DJ RUBIS: Ongoing normalisation of the results - Growth drivers intact
RUBIS RUBIS: Ongoing normalisation of the results - Growth drivers intact 09-Sep-2021 / 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.
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Paris, September 9, 2021, 5:35pm
ONGOING NORMALISATION OF THE RESULTS
GROWTH DRIVERS INTACT
Strong half-year results despite ongoing COVID restrictions:
-- H1 2021 volumes 2,650K m3, +7% vs H1 2020 and +2% vs H1 2019. Q2 2021 volumes 1,329K m3, +24% vs H1 2020,though 7% behind Q2 2019 at constant scope (-2% adjusted for aviation and at constant scope);
-- Stable unit margin[1] in the context of rising supply prices: +2% vs H1 2020 and -1% vs H1 2019 (atconstant scope);
-- H1 2021 EBIT EUR188m, +10% vs H1 2020, -12% vs H1 2019 given ongoing COVID restrictions;
-- Adjusted net income EUR132m, +33% vs H1 2020, -11% vs H1 2019 (excluding non-recurring items and excludingRubis Terminal)
-- Operational cash flow before changes in working capital[2] EUR238m, +21% vs H1 2020 and 8% above pre-COVIDH1 2019 (adjusted for Rubis Terminal).
-- Net debt EUR398m, 0.8x net debt/ EBITDA, vs EUR180m as of 31.12.2020 due to first tranche of the sharebuyback programme (EUR104m), EUR80m investment in HDF Energy, outflow from changes in working capital EUR178m givenincrease in oil price (inflow of EUR113m as of 31.12.2020)
-- ESG update: publication of CSR Roadmap 2022-2025; completing CDP climate questionnaire (with report dueend of 2021); adhesion to UN Global Compact.
Outlook
In the beginning of 2021, the Group anticipated an easing of restrictions linked to Covid in the second half of the year. While it is evident that the effects of the Covid will continue for the rest of the year, the good momentum of Rubis Énergie (Retail & Marketing and Support & Services) should nonetheless continue with growth of its in net operating result in 2021.
Paris, September 9, 2021 - Rubis today announces its 2021 half-year financial results.
The Group's condensed consolidated financial statements as of 30 June 2021 were reviewed by the Supervisory Board on 9 September 2021. The Group's Statutory Auditors have performed their review of these financial statements and their report on the half-yearly financial information was issued on the same date.
During the Supervisory Board meeting, the Management Board commented on the results: "The half-year report shows a good operational performance and results, particularly in the regions, which have seen an easing of restrictions due to Covid.
While a more rapid normalisation had initially been anticipated, the Group is confident that the current growth momentum will be maintained, with its medium and long-term growth drivers remaining intact thanks to its product and geographic diversification, the balance of its midstream/downstream activities and the strong development potential of East Africa, bitumen and LPG (transitional energy).
Supported by its strong financial position, the Group will continue to explore development opportunities, both through organic and external growth".
H1 2021 continued to be affected by Covid-19, the vaccination campaigns have not been harmonized on a global scale and the appearance of new variants have led to new restrictions with intensities different from country to country.
The period was marked by the sharp rise in oil prices (+ 40%), the deterioration of the situation in Haiti, which nevertheless opened up new prospects, the excellent performance of the bitumen business and the continuous improvement of indicators in Eastern Africa (volumes and profitability).
The Covid-19 effect measured in terms of loss of profit (EBITDA) compared to 2019 amounted to EUR18 million. This estimate was calculated by comparing the volumes achieved in the first half of 2021 with those of the first half of 2019, on a like-for-like scope, in the main segments affected by the pandemic.
In this context, 10% EBIT growth vs H1 2020 and decline limited to 12% vs H1 2019 (pre-Covid year) represent good performance. Net profit for the half year was down 2% on 2020, impacted by the increase (EUR7m) in the accounting charge (non-cash) for the benefits granted to the Group's employees in the form of share-based payments.
As a reminder, the net income for the first half of 2020 was impacted by significant non-recurring items[3]. Consequently, the comparison with 2019 results from continuing operations provides a more appropriate measure of performance, with a decline limited to 11% (excluding the contribution of Rubis Terminal and non-recurring items).
Operational cash flow before changes in working capital[4] reached EUR238 million (+21%) and exceeded the record level reached in 2019 (excluding Rubis Terminal at EUR220 million in H1 2019), confirming the quality of results.
CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 JUNE 2021
(in millions of euro) 2021 2020 2019 2021 2021
vs 2020 vs 2019
Revenue 2,051 2,051 2,583 0% -21%
EBITDA 257 240 271 7% -5%
EBIT, of which 188 170 215 10% -12%
Retail & Marketing 146 130 176 13% -17%
Support & Services 61 52 51 18% 20%
Net income, Group share, of which 136 139 157 -2% -13%
Net income from continuing operations, 136 39 143 250% -5%
Group share
Net income from operations held for sale,
0 100 14 -100% -100%
Group share
Net income, Group share, excluding non-recurring items and Rubis Terminal 132 99 148 33% -11%
Operational cash flow* excl. Rubis Terminal 238 196 220 21% 8%
Capital expenditure excl. Rubis Terminal 90 103 80
The Retail & Marketing division includes the distribution of fuels (gas station networks), liquefied gases, bitumen, commercial fuel oil, aviation, marine and lubricants in three geographic areas: Europe, the Caribbean and Africa.
Overall, volumes are +7% compared to H1 2020 and -6% vs H1 2019 on a like-for-like basis. The table below shows resistance of the LPG and service station network segments (70% of the division gross profit) to Covid, while aviation volumes remain particularly impacted. The bitumen sector reports a very strong growth momentum.
VOLUME DEVELOPMENT BY SEGMENT
Breakdown H1 2021 by Volume change H1 2021 vs
Gross profit Volumes H1 2020 H1 2019
(constant scope)
LPG 43% 23% 2% -4%
Service stations 26% 36% 15% -4%
Bitumen 12% 10% 59% 58%
Commercial 11% 22% -3% -3%
Aviation 5% 7% -12% -58%
Others 2% 2% -23% -45%
TOTAL 100% 100% 7% -6%
CHANGE IN VOLUMES SOLD BY REGION IN THE FIRST HALF OF 2021
(in '000 m3) 2021 2020 2019 2021 2021
vs 2020 vs 2019 (isoperimeter)
Europe 439 402 465 9% -6%
Caribbean 983 966 1,138 2% -14%
Africa 1,228 1,111 1,006 11% 8%
TOTAL 2,650 2,479 2,609 7% -6%
Gross profit reached EUR324 million, up 9%, with a unit profit +2%, despite the sharp increase in the oil prices (+40%).
RETAIL & MARKETING GROSS PROFIT
2021
Gross profit 2021
Breakdown vs. 2019
(in EURm) vs. 2020
(isoperimeter)
Europe 102 32% 4% +1%
Caribbean 96 30% -14% -27%
Africa 125 39% 43% 18%
TOTAL 324 100% 9% -6%
-- Europe, thanks to its strong LPG positioning, reported EBIT of EUR38m, up 8% vs H1 2020, almost back to thepre-Covid level in H1 2019 (EUR39m).
-- The Caribbean region, marked by the deteriorated situation in Haiti and the temporary decline in margins,recorded a 33% decline in EBIT to EUR33m (H1 2020: EUR49m, H1 2019: EUR68m), a level that nonetheless marked stabilitycompared to H2 2020.
-- Lastly, Africa reported an excellent performance with EBIT of EUR76m (+64% vs H1 2020 (EUR46m) and abovepre-Covid levels (H1 2019: EUR69m)), driven by (a) the robust development of the bitumen business in terms ofvolumes, with expansion in new markets, and in terms of profits, (b) improving volumes and profitability in Kenyathanks to the commercial investments and rebranding, as well as (c) strong rebound observed in the Indian Ocean(Madagascar and Reunion Island) penalised by the stock effects in 2020.
The Support & Services division posted a record result for the period with EBIT up 18% to EUR61m thanks to the good margins generated by the trading and shipping activities and the strong development of the bitumen sector (compared with EUR52m in H1 2020 and EUR51m in H1 2019).
The Rubis Terminal JV successfully integrated Spanish storage leader Tepsa and again demonstrated resilient growth with a 41% increase in EBITDA[5] to EUR61m (+5% on a pro forma[6] basis) vs. EUR43m in H1 2020 and EUR41m in H1 2019. The good performance of biofuels and chemicals, together with the increase in capacity in the ARA region and a high capacity utilisation rate (95%), supported the growth in EBITDA. Overall, the share of net income from JV (EUR1.2m) was down after the effect of PPA (purchase price allocation) amortisations related to the 2020 acquisitions and higher financial charges in line with the existing debt structure.
ESG - Highlights
Rubis continues its actions in the field of energy transition and is fully integrating CSR issues into its activities, in particular by:
-- the launch of a study to accelerate the decarbonisation of its activities, including the setting of aninternal carbon price;
-- the publication of its first CSR roadmap 2022-2025 built around three axes and including 19 indicators (https://www.rubis.fr/fr/rse/la-demarche-rse-de-rubis);
-- joining the United Nations Global Compact in August 2021.
Webcast for the investors and analysts
Date: Thursday 9 September 2021, 5:30pm
Participants:
-- Jacques Riou, Managing Partner
-- Bruno Krief, CFO
-- Clarisse Gobin-Swiecznik, Managing Director
-- Jean-Christian Bergeron, Managing Director East Africa
Link to register for the webcast: https://channel.royalcast.com/rubisfr/#!/rubisfr/20210909_1
Next publications:
Publication of Q3 2021 trading update: 9 November 2021 (after market)
About Rubis
Rubis, listed on Euronext Paris with a market capitalisation of nearly EUR3.5 billion at the end of August 2021 (SBF 120), specialises in the distribution of energy and bitumen, from supply to the end customer, and, through its JV Rubis Terminal, in the storage of liquid products.
Rubis has a strong position in the distribution of liquefied gases, considered in emerging markets as transitional energy, and bitumen, focusing on infrastructure projects in West Africa.
With a 2020 revenue of 3.9 billion euros and distributed volumes of 5 million m3, the Group is recognised in the market for its know-how and the quality of its services.
Its international development strategy enables the Group to hold strong market positions in diversified products and segments in 41 countries in three geographical areas: Africa/Indian Ocean, Caribbean and Europe. Over the past ten years, Rubis has achieved a 9% compound annual growth rate in earnings per share and dividend per share.
Press contact Analyst contact PUBLICIS CONSULTANTS - Aurélie Gabrieli RUBIS - Anna Patrice, Head of IR Tel: +(33) 1 44 82 48 33 Tel: +(33) 1 45 01 72 32 aurelie.gabrieli@publicisconsultants.com investors@rubis.fr
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[1] Unit margin = gross profit per unit of distributed volumes at constant scope
[2] Operational cash flow before changes in working capital (French "Capacité d'autofinancement") = cash flow after taxes and net interest costs and before change in working capital
[3] Significant non-recurring items in the first half of 2020 mainly relate to the capital gain on the disposal of 45% of Rubis Terminal for EUR83m, the impairment of assets in Haiti for EUR46m, and an impairment of financial assets for EUR17m net of tax.
[4] Operational cash flow before changes in working capital (French "Capacité d'autofinancement") = cash flow after taxes and net interest costs and before change in working capital
[5] Including JV Antwerp at 50 %.
[6] Pro-forma = including Tepsa as of 01.01.2020
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Regulatory filing PDF file File: RUBIS: Ongoing normalisation of the results - growth drivers intact
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Language: English
Company: RUBIS
46, rue Boissière
75116 Paris
France
Phone: +33 144 17 95 95
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: 1232483
End of Announcement EQS News Service
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1232483 09-Sep-2021 CET/CEST
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September 09, 2021 11:35 ET (15:35 GMT)
