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RUBIS
RUBIS: Fiscal year 2018 demonstrated the solidity of Rubis' business model -
Ebit +6% - Dividend +6%
12-March-2019 / 17:35 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Paris, March 12, 2019, 17.35
After a mixed first half-year, the results for 2018 as a whole ultimately
proved stable relative to the previous year - excluding the non-recurring
items related to the withdrawal from Iran - for a 6% rise in Ebit.
Various factors affected the Group in 2018 but the core business represented
by Rubis ??nergie's distribution and support and services activities (75% of
Group's Ebit), excluding Madagascar and Haiti, posted a healthy 13% rise in
Ebit, whereas the storage business (12% of Group's Ebit) posted a 33%
decline due to a number of external factors: regional geopolitics affecting
flows in Northern Iraq, the absence of contango-related activity affecting
activity levels in both Turkey and France, temporary disruption to the
competitive positioning in Normandy, navigation difficulties on the Rhine
and unfavorable environmental taxes relative to Germany reducing transit in
the Eastern region.
Lastly, although the political, economic and social environment in Haiti and
Madagascar was detrimental to the contribution from the two subsidiaries
acquired in 2017, their 2018 results nevertheless show an overall net income
acquisition multiple of 13x.
CONSOLIDATED RESULTS AS OF DECEMBER 31, 2018
(in EURM) 2018 2017 Change Change at
constant
scope
Revenue 4,754 3,933 +21% +16%
EBITDA 500 496 +1% -5%
EBIT, of which 391 368 +6% 0%
Rubis ??nergie 275 254 +8% +2%
Rubis Support 88 64 +37% +25%
and Services
Rubis Terminal 46 69 -33% -33%
Net income, 254 266 -4% -1%
Group share
Cash flow 386 397 -3%
Capital 233 206
expenditure
Diluted earnings 2.63 2.84 -7%
per share
Dividend per 1.59 1.50 +6%
share (1)
(1) Amount proposed to the CSM to be held on June
11, 2019
The Group posted a 6% rise in Ebit (stable at constant scope):
· Rubis ??nergie benefited from a 12% increase in volumes distributed (+ 1%
at constant scope) with a 2% rise in unit margins. Volumes in Europe were
impacted by unfavorable weather conditions and environmental taxes on the
French subsidiaries weighed heavily on their results. Nevertheless, a
combination of commercial dynamism and market share gains resulted in 8%
Ebit growth (+2% at constant scope);
· Rubis Support and Services posted strong growth (+33%) in its gross
margin for volumes traded of 1.6 million m3, thanks in particular to
business expansion in Africa. Its results grew sharply (Ebit: +37% and
+25% at constant scope). Results from the Martinique refinery (SARA) rose
by 6%, in line with application of the decree regulating its
profitability;
· Despite excellent activity levels in Northern Europe (+13%) and in
storage in France excluding petroleum products (+16%), Rubis Terminal was
adversely impacted by the collapse (-71%) of activity levels in Turkey -
steep decline in petroleum flows from northern Iraq and absence of
contango-related activity, which also affected petroleum products activity
in France (-14%). Overall, the division's Ebit shrank by 33%.
The forced withdrawal from Iran and the partnerships from India as a result
of U.S. sanctions generated an after-tax loss of EUR15 million. Net income,
Group share after adjusting for this non-recurring amount reached EUR270
million, relatively stable (+2%) relative to 2017.
These results, obtained in a challenging environment, demonstrate the
solidity of Rubis' business model with its particularly diversified risk
structure.
The Group's financial position at the end of the fiscal year remained
strong, with a net debt to Ebitda ratio of 1.39.
Balance sheet extracts
(in EURM) 12/31/2018 12/31/2017
Total shareholders' equity 2,334 2,078
of which, Group share 2,197 1,944
Cash 756 825
Financial debt 1,450 1,512
Net financial debt 694 687
Net debt/shareholders'equity ratio 30% 33%
ANALYSIS OF MOVEMENTS IN NET FINANCIAL POSITION SINCE BEGINNING OF THE
FISCAL YEAR
The cash flow after cost of net financial debt and tax declined by 3% to
EUR386 million.
The working capital requirement was stable, representing 10% of revenue.
Receipt of a cargo of crude during the last week of December generated an
exceptional cash requirement of EUR32 million (increase in WCR) taking the
change in WCR to EUR81 million during the fiscal year.
(in
EURM)
Net financial debt as of December 31, 2017 (687)
Cash flow 386
Change in working capital (81)
Rubis Terminal capital expenditure (55)
Rubis ??nergie capital expenditure (116)
Rubis Support and Services capital expenditure (59)
Rubis holding capital expenditure (3)
Net acquisitions of financial assets (64)
Change in loans and advances and other flows 1
Dividends to shareholders and non-controlling (184)
interests
Increase in shareholders' equity 159
Impact of changes in scope and exchange rates 9
Net financial debt as of December 31, 2018 (694)
The main items of capital expenditure were as follows:
· Rubis Terminal: EUR55 million split between maintenance and improvements
to the various platforms (EUR31 million), the balance (EUR24 million)
being on capacity increases in Rotterdam (chemicals), Turkey (fuels),
Strasbourg (chemicals) and Dunkirk (bitumen);
· Rubis ??nergie: EUR116 million across the division's 26 subsidiaries and
branches and corresponding to upgrades to installations (terminals, gas
stations), capacity increases (bottles, tanks, terminals and gas stations)
or purchases of installations or business goodwill, such as the business
goodwill of a bottled LPG distributor in Barbados or the construction of
an import warehouse in Surinam in order to launch a fuel distribution
activity;
· Rubis Support and Services: EUR59 million, mainly on the SARA refinery
(EUR28 million) and investment in a new bitumen tanker to replace the
Maroni for EUR24 million.
The EUR159 million increase in shareholders' equity comprises an EUR86
million capital increase resulting from payment of the dividend in shares
(48.2% paid in shares), drawings on capital lines for EUR67 million and the
annual subscription to the company savings plan reserved for employees of
EUR6 million.
Net acquisitions of financial assets comprise the purchase of Repsol's LPG
distribution assets in the Azores and Madeira, and a 25% holding in
KenolKobil, a petroleum products distribution company listed in Kenya.
Following the launch of the public offer in early 2019, Rubis holds 97.6% of
the capital and the mandatory de-listing of the company will take place in
the near future.
OUTLOOK
The first weeks of the 2019 fiscal year have shown good overall momentum.
The Group is confident of its ability to continue generating organic growth
and pursue its acquisitions policy.
With this in mind, a resolution will be submitted to the forthcoming General
Meeting to increase the unit dividend by 6% to EUR1.59.
The 2018 financial statements were approved by the Board of Management at
its meeting on March 11, 2019, and by the Supervisory Board on March 12,
2019. The Statutory Auditors are in the process of issuing a report without
reservations.
Next publication:
First-quarter revenue on May 13, 2019 (after the close of the market)
Press contact Analyst contact
PUBLICIS CONSULTANTS - Aurélie RUBIS - Investor
Gabrieli relations
Tel: +33 (0)1 44 82 48 33 Tel: +33 (0)1 44 17 95
95
Regulatory filing PDF file
Document title: RUBIS: Fiscal year 2018 demonstrated the solidity of Rubis'
business model - Ebit +6% - Dividend +6%
Document: http://n.eqs.com/c/fncls.ssp?u=XXMQQYYXVB [1]
Language: English
Company: RUBIS
46, rue Boissière
75116 Paris
France
Phone: +33 144 17 95 51
Fax: +33 145 01 72 49
E-mail: communication@rubis.fr
Internet: www.rubis.fr
ISIN: FR0013269123
Euronext Ticker: RUI
AMF Category: News release on accounts, results
End of Announcement EQS News Service
786639 12-March-2019 CET/CEST
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=3aa0de0ee19216be9d03f06c2f905011&application_id=786639&site_id=vwd&application_name=news
(END) Dow Jones Newswires
March 12, 2019 12:35 ET (16:35 GMT)
