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Rubis: rubis reports strong earnings growth for full-year 2007


Rubis reports strong earnings growth for full-year 2007

- 17% jump in revenue to €851.9 million - 22% expansion in net operating income to €53.7 million - 38% rise in net profit from continuing operations to €37.5 million - 14.5% increase in the dividend payout

Rubis generated strong earnings growth in 2007, despite soaring raw materials costs and unfavourable weather conditions. The company was able to overcome these challenges thanks to its balanced business model and regional diversification.

(million €)  2006  2007  Change  
Revenue  728.5  851.9  17%  
Gross operating income  64.0  79.8  25%  
Net operating income  44.2  53.7  22%  
Attributable net profit from continuing operations  27.3  37.5  38%  
Attributable net profit  30.5  37.5  23%  
Free cash flow  49.8  68.2  37%  
Capital expenditure  43.2  64.5  -  

The company's 2007 data include the Bermuda operations acquired in October 2006, the European LPG businesses acquired in H1 2007, and the Rotterdam and Anvers terminals.

- Revenue jumped 17% to €851.9 million in 2007. At constant scope, revenue remained essentially flat at €716 million. - Net operating income grew 22%, or 17% at constant scope. - Attributable net profit from continuing operations surged 38% to €37.5 million. At constant scope, the increase was 23%. - Capital expenditure totalled €64.5 million, and was related primarily to maintenance and renovation work at Dunkerque and Norgal, the new terminals at Rotterdam and Anvers, and purchases. - Equity rose from €344 million to €430 million, and includes the proceeds from a €50 million share issue carried out in June 2007. - Debt edged up from €82 million to €93 million, shrinking the debt-to-equity ratio to 22%.

2007 Business review

- Rubis Terminal - Bulk liquid storage

Rubis Terminal secured a foothold in the ARA region (Amsterdam, Rotterdam, and Anvers), one of the largest port regions in the world, with the construction of a storage terminal in Rotterdam for chemicals and petroleum products. The first section will go into service in May 2008, and will provide over 80,000 m3 of storage capacity.

Rubis also owns an 8 ha site at the Anvers port and is working with Mitsui of Japan to build a new, 100,000 m3 petrochemicals warehouse. Work is scheduled to begin in late 2008 for start-up by end-2009.

Revenue from the bulk liquid storage business grew 8% in 2007. Net operating income edged up 3% to €26 million; however, after adjusting for the large construction projects at Rotterdam and Anvers and non-recurring maintenance work at Dunkerque, net operating income rose 14%.

Thanks to its strategic locations, substantial capital expenditure (€36 million in 2007, including €23 million for the Rotterdam terminal), and steady revenue growth, Rubis Terminal is well-poised to benefit from growing international trade - especially in the biofuels sector - and enhance its leadership position.

- Rubis Energie - LPG and petroleum product distribution

In the first half of 2007, Rubis Energie reinforced its presence in Europe by acquiring five LPG distribution businesses from Shell. Rubis Energie also teamed up with BP in France to form Frangaz, a joint venture designed to penetrate the market for LPG cylinders sold in hypermarkets and provide a novel approach to the lucrative retail sector. Frangaz has already won contracts to supply Intermarché and Casino with butane and propane cylinders to be sold under the Energaz and Casino brands, respectively.

Revenue at Rubis Energie soared 28% in 2007, fuelled by the introduction of the Vito brand in the Caribbean, the successful integration of the Bermuda operations, and buoyant sales in Africa. These factors largely offset weakness in France in the first half of the year due to unfavourable weather conditions. Net operating income at Rubis Energie climbed 36%, or 24% at constant scope.

These strong results underscore Rubis' ambition and ability to further expand into the rapidly-changing downstream oil and chemicals industries worldwide.

Based on its earnings for the full-year, the company will propose a dividend of €2.45 per share, a 14.5% increase from 2006, at the General Meeting on 12 June 2008.

Next trading update: Q1 2008 revenue on 14 May 2008

Press Contact Annie Fournier Comfidance +33 (0)1 56 21 20 14 a.fournier@comfidance.com

Analyst Contact Bruno Krief Rubis +33 (0)1 44 17 95 95