DJ RUBIS: Great resilience in the face of Covid - EBITDA: down 11% - Net income: down 11%
RUBIS
RUBIS: Great resilience in the face of Covid - EBITDA: down 11% - Net
income: down 11%
17-Sep-2020 / 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, 17 September 2020, 5:35 pm
The first half of 2020 was profoundly affected by the impact of Covid. This
was particularly true in Q2, with sales of all products marketed by Rubis
??nergie down 42% during their lowest point in April. This was followed by a
gradual return to normality in the beginning of July as the lockdown was
eased.
The sharp drop in oil prices from mid-March onwards immediately resulted in
negative inventory effects, from which there was a partial recovery at the
end of Q2, and in a tightening of margins on the distribution side.
These developments, whose magnitude was extraordinary, had a &euro43 million
impact on the gross distribution margin in Q2 alone.
Overall, the business ultimately demonstrated great resilience thanks to the
Group's multi-segment and midstream/downstream positioning. Indeed, the LPG,
residential and agrifood sectors held up very well at a time when aviation
was particularly exposed, while retail/trading exposure demonstrated its
cyclical complementarity, with strong growth in the trading-supply of
bitumen, in particular, but also in storage, which clearly benefited from
the return of the contango.
The financial statements reporting an 11% fall in both EBITDA and net income
(Group share).
Consolidated financial statements as of 30 June 2020
(in millions of euro) 2020 2019 Change Change at constant
scope
Revenue 2,051 2,58 -21% -32%
3
EBITDA 240 271 -11% -15%
EBIT, of which 170 215 -21% -24%
Rubis ??nergie 130 176 -26% -29%
Rubis Support and 52 51 2% 2%
Services
Net income, Group 139 157 -11% -30%
share, of which
Net income from 39 143 -73%
continuing operations,
Group share
Net income from 100 14 633%
operations held for
sale,
Group share
Cash flow 208 248 -16%
Capital expenditure 129 109
The contribution of the Rubis Terminal joint venture (JV) was recognized
under operations held for sale until the end of April, and under the equity
method as of 1 May. In a world hit by Covid, the Rubis Terminal JV
demonstrated a great deal of resilience, reporting a slight increase in
EBITDA (+2%): the lockdown led to a 70% drop in fuel consumption in France,
reducing the revenues generated from depot turnover, while the return of the
contango created high demand for capacity and led to the signing of new
contracts, notably in Turkey.
The Group's income statement recognizes the &euro83 million in capital gains
made from the sale of 45% of Rubis Terminal under operations held for sale,
while other operating income and expenses totalled -&euro74 million and
related notably to (i) an impairment loss of &euro46 million recognized for
the petroleum product distribution business (Caribbean), which resulted from
the political and economic developments that occurred in Haiti in the first
half of 2020, and (ii) a &euro24.6 million impairment loss on financial
assets, for which the company has determined a significantly increased
credit risk, based on a multi-factor analysis that takes into account the
local political and economic climate, in particular. In total, net income
(Group share) was down 11%, to &euro139 million.
Rubis's financial position as of 30 June indicates that the Group is
virtually debt-free, with &euro52 million in financial debt, compared with
&euro637 million as of 31 December 2019, thanks to Rubis Terminal's
restructuring and a sharp fall in working capital requirements.
RUBIS ??NERGIE: fuel distribution
The Rubis ??nergie division is responsible for the final distribution of all
fuel, LPG and bitumen products in the three regions: Europe, Caribbean and
Africa.
Diesel fuel prices were down 38% compared with the first half of 2019, with
a severe downturn as of January 2020. The current environment remains
conducive to improved margins, while contributing to an increase in customer
purchasing power.
General business operations were very much dominated by the strong negative
impact of Covid. The most resilient sectors have been those that cater most
closely to the needs of end consumers, such as the residential LPG cylinder
and mini-bulk segments. Morocco has been more deeply affected by Covid, with
both tourism and the productive sectors being directly exposed. In
Madagascar, although cylinder LPG has held up well, bulk LPG deliveries to
the mining sector continue to suffer due to the complete shutdown of
facilities.
Land (gas stations) and air transport were directly exposed to the
widespread lockdown, with aviation still in crisis having experienced a 50%
drop in global traffic (-71% and -66% at Rubis, respectively, as of end-June
and end-August).
Change in the volumes sold by region in H1 2020
(in '000 m3) H1 - 2020 H1 - 2019 Change Change at constant scope
Europe 402 465 -14% -14%
Caribbean 966 1,138 -15% -15%
Africa 1,111 1,006 10% -22%
TOTAL 2,479 2,610 -5% -17%
At &euro307 million, the gross sales margin for all products combined was
down 9%, with the unit margin growing 3% (on a like-for-like basis) driven
by changes in fuel product prices.
Sales margin of Rubis énergie for final distribution
Gross Breakdown Change Gross Change at
margin (in margin (in constant
&eurom) &euro/m3) scope
Europe 98 32% -5% 244 10%
Caribbean 112 36% -14% 116 2%
Africa 97 32% -8% 87 -5%
TOTAL 307 100% -9% 124 3%
The most material impact on the change in the gross margin during the second
quarter was caused by the drop in consumption and sales volumes. Of the
&euro44 million like-for-like drop in the gross distribution margin in Q2,
97% is attributable to the fall in volumes. On the whole, the effects of
inventory write-downs were offset by gains when oil product prices
recovered, as well as by increases in unit margins in regions where prices
are not regulated. The worst impact was felt in the area of white goods, and
notably aviation, where the sharp drop in sales did not allow for normal
inventory turnover.
In total, Rubis ??nergie generated EBIT of &euro130 million, a fall of 26%.
RUBIS SUPPORT AND SERVICES: refining, trading-supply and shipping
The results of the SARA refinery are governed by the application of a decree
setting profitability at 9% of shareholders' equity.
The trading-supply-shipping business processed a volume of 547,000 m3, thus
contributing EBIT of &euro38 million (+24%). This growth was mainly driven
by bitumen trading-supply operations, which took advantage of a favourable
context and, more generally, an increase in unit margins.
CONTRIBUTION OF THE RUBIS TERMINAL JV: storage of liquid products
The contribution of the Rubis Terminal JV appears under operations held for
sale up until the effective disposal of the shareholding. This includes a
net income contribution (&euro17 million) and capital gains on disposal
(&euro83 million). It is recognized under the equity method (&euro2.6
million) for the two months (May and June) during which the JV was
effectively operating.
In a world hit by Covid, the Rubis Terminal JV demonstrated a great deal of
resilience, reporting a slight increase in EBITDA (including 50% Antwerp) to
&euro43 million (+2%): the lockdown led to a 70% drop in fuel consumption in
France, reducing the revenues generated from depot turnover, while the
return of the contango created high demand for capacity and led to the
signing of new contracts, notably in Turkey.
After refinancing, the net income (Group share) of the Rubis Terminal JV
totalled &euro11 million, down 12%.
After closing on 30 June, the Rubis Terminal JV signed a protocol for the
acquisition of TEPSA, the market leader in storage in Spain (900,000 m3),
generating EBITDA of &euro28 million and strengthening Rubis Terminal's
positions in chemicals with an opening in the Mediterranean. The transaction
is set to be finalized in the fourth quarter.
Outlook
Barring a new lockdown period similar to that which affected the Group's
sales in Q2, business should continue to return to normal levels over the
second half of the year.
Bolstered by its strong financial position, the Group will continue to
explore development opportunities, both through organic and external growth.
At its meeting of 17 September, the company's Supervisory Board examined the
interim financial statements for the period ended 30 June 2020, after
approval by the Statutory Auditors.
Next publication:
Third quarter revenues on 5 November 2020 (after trading closes)
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September 17, 2020 11:35 ET (15:35 GMT)
