RUBIS
RUBIS: A robust first half - EBIT: up 17% - Net profit: up 24%
11-Sep-2019 / 17:48 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Paris, 11 September 2019, 5:35 pm
The first half of 2019 was excellent in terms of EBIT (up 17%), with growth
that was evenly spread across the businesses: Rubis ??nergie and Rubis
Support and Services registered firm growth in unit margins (up 12%)
together with solid business, while Rubis Terminal returned to growth (11%
increase in EBIT), after successfully managing to stabilize a difficult
situation in 2018.
The integration of KenolKobil is under way: although first quarter
consolidated earnings were hit by narrow margins on aviation and commercial
fuel oil, the outlook is good now that the new team is embarking on an
extensive reorganization of the acquired operations in order to bring them
into line with Group standards (e.g. internal control, organization and
governance).
On a constant scope basis - stripping out KenolKobil and the LPG
distribution assets acquired from Repsol in Portugal and integrated from 1
January - EBIT rose by 14%.
(in 2019* 2019 2018 Change** Change at
EURM) Reported Excluding constant
IFRS 16 scope**
Sales 2,727 2,727 2,403 13% -5%
revenue
EBITDA 313 298 258 16% 13%
EBIT, 238 236 202 17% 14%
of
which
Rubis 176 174 150 16% 13%
??nergie
Rubis 51 51 42 21% 19%
Support
and
Service
s
Rubis 24 23 21 11% 11%
Termina
l
Net 157 160 129 24% 13%
profit,
Group's
share
Cash 248 236 210 12%
flow
Capital 109 109 108
expendi
ture
* Mandatory application of IFRS 16 "Leases" from 1
January 2019. The 2018 financial statements have not
been restated.
** Change 2019/2018, excluding IFRS 16.
As regards consolidated EBIT, the following comments apply:
· Rubis ??nergie registered an increase in distributed volumes of 13% (up
1.5% on a like-for-like basis, stripping out exceptionals) and EBIT growth
of 16% (up 13% like-for-like), thanks to a positive dynamic in activity
and margins across all products and geographical regions;
· Rubis Support and Services recorded firm activity, with an increase in
supply-related unit margins (21% increase in EBIT);
· a solid contribution from Northern Europe and from the storage of
chemicals, fertilizers and molasses, combined with the stabilization of
fuel-related revenue in France, facilitated a return to growth (up 11%) in
EBIT at Rubis Terminal, even though the division's contribution continued
to be dampened in Turkey by the absence of contango.
RUBIS ??NERGIE: fuel distribution
CHANGE IN VOLUMES SOLD, BY GEOGRAPHICAL REGION
IN THE FIRST HALF OF THE YEAR
(in '000 m3) H1 - 2019 H1 - Change Change at constant scope
2018
Europe 465 457 2% -1%
Caribbean 1,138 1,177 -3% -3%
Africa 1,006 680 48% -4%
TOTAL 2,610 2,315 13% -3%
CHANGE IN VOLUMES SOLD, BY GEOGRAPHICAL REGION
IN THE SECOND QUARTER
(in '000 m3) Q2 - 2019 Q2 - Change Change at constant scope
2018
Europe 213 200 7% 4%
Caribbean 584 590 -1% -1%
Africa 687 369 86% -8%
TOTAL 1,484 1,158 28% -2%
Actual volumes before adjustment for changes in scope were up by 13% in the
first half of the year. The changes in scope during the period mainly
concerned Africa (KenolKobil) and the LPG assets acquired from Repsol
(Madeira-Azores). Adjusting for scope effects, volumes decreased by 3%,
weighed on by political and social unrest in Haiti at the beginning of the
year, the mild winter in Europe and the comparison basis (2018) on a spot
contract in Martinique. Adjusting for these one-offs, overall volume growth
came to 1.5%.
The downtrend in list prices that has been ongoing for 12 months has had a
positive impact on unit margin, which rose by 12% on a constant scope basis.
The increase in overall sales margin (up 13%) sent EBIT up sharply by 16%
(up 13% on a constant scope basis) to a record level of EUR174 million:
· Europe: volumes (up 2%) and unit margins (up 1%) were stable overall,
which meant that EBITDA was stable at EUR54 million. However, provisions
set aside at the Swiss subsidiary to factor in an increase in
employee-related commitments affected regional EBIT by 8% to EUR38
million;
· Caribbean: stripping out Haiti, the economic environment was rather
good, fuelled by US growth and generating positive levers for growth in a
region in which Rubis ??nergie has invested heavily in sales and marketing.
Adjusting for the exceptional circumstances in Haiti, non-recurring
volumes in Martinique in 2018 and the halt in supply affecting one of our
counterparts in Jamaica, volumes rose by 1.4%. EBIT registered an
impressive jump (up 29%), buoyed by very firm unit margins;
· Africa: the volumes for the first half of the year incorporate
KenolKobil over one quarter - bearing in mind that this company has been
consolidated since 1 April - bringing volume growth in the region to 48%.
On a constant scope basis, volumes in Africa dipped 4%. Adjusting for the
exceptional growth in bitumen volumes in 2018, driven by the presidential
elections in Nigeria, growth on a constant scope basis came to 0.6%. All
in all, EBIT before adjustment for changes in scope climbed 21% (up 14% on
a constant scope basis).
Capital expenditure amounted to EUR50 million for the period, which included
the commissioning of a distribution terminal in Suriname.
RUBIS SUPPORT AND SERVICES: refining, trading-supply and shipping
This subgroup brings together Rubis ??nergie's supply solutions for petroleum
products and bitumens:
· the 71% interest in the refinery in the French Antilles (SARA);
· the trading-supply business in the Caribbean and Africa;
· in logistical support, the shipping business (12 chartered vessels) and
storage facilities and pipelines in Madagascar.
Earnings at the SARA refinery are regulated by a government decree that sets
the level of ROE. The 34% increase in EBIT was mainly due to the
cancellation in the consolidated financial statements of actuarial gains and
losses on pension commitments taken to profit and loss in the statutory
accounts (actuarial losses in 2019 and actuarial gains in 2018).
The contribution of the trading-supply business amounted to EUR30.5 million
(up 13.5%) and breaks down as follows:
· trading-supply and shipping operations accounted for volumes of 706,000
m3. Higher unit margins and a greater contribution from shipping thanks to
productivity gains on a new vessel (a bitumen carrier) fuelled a 25%
increase in EBIT;
· port services and pipeline operations in Madagascar made a EUR6.5
million contribution.
This made for total growth of 21% in EBIT, bringing it to EUR51 million.
Capital expenditure amounted to EUR29 million for the period, split between
the SARA refinery and refitting work on a new bitumen carrier.
RUBIS TERMINAL: bulk liquid storage
Storage operations are proving very resilient in 2019 and business has
stabilized after a difficult year in 2018. All in all, factoring in 100% of
the assets included in the scope, revenues increased by 2% to EUR89.6
million. The trend in storage revenues by geographical area breaks down as
follows:
· France: up 5%
Stabilization of fuel-related revenue and a strong 18% increase in revenue
on other products (chemicals, molasses and fertilizers).
· ARA: up 5%
Revenues at the Antwerp site were stable (down 1%) after benefiting from
additional cyclical revenue in 2018. Rotterdam recorded a 13% rise, helped
by new capacities commissioned (Carbon Black). The two terminals recorded
utilization rates close to 100%.
· Turkey: down 28%
Operations at the terminal hinge on three segments: trader-related volume
tied to the contango, the transit of crude oil and refined products from the
northern region of Iraq (Kurdistan) and the transit-division-consolidation
of cargoes.
The first two segments showed signs of flagging in 2018 after a record year
in 2017. For 2019, expectations of a return of contango have yet to be
proven right. At the same time, transit volumes towards Iraq remain low.
Volumes continue to flow in and out and the Group is expecting new transit
contracts to boost the contribution this year by comparison with 2018.
EBIT in this segment climbed 11% to EUR23 million, with a 16% increase in
France, a steady performance in Northern Europe and negative EBIT of EUR0.7
million in Turkey.
Capital expenditure amounted to EUR29 million over the period, which
included the extension of chemical capacities in Rotterdam and the
adaptation of capacities for bitumen storage in Dunkirk.
Outlook
Operations should continue to progress in the second half of the year.
The Group will continue to explore development opportunities, both through
organic and external growth.
At its meeting of 11 September, Rubis' Supervisory Board approved the
interim financial statements drawn up to 30 June 2019.
Next meeting:
Third quarter sales revenue, 7 November 2019 (market closing)
Press Contact Analyst Contact
PUBLICIS CONSULTANTS - Aurélie RUBIS - Investor
Gabrieli Relations
Tel. +(33) 1 44 82 48 33 Tel: +(33) 1 44 17 95 95
Regulatory filing PDF file
Document title: RUBIS: A robust first half - EBIT: up 17% - Net profit: up
24%
Document: http://n.eqs.com/c/fncls.ssp?u=FTQBYNSOND [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: Inside information / News release on accounts, results
EQS News ID: 872053
End of Announcement EQS News Service
872053 11-Sep-2019 CET/CEST
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=511212a930a11bf53af4d2eb892dd0fe&application_id=872053&site_id=vwd&application_name=news
(END) Dow Jones Newswires
September 11, 2019 11:49 ET (15:49 GMT)
