Royal Vopak to allocate 1 billion euros to energy transition infrastructure

AMSTERDAM: Royal Vopak (Euronext: VPK) reaffirmed its strategic priorities at its Capital Markets Day, focusing on improving financial and sustainability performance, expanding in industrial and gas terminals, and accelerating investments in energy transition infrastructure.

The company raised its operating cash return target to above 13%, up from its previous goal of over 12%. 

Vopak announced plans to invest an additional 1 billion euros in gas and industrial infrastructure by 2030, bringing its total commitment to 2 billion euros. It also confirmed its ambition to allocate 1 billion euros to energy transition infrastructure, targeting low-carbon fuels, ammonia, liquid CO2, and battery storage. 

CEO Dick Richelle highlighted the company’s progress, noting it had already committed 1 billion euros to gas and industrial terminals ahead of schedule. Vopak aims to maintain a proportional leverage ratio of 2.5-3.0x and will continue its progressive dividend policy while evaluating annual share buyback programs.