Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Investor Day (December 2013)
21 slides from Royal Vopak Nv's investor day presentation, Dec 10, 2013
Slide 1: U.S. oil and gas export scenario's: What are the opportunities for Vopak?
U.S. oil and gas export scenario’s: What are the opportunities for Vopak? Capital Markets Day, 10 December 2013 Dick Richelle, Division President Americas
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains ‘forward-looking statements’, based on currently available plans and forecasts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the
Slide 3: Dick Richelle, President, Vopak Americas
Dick Richelle President, Vopak Americas Name Dick Richelle Age 43 Education Dick holds a doctoral degree Business Economics from Erasmus University in Rotterdam. Career Dick joined Vopak in 1995 and has held various (general) management positions in Brazil, Mexico and the Netherlands. He was appoint
Slide 4: Americas
Americas Positive developments at the U.S. Gulf Coast and Venezuela, with downside in Los Angeles (U.S.) and Brazil Storage Capacity Occupancy rate*** In million cbm In percent 94.0 90.0 U.S. Gulf Coast 1.3 -4% U.S. West Coast 0.4 U.S. East Coast 0.4 YTD 2012 YTD 2013 Canada 0.2 EBIT**** Mexico* 0.3
Slide 5: Contents
Contents Main market developments U.S. Gulf Coast area Vopak’s position in U.S. Gulf Coast area Vopak’s opportunities in U.S. Gulf Coast area 5 Capital Markets Day 10 December 2013
Slide 6: Main market developments
Main market developments The shale revolution and biofuels developments Shale gas Tight oil Biofuels The North American shale revolution Government mandates drive biofuels trade 6 Capital Markets Day 10 December 2013
Slide 7: The shale revolution
The shale revolution It has strengthened the (export) growth and competitiveness of the U.S. oil and gas industry Crude oil production In Mb/d 6.4 9.9 +55% 2012 2020 Natural gas production In Tcf 16.7 7.5 +123% Current shale plays 2012 2020 Stacked plays Shallowest / youngest NGL production Intermed
Slide 8: Natural gas as a cheap feedstock
Natural gas as a cheap feedstock North America positioned as second lowest-cost producer of ethylene-intensive chemicals globally $1550 West $1400 Northeast Europe $1250 Asia $1100 Indian $ 950 subcontinent $ 800 Southeast Asia 2012 $ 650 ethylene $ 500 U.S. Ethane North America demand $ 350 Middle
Slide 9: Natural gas as cheap feedstock
Natural gas as cheap feedstock New ethylene capacity and downstream plants are currently under construction or consideration Capacity announced Project Location in Kt/y Project operator Texas (US) 1 Ethylene expansion Chocolate Bayou 1 2013 105 Ethylene expansion La Porte 2 2 3 Ethylene ex
Slide 10: Shale gas impact
Shale gas impact Potential increasing U.S. Gulf Coast ethylene and LPG exports Potential ethylene exports and capacity Potential LPG exports and capacity In millions tons In millions tons 1.6 25 20 1.2 15 0.8 10 0.4 5 0.0 0 2012 2014 2016 2018 2020 2012 2014 2016 2018 2020 2022 Export potential Comm
Slide 11: Tight oil impact
Tight oil impact Source and composition of North America crude oil supply is changing Expected decreasing crude oil imports into FSU U.S. Gulf Coast from Latin America, Mexico United States and Middle East Middle East Heavy crude oil imports remain Africa Expected increase in Latin America int
Slide 12: Tight oil impact
Tight oil impact Source and composition of North America crude oil supply impact future US crude oil flows Canadian Oil Sands WA MT ME ND MN VT OR ID PADD 4: NH MA SO WI RockyWY MI NY CT RI Mountain NYC PADD 5: NE IA PA NJ NV West Coast PADD 2: IN OH DC UT DE CO MidwestIL MD WV VA CA KS MO KY PADD 1
Slide 13: Tight oil impact: Competitive CPP exports
Tight oil impact: Competitive CPP exports Potential expansion of splitter capacity might stimulate distillates and naphtha exports USGC Refined Products Flows Volume (MMT) 60 Actual 2012 Low Case 2020 50 High Case 2020 40 30 20 10 0 Distillate exports Gasoline exports Fuel oil exports Naphtha export
Slide 14: Biofuels impact
Biofuels impact A growing commodity going forward, as part of transport fuel composition U.S. Europe 400 600 Volumes increased rapidly with obligatory mandates in 100 Europe and North America 200 0 in early 2000s 0 2002 2012 2022 2002 2012 2022 Composition of declining gasoline demand in the U.S
Slide 15: Contents
Contents Main market developments U.S. Gulf Coast area Vopak’s position in U.S. Gulf Coast area Vopak’s opportunities in U.S. Gulf Coast area 15 Capital Markets Day 10 December 2013
Slide 16: Vopak position in U.S. Gulf Coast area
Vopak position in U.S. Gulf Coast area Existing presence and expansion opportunities Galena Park (100%) 170,032 cbm 86 tanks; 1 ship dock 12 truck bays; 11 rail spots Deer Park (100%) 1,115,103 cbm 242 tanks; 5 ship docks 22 truck bays; 23 rail spots; 40 car ethanol unit train rack Pot
Slide 17: Competition in area
Competition in U.S. Gulf Coast area Examples of storage capacity currently under construction or consideration Oiltanking Partners announces $200M in expansion projects Kinder Morgan begins service at BOSTCO Oil Terminal on Houston Ship Channel 17 Capital Markets Day 10 December 2013
Slide 18: Contents
Contents Main market developments U.S. Gulf Coast area Vopak’s position in U.S. Gulf Coast area Vopak’s opportunities in U.S. Gulf Coast area 18 Capital Markets Day 10 December 2013
Slide 19: Growth opportunities in area
Growth opportunities in U.S. Gulf Coast area At existing terminals and two additional land plots (Crude) oil Chemicals / gasses* Biofuels To a lesser extent Potential Potential Existing opportunities, opportunities for terminals amongst others ethanol and and through industrial biodiesel brown
Slide 20: Critical success factors
Critical success factors Growth opportunities in U.S. Gulf Coast area 1▪ Pipeline connection 3▪ Time to market or first 2▪ Right partner for the mover advantage right reason 20 Capital Markets Day 10 December 2013
Slide 21: Royal Vopak contact details
Royal Vopak Westerlaan 10 Tel: +31 10 4002911 3016 CK Rotterdam Fax: +31 10 4139829 The Netherlands www.vopak.com