWS - Vopak to focus on chemicals after oil slowdown

Industrial storage firm Vopak will develop a new terminal in China and expand existing ones in Belgium and Mexico to focus on chemicals as its oil terminals in Singapore become less profitable due to new shipping rules, it said on Monday.

The Dutch firm said it would develop a storage facility for chemicals in Qinzhou Chemical Park in southwest China after poor oil terminal performance hurt its third-quarter core profit.

Terminals in Singapore, the world’s biggest bunkering port, have been scrambling to convert to handle cleaner shipping fuel to meet new International Maritime Organization regulations known as IMO 2020 aimed at curbing pollution.

Vopak reported earnings before interest and taxes (EBIT) slightly below consensus at 407 million euros ($454.70 million), saying the oil terminals in Singapore and Europe partially offset good performance from new assets.