Finance
Vopak to turn strong profits into $2 billion investor returns
Published by Global Banking & Finance Review®
Posted on February 25, 2026
2 min readLast updated: February 25, 2026
Tags:share buybacks
Quick Summary
Vopak’s net profit jumped 61% to €604m on a 91% occupancy rate, delivering record free cash flow. It plans €1.7bn in shareholder returns through 2030 via annual dividend hikes and share buybacks up to €500m.
By Lucie Barbier and Hugo Lhomedet
Feb 25 (Reuters) - Tank storage group Vopak said on Wednesday it would return 1.7 billion euros ($2.0 billion) to shareholders over the next five years, after its profit surged 61% last year on the back of strong cash flow.
Its shares jumped around 10% in early Amsterdam trading following the earnings release.
The Dutch company, which provides storage and handling services to the energy and manufacturing end markets, said the distribution would be made through dividends and share repurchases through 2030.
The plan consists of annual increases of at least 5% in the per-share dividend and a multi-year share buyback programme of up to 500 million euros, Vopak said.
Based on last year's 604 million euro profit and record operating free cash flow of 823 million euros, the Rotterdam-based company will propose a 12.5% hike in its annual dividend to 1.80 euros per share.
It also raised its long-term operating cash return target to between 13% and 17%, having guided for more than 13% previously.
Finance chief Michiel Gilsing told Reuters the improved cash generation stemmed from replacing ageing infrastructure with modern storage facilities that require lower maintenance spending.
Vopak aims to invest 4 billion euros in new infrastructure by 2030, half of which has already been committed in 2025.
CHEMICAL CUSTOMERS PRESSURED BY TARIFFS
Vopak's chemical storage business has come under pressure as customer demand softened due to global trade tensions, Gilsing said.
"All these tariffs ... obviously (don't) help the economy growing ... and that's where you also see some of our chemical customers really have challenges," he said.
However, he added the impact of Vopak's business should be limited, as long-term contracts mitigate the damage.
The U.S. imposed a new tariff from Tuesday of 10% on all goods not covered by exemptions, the rate first announced by President Donald Trump on Friday rather than the 15% he promised a day later.
($1 = 0.8481 euros)
(Reporting by Lucie Barbier and Hugo Lhomedet in Gdansk, editing by Milla Nissi-Prussak)
Key Takeaways
- •Net profit rose 61% to €604 million for 2025, reflecting strong performance.
- •Proportional occupancy remained high at 91%, supporting revenue and margins.
- •Vopak targets €1.7 billion in shareholder returns through 2030.
- •Plan includes ≥5% annual dividend increases and buybacks up to €500 million.
- •Operating free cash flow hit a record €823 million, up 7% year over year.
Frequently Asked Questions about Vopak to turn strong profits into $2 billion investor returns
1What is the main topic?
Vopak announced a €1.7 billion shareholder returns program through 2030, supported by strong 2025 results and high occupancy.
2How will Vopak return €1.7 billion to investors?
Through annual dividend increases of at least 5% and a multi-year share buyback program of up to €500 million.
3What drove Vopak’s profit surge?
A 91% occupancy rate and strong cash flow generation lifted 2025 net profit 61% to €604 million, with record operating free cash flow of €823 million.
