PRESS RELEASE

Paris, 8 September 2022, 5:45pm

 

H1 2022 RESULTS:

STRONG EARNINGS GROWTH: +20%

AND SOLID BALANCE SHEET

 

 

+20% increase in adjusted EPS amid challenging environment, first time consolidation of Photosol:

• H1 2022 volumes: 2,826 km3, +7% vs H1 2021 and 3% ahead of pre-Covid levels (H1 2019[1]).
• Strong unit profit[2] in the context of rising supply prices: +6% vs H1 2021.
• H1 2022 EBIT: €244m, +30% vs H1 2021, supported by all regions (+14% vs H1 2019).
• Adjusted net income[3]: €169m, +17% vs H1 2021, ahead of the record pre-Covid level of H1 2019 (+10% vs 2019 excluding Rubis Terminal).
• Adjusted EPS (diluted): €1.64, +20% vs H1 2021, ahead of the record pre-Covid level of H1 2019 (+5% vs 2019 excluding Rubis Terminal).
• Operational cash flow before changes in working capital[4]: €255m, +7% vs H1 2021 and +16% vs pre-Covid H1 2019 (excluding Rubis Terminal).
• Corporate net financial debt[5] (corporate NFD) at €1,102m, 2.1x corporate NFD/EBITDA pre-IFRS 16, vs €438m as of 31/12/2021. Increase in net debt is due to the completion of Photosol acquisition, outflow from changes in working capital and dividend payment.
• Net financial debt (NFD) at €1,436m, 2.6x net debt/EBITDA pre-IFRS 16, includes Photosol €334m non-recourse project debt at SPV level.

 

Outlook

The first half of the year has demonstrated excellent volumes and earnings growth. While all regions posted positive development, the Caribbean region was the main growth driver with strong recovery post-Covid and favourable comparison base. Whereas comparison base is set to normalise and current macro-environment is challenging, the Group is confident in solid earnings growth for the full year 2022.

In the mid-and long-term, the company should benefit from numerous growth drivers – newly added renewable energy segment as well as within its historical business. The latter has advantage of its exposure to regions with growing population and growing energy demand, portfolio improvement in Eastern Africa and exposure to bitumen in Africa considering the growing need for road infrastructure on the long term.

Given the current geopolitical environment, the Group reminds that it does not carry out any transactions in Ukraine or Russia and does not have any assets in these territories. In addition, it does not source from Ukrainian or Russian suppliers. To date, even if the Group has not identified any direct exposure to this risk, it will continue to monitor developments in the situation and their potential impact on its activities, as well as the indirect effects of the conflict on the sector’s global supply chain.

Paris, 8 September 2022 – Rubis is announcing its 2022 half-year financial results.

The Group’s condensed consolidated financial statements as of 30 June 2022 were reviewed by the Supervisory Board on 8 September 2022. 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: “Half-year results show an excellent operational performance across all regions. This is especially the case in the Caribbean region that has reported impressive growth above expectations.

Moreover, the company has accomplished its strategic entry into renewable energy segment with transformational acquisition of Photosol – one of the leading independent French solar companies and its first-time consolidation from 1st April 2022.

The timing of the Photosol acquisition is extremely interesting in the view of the Russia-Ukraine crisis, the predicted gas shortage and as a result the government’s initiatives to strengthen and accelerate the energy transition. The government in particular targets to reduce deadlines and adjust thresholds for the submission of building permits, with a particular focus on photovoltaic and wind energy.

With the development of over 3 GW pipeline, Photosol set to contribute to Rubis earnings growth in the mid- and long-term. Required investments are set to be debt-financed by Photosol on the project level.

As such, Rubis historical business with its strong cash flow generation will further sustain shareholder friendly dividend policy and value enhancing bolt-on acquisitions across all divisions”. 

First half of 2022 was excellent with 30% increase in EBIT to €244m exceeding record H1 2019 – pre-Covid level. All businesses have reported solid EBIT performance: Retail & Marketing with 26% increase in EBIT to €184m, Support & Services up 22% to €75m and first-time positive contribution from Photosol at €1m for three months, April to June 2022. Rubis Terminal JV has continued its steady growth with 3% in storage revenues and 4% in adjusted EBITDA in H1 2022 vs H1 2021. 

H1 2022 results have several non-recurring items both positives and negatives mostly due to the acquisition of Photosol (-€8m after tax) and divestment of the Turkey depot of the Rubis Terminal JV (+€11m after tax). Adjusted for non-recurring items and IFRS 2 charges, net income stands at €169m, +17% yoy and ahead of pre-Covid record H1 2019 (+10% excluding Rubis Terminal).

Operational cash flow before changes in working capital[6] reached €255m (+7% vs H1 2021 and exceeding pre-Covid H1 2019 level).

Acquisition of Photosol in April 2022 has an important impact on Rubis balance sheet. With excellent long-term visibility thanks to 20 years contract duration and very low risk profile, Photosol is able to finance its development pipeline with high debt leverage. It is important to note that the majority of the debt is non-recourse project debt at SPV level. Thus, going forward Rubis will communicate separately on its total financial debt and on its corporate financial debt (i.e., excluding non-recourse project debt).

Rubis corporate net financial debt (corporate NFD) increased to €1,102m by the end of H1 2022 (from €438m as of FY 2021) with corporate NFD/EBITDA pre-IFRS 16 at 2.1x. Dividend paid 100% in cash in June 2022 (€191m), acquisition of 80% stake in Photosol (€341m) and changes in working capital with increasing oil prices (€179m outflow) were the main factors behind the increasing debt. The Company has spent €97m on CapEx split between expansion maintenance (two thirds) and development (one third), including €12m of CapEx for Photosol in Q2 2022.

Consolidated financial statements as of 30 june 2022

(1) Renewable Energy – newly established division following acquisition of Photosol.

(2) Adjusted net income – excluding non-recurring items and IFRS 2.

(3) Cash flow from operations after financial expenses and taxes and before change in working capital.

 

The Retail & Marketing division (70% of Group EBIT[7]) includes the distribution of fuels (service-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 2021 with excellent development in East Africa (focus on the service-station network) and buoyant aviation driven by tourism and end of Covid-linked restriction measures.

Volumes sold by region in H1 2019-2021

 

Gross profit reached €367m, up 13% vs 2021, driven by both volume and solid unit margin development across all regions.

  

Retail & Marketing division gross and unit profit in H12022

 

• Europe, thanks to its strong LPG positioning and unit margin performance, reported EBIT of €46m, up 21% vs H1 2021, and above pre-Covid level in 2019 (€39m).
• The Caribbean region has seen marked improvement in H1 2022, driven by recovery in tourism/aviation, with both volumes and unit margin up double digit. Thus, EBIT was up 78% yoy to €58m.
• Lastly, Africa reported an excellent development in East Africa with double-digit EBIT growth thanks to the investments in the service-stations optimisation programme. Though partially offset by ongoing challenges in Madagascar, reported EBIT came in at €81m, only 6% increase yoy.

EBIT by ReGION H1 2019 – 2022

 

The Support & Services division (30% of Group EBIT[8]) posted +22% increase in EBIT to €75m supported by recovery in the Caribbean region with supply and shipping activities, strength of the bitumen sector and logistics in the Indian Ocean.

EBIT support & services IN H1 2019 – 2022

 

Newly established Renewable Energy division includes Photosol activities, acquired in April 2022, as well as the 18.5% stake in HDF Energy, acquired in June 2021. Creation of this division and future investments will enable the Group to achieve a target of 25% of its EBITDA in renewable energies in the medium term, with a minimum of 2.5 GW of installed photovoltaic capacity in France by 2030.

The accounts of Photosol have been included in the Group’s consolidation from 1st April 2022, i.e., for a period of three months to 30 June 2022.

REsults of the renewable energy divsion in h1 30 juin 2022

As of 30 June 2022, Photosol portfolio consists of:

• 476 MW secured portfolio – capacities in operations, under construction and awarded projects;
• development pipeline exceeding 3 GW, out of which 1,2 GW advanced development and tender ready projects and 2,3 GW in early stage.

The last CRE tender was a great success for Photosol with 100% of its bids awarded, or 25 MWp.

 

The Rubis Terminal JV has delivered solid performance with +3% storage revenue growth to €112m, with acceleration in Q2 2022 (+5%), driven by biofuel, chemicals and agri-food. Adjusted EBITDA has increased by +4% to €57m in H1 2022. With high financial leverage in place, share of Rubis underlying profit stood at €1.8m in H1 2022 vs €1.2m in H1 2021. With the sale of its activities in Turkey in January 2022, Rubis has recorded capital gain, that boosted reported share of profits to €11.4m. It is reminded that Rubis Terminal generates on annual basis free cash flow after tax, financial charges, and maintenance investment of €40-50m, which compared to total equity of €594m (for 100%) gives a cash return of 9%.

 

ESG

In 2022, Rubis actively pursues the implementation of its Think Tomorrow 2022-2025 Roadmap and its climate approach. In particular, the Group is assessing additional decarbonisation opportunities to align with a well-below 2°C trajectory, including developing an emission reduction target for scope 3A (i.e., excluding products sold) in addition to the one defined for scopes 1 and 2 (-30% in 2030, baseline 2019, Rubis Énergie perimeter at constant scope) and setting an internal carbon price that will help it guide its investments.

 

Webcast for the investors and analysts

Date: 8 September 2022, 6:00pm

Link to register for the webcast: https://channel.royalcast.com/rubisen/#!/rubisen/20220908_1

 

Participants from Rubis:

• Jacques Riou, Managing Partner
• Bruno Krief, CFO
• Clarisse Gobin-Swiecznik, Managing Director in charge of New Energies, CSR, and Communication

 

 

 

Next publication:

Q3 2022 trading update: 8 November 2022 (after market)

 

  

 

 

This document is a translation of the original French document and is provided for information purposes only. In all matters of interpretation of information, views or opinions expressed therein, the original French version takes precedence over this translation

 

 

Press Contact	Analyst Contact
RUBIS Communication department	RUBIS – Anna Patrice, Head of IR
Tel: +(33) 1 44 17 95 95 presse@rubis.fr	Tel: +(33) 1 45 01 72 32 investors@rubis.fr

 

appendix

Reconciliation of net income Group share to adjusted net income Group share

Composition of net debt/EBITDA excluding IFRS 16

Retail & marketing volume development by product in H1 2022

 

RETAIL & MARKETING VOLUME DEVELOPMENT BY REGION IN Q2 2022

Retail & marketing Gross profit IN H1 2019-2022

RETAIL & MARKETING unit PROFIT IN H1 2019-2022

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Asset (in thousands of euros)	30/06/2022	31/12/2021
Non-current assets
Intangible assets	74,537	31,714
Goodwill	1,809,943	1,231,635
Property, plant and equipment	1,666,946	1,268,465
Property, plant and equipment – right-of-use assets	220,729	166,288
Interests in joint ventures	322,026	322,171
Other financial assets	191,603	132,482
Deferred taxes	22,291	12,913
Other non-current assets	11,117	10,408
TOTAL NON-CURRENT ASSETS (I)	4,319,192	3,175,936
Current assets
Inventory and work in progress	825,627	543,893
Trade and other receivables	839,263	622,478
Tax receivables	30,213	21,901
Other current assets	66,493	23,426
Cash and cash equivalents	774,407	874,890
TOTAL CURRENT ASSETS (II)	2,536,003	2,086,588
TOTAL ASSETS (I + II)	6,855,195	5,262,524

 

EQUITY AND LIABILITIES (in thousands of euros)	30/06/2022	31/12/2021
Shareholders’ equity – Group share
Share capital	128,693	128,177
Share premium	1,550,157	1,547,236
Retained earnings	1,066,124	941,249
Total	2,744,974	2,616,662
Non-controlling interests	130,162	119,703
EQUITY (I)	2,875,136	2,736,365
Non-current liabilities
Borrowings and financial debt	1,409,694	805,667
Lease liabilities	194,525	138,175
Deposit/consignment	147,882	138,828
Provisions for pensions and other employee benefit obligations	40,596	56,438
Other provisions	80,751	159,825
Deferred taxes	93,892	63,071
Other non-current liabilities	84,434	3,214
TOTAL NON-CURRENT LIABILITIES (II)	2,051,774	1,365,218
Current liabilities
Borrowings and short-term bank borrowings (portion due in less than one year)	800,466	507,521
Lease liabilities (portion due in less than one year)	23,990	23,742
Trade and other payables	1,026,449	601,605
Current tax liabilities	43,184	23,318
Other current liabilities	34,196	4,755
TOTAL CURRENT LIABILITIES (III)	1,928,285	1,160,941
TOTAL EQUITY AND LIABILITIES (I + II + III)	6,855,195	5,262,524

 CONSOLIDATED INCOME STATEMENT

 

(in thousands of euros)	Chg.	30/06/2022	30/06/2021
NET REVENUE	60%	3,290,166	2,051,085
Consumed purchases		(2,554,483)	(1,422,864)
External expenses		(249,218)	(205,291)
Employee benefits expense		(111,042)	(107,495)
Taxes		(61,527)	(58,151)
EBITDA	22%	313,896	257,284
Other operating income		523	545
Net depreciation and provisions		(73,836)	(70,599)
Other operating income and expenses		3,383	961
CURRENT OPERATING INCOME	30%	243,966	188,191
Other operating income and expenses		(7,845)	3,375
OPERATING INCOME BEFORE SHARE OF NET INCOME FROM JOINT VENTURES	23%	236,121	191,566
Share of net income from joint ventures		11,912	1,247
OPERATING INCOME AFTER SHARE OF NET INCOME FROM JOINT VENTURES	29%	248,033	192,813
Income from cash and cash equivalents		4,695	4,691
Gross interest expense and cost of debt		(15,670)	(10,358)
COST OF NET FINANCIAL DEBT	94%	(10,975)	(5,667)
Interest expense on lease liabilities		(4,701)	(4,302)
Other finance income and expenses		(17,327)	(8,494)
PROFIT (LOSS) BEFORE TAX	23%	215,030	174,350
Income tax		(41,452)	(31,714)
NET INCOME	22%	173,578	142,636
NET INCOME, GROUP SHARE	25%	169,766	136,148
NET INCOME, NON-CONTROLLING INTERESTS	-41%	3,812	6,488

 

Earnings per share (in euros)	24%	1.65	1.33
Diluted earnings per share (in euros)	27%	1.65	1.30

 

 

 CONSOLIDATED STATEMENT OF CASH FLOWS

 

(in thousands of euros)	30/06/2022	31/12/2021	30/06/2021
TOTAL CONSOLIDATED NET INCOME FROM CONTINUING OPERATIONS	173,578	304,739	142,636
Adjustments:
Elimination of income of joint ventures	(11,912)	(5,906)	(1,247)
Elimination of depreciation and provisions	86,044	163,201	83,861
Elimination of profit and loss from disposals	(1,101)	(599)	1,168
Elimination of dividend earnings	(186)	(91)	(1,310)
Other income and expenditure with no impact on cash (1)	8,641	3,468	13,183
CASH FLOW AFTER COST OF NET FINANCIAL DEBT AND TAX	255,064	464,812	238,291
Elimination of income tax expenses	41,452	65,201	31,714
Elimination of the cost of net financial debt and interest expense on lease liabilities	15,676	21,140	9,969
CASH FLOW BEFORE COST OF NET FINANCIAL DEBT AND TAX	312,192	551,153	279,974
Impact of change in working capital*	(178,512)	(214,456)	(187,946)
Tax paid	(36,442)	(42,039)	(21,773)
CASH FLOWS RELATED TO OPERATING ACTIVITIES	97,238	294,658	70,255
Impact of changes to consolidation scope (cash acquired – cash disposed)	57,031
Acquisition of financial assets: Retail & Marketing division		(83,985)	(82,591)
Acquisition of financial assets: Renewable Energies division (2)	(341,122)
Disposal of financial assets: Retail & Marketing division		3,463	3,400
Disposal of financial assets: Support & Services division
Investment in joint ventures
Acquisition of property, plant and equipment and intangible assets	(96,890)	(205,682)	(89,946)
Change in loans and advances granted	(21,961)	(1,653)	(300)
Disposal of property, plant and equipment and intangible assets	3,118	8,733	3,770
(Acquisition)/disposal of other financial assets	(588)	(157)	(6)
Dividends received	12,739	20,298	1,417
Other cash flows from investing activities (5)	4,063		9,538
CASH FLOWS RELATED TO INVESTING ACTIVITIES	(383,610)	(258,983)	(154,718)

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

 

 

(in thousands of euros)	30/06/2022	31/12/2021	30/06/2021
Capital increase	3,441	6,995	7,024
Share buyback (capital decrease)	(4)	(153,160)	(103,950)
(Acquisition)/disposal of treasury shares	261	85	(5)
Borrowings issued	795,521	730,694	420,141
Borrowings repaid	(358,775)	(677,276)	(345,336)
Repayment of lease liabilities	(18,956)	(40,827)	(20,716)
Net interest paid (3)	(15,036)	(20,923)	(9,459)
Dividends payable	(191,061)	(83,577)
Dividends payable to non-controlling interests	(8,122)	(13,191)	(10,543)
Acquisition of financial assets: Retail & Marketing division
Disposal of financial assets: Retail & Marketing division
Acquisition of financial assets: Renewable Energies division	(1,238)
Other cash flows from financing operations (2)	(42,347)
CASH FLOWS RELATED TO FINANCING ACTIVITIES	163,684	(251,180)	(62,844)
Impact of exchange rate changes	22,205	8,811	(574)
Impact of change in accounting policies
CHANGE IN CASH AND CASH EQUIVALENTS	(100,483)	(206,694)	(147,881)
Cash flows from continuing operations
Opening cash and cash equivalents (4)	874,890	1,081,584	1,081,584
Change in cash and cash equivalents	(100,483)	(206,694)	(147,881)
Closing cash and cash equivalents (4)	774,407	874,890	933,703
Financial debt excluding lease liabilities	(2,210,160)	(1,313,188)	(1,331,940)
Cash and cash equivalents net of financial debt	(1,435,753)	(438,298)	(398,237)

(1) Including change in fair value of financial instruments, IFRS 2 expense, goodwill (impairment), etc.

(2) The impact of changes in the scope of consolidation is described in note 3.

(3) Net financial interest paid includes the impacts related to restatements of leases (IFRS 16).

(4) Cash and cash equivalents net of bank overdrafts.

(5) See note 15.

 

(*) Breakdown of the impact of change in working capital:
Impact of change in inventories and work in progress	(265,107)
Impact of change in trade and other receivables	(165,925)
Impact of change in trade and other payables	252,520
Impact of change in working capital	(178,512)

 

 

[1] Volumes H1 2022 at +3% vs H1 2019 at constant scope, i.e., excluding East Africa (KenolKobil acquisition).

[2] Unit margin or unit profit = gross profit per unit of distributed volumes.

[3] Adjusted net income – net income excluding non-recurring items and IFRS 2 charges, for more details see Annex. 

[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] Corporate net financial debt – net financial debt excluding non-recourse project debt at SPV (special purpose vehicle) level. Corporate net debt/EBITDA is the ration of corporate net debt to EBITDA pre-IFRS16 and excluding Photosol SPV EBITDA.

[6] Operational cash flow before changes in working capital (French “Capacité d’autofinancement”) = cash flow after taxes, net interest costs and before change in working capital.

[7] 70% of Group EBIT before Holding costs in FY 2021.

[8] 30% of Group EBIT before Holding costs in FY 2021.