Exolum diversifies its business aiming to become a significant player in the development of new energy vectors
Exolum has launched projects relating to the storage and distribution of chemicals, eco‐fuels, hydrogen and the circular economy
The company will continue to operate its hydrocarbon transport and storage business in an efficient and sustainable manner while growing in the aviation sector
With its sustainability strategy Exolum aims to reduce CO2 emissions by 50% in 2025 and to become a zero‐emissions company in 2050
The company’s profit after tax reached 168 million eurosin 2020, a reduction of 41.2%, and it invested 105.1 million euros, an increase of 23.1%
Earlier today Exolum’s CEO, Jorge Lanza, explained the evolution of the business and the new challengesfaced by the company in the current energy transition scenario. The company is currently undergoing an important evolution process in order to adapt to the new environment and its own internal transformation.
In the light of the new paradigm, Exolum will continue to perform its traditional business of hydrocarbon transport and storage in an efficient and sustainable manner with the purpose of
ensuring that society has access to fuels, while progressing towards diversification and expansion of logistics services for other products that enable the company to leverage on its capabilities and guarantee business sustainability. It is also implementing RDI projects relating to the development of alternative energies, which allow the company to cooperate with the sustainability of the planet and position itself in new sectors where it can contribute with its expertise.
Moreover, Exolum has carried out an ambitious international expansion plan which has enabled it to become the industry leader in Europe and one of the most important global companies with operations in eight countries.
The company’s latest transaction, completed at the end of last year, consisted of the acquisition of 15 storage terminals in the United Kingdom, Ireland, Germany and the Netherlands, thus consolidating its international presence, diversification and the expansion of its business to chemical and biofuel storage.
In the aviation sector, the company will continue to promote its international growth in the provision of specialised aviation fuel logistics services, at the same time focusing on the
development of sustainable fuels.
Altogether, the company has a workforce of 2,300 employees and operates in 8 countries: Spain, the United Kingdom, Ireland, Germany, the Netherlands, Panama, Ecuador and Oman, with a
pipeline network of over 6,000 kilometres, 68 storage terminals and 45 airport facilities, and a total storage capacity of more than 11 million cubic metres.
Diversification and new business
As part of this diversification process, Exolum is launching initiatives to leverage on its experience as a comprehensive manager of energy productstorage, transport and distribution facilitiesin order to develop comprehensive logistics solutions with service quality, supply security and efficiency and competitiveness as its key pillars.
In thisregard, Exolum wishesto participate as a relevant player in the development of the hydrogen sector, which will play a decisive role in the future energy mix. For such purpose, the company has submitted a portfolio of renewable hydrogen‐based projects to the call for expressions of interest launched by the Ministry for Ecological Transition and Demographic Challenge and the Ministry of Industry. This portfolio of projects has associated investments reaching over 500 million euros and includes different projects to be developed on the Iberian Peninsula, the Balearic Islands and the Canary Islands.
Exolum focuses on integrating solutions throughout the whole value chain for the production, transport, storage and distribution of green hydrogen. One of the most ambitious projects is the
development of hydrogen corridors that cover the whole Iberian Peninsula, thus allowing the new energy vector to have a uniform penetration. The company is also developing alliances throughout the hydrogen value chain that enable the development of new technologies.
The circular economy is another strategy on which Exolum is focusing, aiming to leverage on an excellent location and its extensive experience in the hydrocarbon sector to develop projects
relating to water and waste treatment. In this regard, the company is planning on building a waste recycling plant in the port of Algeciras which will make it possible to transform wastewater into fuel for ships.
The development of low‐carbon liquid fuels, eco‐fuels, is another project being developed by the company in cooperation with other players in the sector in order to facilitate their introduction into the market. Accordingly, Exolum manages infrastructures in Spain that are fully adapted to biofuelstorage and distribution and cooperates with the oil sector in the development and promotion of 2nd generation advanced biofuels.
Exolum is also focusing on the promotion, marketing and distribution of sustainable aviation fuel (SAF) and has developed the AVIKOR platform which offers both individuals and companies flying from Spain the chance to do so more sustainably by enabling them to reduce the emissions from their flights through the use of sustainable aviation fuel (SAF).
In order to support this diversification, Exolum has a dedicated division that promotes innovation and entrepreneurship within the company under the name of Exolum Ventures. Through this
initiative, the company cooperates with other entrepreneurs or start‐ups that can contribute to faster and better innovation, in many cases combining traditional infrastructure and new digital applications.
Exolum hassigned the UN Global Compact, thus committing to making a contribution to compliance with the Sustainable Development Goals established by the UN in 2015 and has a sustainability strategy that aims to reduce its CO2 emissions by 50% in 2025 and to become a zero‐emissions company in 2050.
For such purpose, different initiatives are underway to reduce energy consumption and guarantee that it is obtained from a renewable source, including the construction of photovoltaic parks at facilities for the generation and self‐consumption of 100% renewable electricity.
Exolum also participates in two projects relating to plastic recycling to produce liquid fuels and has enhanced its fleet with a new next‐generation ship which is more efficient and is equipped with the latest technology to reduce SOx and NOx emissions.
This year, marked by the pandemic, the company has adapted quickly and with dynamism to the current scenario maintaining its services and continuing to meet customer expectations: a quality service, and safety as a priority, with the purpose of adapting to their needs and guaranteeing fuel supply nationally. The company has an active contingency plan in place to protect the health of everyone working within the company and its partners and to ensure operation of infrastructures and fuel supply.
Profit after tax of the Exolum Group in 2020 amounted to 167.7 million euros, which represents a reduction of 41.2% compared to the previous year.
Operating income amounted to 635.3 million euros, or 16.6% less than in 2019, mainly due to commercial logistics, both in Spain and the United Kingdom, oil product storage and the aviation
The contribution made by the international business has continued to grow and currently represents 19.4% of the group’s total figure. As for operating expenses, they stood at 407.3 million
euros, or 3.5% more than in 2019.
EBITDA for the Exolum Group reached 337.5 million euros, 26.6% less than in 2019, due to the impact of Covid‐19 on the logistics network of all companies within the Exolum Group.
The Exolum Group invested 101.3 million euros in 2020, 23.1% more than in the previous year, in order to continue to improve its infrastructures and services, both in Spain and in the other
countries where it operates.
In Spain, the company invested 54.2 million euros in the implementation of several projects. Specifically, 67.6% of that figure was devoted to maintenance and business growth investments
required to ensure that the infrastructures are in an optimal situation and guarantee value contribution for customers, 18.9% to the renewal, expansion and modernisation of equipment, and
13.5% to environmental and safety projects.
In the United Kingdom, the company invested 37.6 million euros in further modernisation of its logistics network to increase efficiency and safety, and in Ireland this figure amounted to 2.6 million euros, which was devoted to continuing the expansion of the fuel storage facility at Dublin airport.
The remaining figure was used in the Exolum business in other countries and other investment in innovation.
Operations in Spain
Oil product deliveries from Exolum facilities in Spain amounted to 36 million cubic metres in 2020, which represents a reduction of 24.3% over the previous year. Such reduction is due to the
movement restrictions imposed as a result of the Covid‐19 pandemic and which continue to have an impact on the demand for automotive products, particularly aviation products, which have been especially affected by the dramatic drop in air traffic in 2020.
Broken down by products, deliveries of gasoline and diesel oil decreased by 15.0% compared to 2019, kerosene and aviation fuel by 62.8% and fuel oils and IFOs by 47.2%. Furthermore, Exolum continues to provide the naphtha dispatch service that started in December 2017, supplying nearly 1.1 million m3 in 2020.
In 2021, automotive product deliveries have increased compared to 2020. However, compared to pre‐pandemic figures in 2019, deliveries are 9% lower. Aviation product demand continues at a low level, 75% lower than 2019 levels.