DJ RUBIS: Q4 2022 trading update, stable volumes, solid gross profit growth
RUBIS RUBIS: Q4 2022 trading update, stable volumes, solid gross profit growth 07-Feb-2023 / 17:45 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, 7 February 2023, 17:45 CET
Q4 2022 TRADING UPDATE*
Stable volumes,
SOLID gross profit growth
-- ROBUST OPERATING PERFORMANCE ILLUSTRATING THE SOLIDITY OF THE BUSINESS MODEL
-- DOUBLE-DIGIT GROWTH YOY IN RUBIS éNERGIE GROSS PROFIT
-- RUBIS PHOTOSOL: FIRST BOLT-ON ACQUISITION IN THE ROOFTOP SEGMENT (2022) AND FIRST CORPORATE PPA (2023)
Fourth quarter 2022 has seen continuing growth of gross profit at Rubis Énergie, development of Rubis Renouvelables, and excellent growth of JV Rubis Terminal:
-- Rubis Énergie showed steady activity growth supported by:? Retail & Marketing: stable volumes in Q4 2022 yoy, excluding the impact of deterioration in Haiti.Reported volumes stood at -3% in Q4 2022 vs Q4 2021, though decline was offset by strong unit profit.Underlying[1] gross profit increased by 11% yoy in Q4 2022 (+21% yoy FY 2022), - Support & Services[2]: after an exceptionally strong first half, Q3 and Q4 2022 normalised in termsof volumes (Q4 2022: +3%, FY 2022: +18% yoy) and gross profit in supply/shipping segment (Q4 2022: +1% yoy, FY2022: +15% yoy);
-- Rubis Renouvelables: revenues came in at EUR7m with an installed capacity of 384 MWp. Q4 was marked by thedevelopment of Rubis Photosol with the bolt-on acquisition of Mobexi assets (to be consolidated from 2023),expanding solar portfolio to the rooftop segment. Moreover, the management has been working on its first corporatePPA agreement (with Leroy Merlin) which was signed at the end of January 2023 and positions Rubis Photosol in thisgrowing segment;
-- Rubis Terminal JV (accounted for using the equity method) storage revenue stood at EUR64m with growthaccelerating to +11% yoy[3] in Q4 2022, supported by double-digit increase in biofuels, agrifoods, and chemicals(FY 2022: EUR235m, +5.5% yoy).
Q4 2022 Group sales came in at EUR1,785m with 33% increase yoy, mostly boosted by rising oil prices yoy. Sales breakdown by segment and region is presented in the table below. As a reminder, Rubis Énergie passes on changes in oil price to its clients. Thus, the level of activity of this business should be analysed through volume and unit margin.
Change Change Revenue (in EURM) Q4 2022 vs Q4 2021 FY 2022 vs 2021 1,778 33% 7,085 54% Rubis Énergie 1,489 27% 6,044 51% - Retail & Marketing 199 -1% 832 22% -- Europe -- Caribbean 612 21% 2,561 55% -- Africa 678 46% 2,651 65% - Support & Services 289 74% 1,041 75% Rubis Renouvelables[4] 7 - 334 - Consolidated revenue 1,785 33% 7,118 55%
RUBIS ÉNERGIE
Rubis Énergie incorporates the Retail & Marketing of fuels (in service stations or for professionals), lubricants, liquefied gases and bitumen, as well as the logistics behind the Retail & Marketing activity through Support& Services, grouping together SARA refinery, trading/supply and shipping operations. - RETAIL & MARKETING (85% OF RUBIS ÉNERGIE REVENUE)
The Retail & Marketing operates in three geographic areas: Europe, the Caribbean and Africa.
The fourth quarter of 2022 has seen flat volume development growth (excluding Haiti) and excellent unit profit development, supporting +11% yoy increase in underlying gross profit (FY 2022: +21% yoy).
The table below provides volumes split by region for Q4 and FY over 2019-2022. It provides the comparisons of 2022 vs 2019 on a like-for-like basis.
VOLUMES SOLD BY REGION IN Q4 OVER 2019-2022
(in '000 m3) 2022 2021 2020 2019 2022 2022 2022 vs 2019 vs 2021 vs 2019 excl. aviation Europe 219 236 228 234 -7% -7% -7% Caribbean 520 555 508 595 -6% -13% -15% Africa 616 611 598 645 +1% -4% +12% TOTAL 1,355 1,402 1,334 1,474 -3% -8% -2%
VOLUMES SOLD BY REGION IN FULL YEAR OVER 2019-2022
(in '000 m3) 2022 2021 2020 2019 2022 2022 2022 vs 2019 vs 2021 vs 2019 excl. aviation Europe 856 872 816 900 -2% -5% -5% Caribbean 2,173 2,070 1,963 2,298 +5% -5% -4% Africa 2,458 2,459 2,269 2,296 0% +8%* +10%* TOTAL 5,487 5,401 5,049 5,494 +2% -1% 0%
*2022 vs 2019 on a like-for-like basis excluding acquisition in East Africa (consolidated from 01 April 2019).
Q4 regional development - key take-aways
-- Europe: volumes decreased by 7% to 218,700 m3 (FY 2022: -2% yoy), affected by an unusual warm winter(-22% temperature index) as well as a high comparison basis with last year.
-- Caribbean: volumes stood at 519,900 m3, -6% yoy (FY 2022: +5%). Excluding Haiti, volumes increased by 3%,supported by tourism and aviation recovery (+20% yoy) and good development in the service-station network (+4%).The regional unit profit was supported by product/country mix and falling oil prices quarter over quarter and theCaribbean region reported excellent gross profit growth in Q4 2022 and overall for FY 2022. This performance wasoffset by the rapid deterioration of the safety and economic situation in Haiti from September 2022, resulting in a40% decline in volumes. Gross profit remained subdued in Haiti in Q4 2022.
-- Africa: volumes came in at 616,000 m3 with +1% increase yoy (FY 2022: 0% yoy, adjusted for aviation:+3%). East Africa continues its effort on the optimisation and investment in the service-station network with 12%increase in volumes in service stations and marked improvement in gross profit in Q4 2022 yoy. Optimisation of theaviation contracts in Kenya to improve the margins have yielded positive earnings impact despite negative impact onvolumes for FY 2022 (stable aviation volumes in Q4 2022). Bitumen has seen some improvement (+2% volume growth) inQ4 after heavy rainy season in Q3 2022 (vs almost dry season last year). - SUPPORT & SERVICES (15% OF RUBIS ÉNERGIE REVENUE)
The Support & Services business recorded total revenue of EUR289m (+74% yoy) for the Q4 2022 period, driven by increasing yoy oil prices (+51% in Q4).
After an exceptional first half and in line with Q3, Q4 2022 has seen both volumes and profits normalise with +3% volume growth in Q4 2022 (FY 2022: +18%). Gross profit of supply/shipping segments was stable (+1% yoy) following strong growth in the first nine months, leading to a 15% increase for FY 2022. The remainder of the division (SARA refinery and logistics operations) benefits from specific business models with almost stable earnings profile.
RUBIS RENOUVELABLES
Rubis Renouvelables division includes Rubis Photosol activities, acquired in April 2022, as well as the 18.5% stake in HDF Energy.
The accounts of Rubis Photosol have been included in the Group's consolidation from 1st April 2022, i.e., for a period of nine months to 31 December 2022. Business seasonality is significant with generally strong Q2 and Q3 in terms of electricity production given higher number of sun hours compared to Q1 and Q4.
Operational data Q2 2022 Q3 2022 Q4 2022 Assets in operation (MWp) 330 368 384 Electricity production (GWh) 139 140 60 Sales (in EURm) 12 13 7
Rubis Photosol has increased its secured portfolio to 503 MWp at the end of 2022 vs 462 MWp vs 31/12/2021. The development pipeline reaches 3.5 GW, of which 1.4 GW are in advanced development phase.
Expanding photovoltaic offering with the acquisition of Mobexi's assets, a French specialist in rooftop panels, in November 2022. Thus, Rubis Renouvelables is establishing itself as a reference player for all types of photovoltaic installations from 0.1 MWp to 3 MWp on new buildings, existing roofs, or car parks, right up to large-scale ground-mounted plants of over 3 MWp.
RUBIS TERMINAL JV (accounted for using the equity method)
Q4 2022 has been another strong quarter with storage revenue acceleration to +11%4 yoy (up from +4% in 9M 2022), supported by chemicals (+13%) and agrifoods (+50% yoy). Fuel revenues saw +6% growth driven by 22% increase in biofuels and +2% in fuels. FY 2022 storage revenues stood at EUR235m (+5.5%[5] yoy).
-- In France (+11% in Q4 2022, +5% in FY 2022) storage revenues came in at EUR120m for FY 2022 with animproving performance in fuels(double-digit growth in biofuels and stable non-biofuels), strong demand for agrifoodstorage and ongoing strength in the chemicals.
-- In Spain (+14% in Q4 20022, +11% in FY 2022) reported storage revenues reached EUR65m for FY 2022. Strongmomentum continues in the region driven by biofuels and petrochemicals.
-- In the ARA zone - Rotterdam and Antwerp (+6% in Q4 20022, stable FY 2022) FY 2022 storage revenuesreached EUR50m. Demand remains strong with close to 100% capacity utilisation. A new biofuel storage contract (toreplace heavy fuel oil) started in September 2022 and contributes to the revenue growth acceleration. As areminder, it has required the immobilisation of the installations for adaptation work, generating a deferral ofrevenue in the first nine months of 2022.
ESG HIGHLIGHTS
In line with Rubis' CSR Roadmap Think Tomorrow 2022-2025, Rubis Énergie entered in January 2023 into four bank agreements to add sustainability-linked criteria to its existing revolving credit lines.
These first refinanced sustainability-linked loans amount to a total of c. EUR255m and their maturities range from 2024 to 2029. Their margins are directly linked to the achievement of two or three of the Company's most material ESG KPIs actions. These are the reduction of its direct carbon emissions (scope 1 and 2 CO2 emissions), carbon intensity of operation, and the reduction of scope 3A emissions.
The credit lines have been granted by two global financial institutions, Crédit Agricole CIB and Citi.
OUTLOOK
2022 has ended on a strong note with stable volumes and excellent gross profit development supported by the Caribbean region and Africa in Q4. The latter has benefited from improving performance of the operations in East Africa thanks to investments in the retail network, as well as Government agreement in Madagascar. The Group is confident in its capability to generate robust operational earnings growth for the full year 2022.
Conference call for investors and analysts
Date: 7 February 2023, 18:00-19:00 CET
Speaker: Bruno Krief, CFO
Link to register: https://register.vevent.com/register/BIc517645210184b538c8af1ff9d1281f2
Next events
FY 2022 Results: 16 March 2023 (after market close)
Q1 2023 Trading update: 4 May 2023 (after market close)
Annual Shareholders' Meeting: 8 June 2023, 14:00 CET
Press Contact Investors Contact RUBIS Investor Relations department RUBIS Communication department Anna Patrice Tel: +(33) 1 45 01 72 32 Clémence Mignot-Dupeyrot Tel.: +(33) 1 45 01 87 44 Tel: +(33) 1 44 17 95 95 investors@rubis.fr presse@rubis.fr
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* All figures presented in this press release are unaudited.
[1] Underlying gross profit growth - adjusted for Government agreement in Madagascar in Q4 2022 for the previous periods and for the bitumen FX pass through.
[2] Support & Services comprises supply/shipping as well as logistics and SARA refinery (regulated).
[3] Including 50% of Antwerp JV and on a proforma basis (excluding Turkey terminal sold in January 2022).
[4] Includes Rubis Photosol from 01 April 2022.
[5] Including 50% of JV Antwerp and on a proforma basis (excluding Turkey terminal sold in January 2022).
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Regulatory filing PDF file File: RUBIS: Q4 2022 trading update, stable volumes, solid gross profit growth
=-------------------------------------------------------------------- Language: English Company: RUBIS 46, rue Boissière 75116 Paris France Phone: +33 144 17 95 95 Fax: +33 145 01 72 49 E-mail: investors@rubis.fr Internet: www.rubis.fr ISIN: FR0013269123 Euronext Ticker: RUI AMF Category: Inside information / Information on annual revenues EQS News ID: 1554079 End of Announcement EQS News Service =------------------------------------------------------------------------------------
1554079 07-Feb-2023 CET/CEST
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February 07, 2023 11:45 ET (16:45 GMT)