Opportunity & Strategy

Sound competitive strengths

Our primary business objective is to generate stable and predictable cash flows to deliver quarterly cash distributions to our unitholders, and to increase those distributions over time.

Our revenues come from long-term, fee-based contracts, with customers who are major industry participants and have strong credit profiles. We are also not exposed to commodity prices as we do not own or trade the inventory we store. We believe we offer a number of critical competitive strengths that will serve the company and its investors well:

A strategic and incentivised relationship with our sponsors

The quality of VTTI Energy Partners’ decision-making is directly enhanced by the insights of both Vitol and Buckeye Partners as major players in the global energy industry.

With their strong LP and GP ownership, Vitol and Buckeye Partners also have a strong incentive to support us.

A track record of growth to take into the future

VTTI has enjoyed rapid and continuous growth: from zero to 50.5 mmbbls / 8.0 m m3 capacity since its formation in 2006.

A continuing flow of opportunities lies ahead in the highly fragmented international midstream industry.

Location: in the heart of the hubs

VTTI Energy Partners is located in the major global energy market hubs where oil and refined product flows converge.

Stable cash flow

VTTI Energy Partners operates a proven model of long-term, fee-based, take-or-pay terminalling services with creditworthy counterparties.

We have no direct commodity price exposure for products stored at terminals.

A weighted average contract tenor of ~4 years.

Flexible, connected, equipped

A network capable of handling a wide repertoire of products.

Interconnections to sea, road, pipelines and railroad.

Fully automated technology in new builds or as part of retrofit programmes.

High barriers to entry

An asset base that is difficult to replicate (construction costs, locations, relationships, industry regulations, operational expertise).

Significant brownfield expansion opportunities at existing terminal sites.

our strategy

In order to generate stable cash flows that deliver regular, and increasing, distributions to unitholders, our business strategy is to:

Gain long-term, predictable cash flows by providing fee-based, take-or-pay terminalling services to our customers under long-term agreements. Our contracts have a weighted average remaining tenor of more than four years.

Maintain safe and reliable operations through implementing advanced technology and by building on the HSE culture that is already successfully instilled across our global terminal network.

Pursue growth through acquiring additional assets from VTTI. Under an omnibus agreement, VTTI offers us the right to acquire additional assets that it currently owns or will own in the future.

Capitalise on international market fragmentation through strategic acquisitions, whether independently, or jointly with VTTI or third parties.

Pursue organic development opportunities and greenfield construction projects; at several of our terminals this can be accomplished without purchasing additional property.

Continuously enhance customer service to retain our competitive position. We will continue to be driven by our customers’ needs as we seek to optimise multiple modes of transportation, advanced blending, loading and throughput, and to expand our offerings.

Maintain long-term viability through disciplined financial practices and flexibility. We believe our conservative capital structure and stable, fee-based cash flows will give us efficient access to capital markets at a competitive cost.

Health, Safety & Environment