(AOF) – Rubis lifted the veil Thursday evening on its 2021 results. Thus, the downstream oil specialist published a net profit (group share) of 293 million euros (+ 4% compared to 2020) and current operating income of 392 million euros (+7%). Turnover amounted to 4.59 billion euros, up 18%.
“The results for the 2021 financial year show good operational performance and a strong recovery in activity, particularly in the regions most affected by the Covid-19 crisis in 2020-2021. While a normalization of the faster health situation had been anticipated, the group nevertheless managed to almost return to the level of pre-pandemic results and the net result achieved is even finally slightly above its expectations”, commented the Management, in the meeting of Supervisory Board.
Taking these elements into account, the dividend has been raised from 1.80 to 1.86 euros.
Regarding 2022, Rubis explains that the beginning of the financial year shows good developments both in volume and in net income.
The group says it is confident in its ability to generate growth in the medium and long term thanks, among other factors, to its geographic positioning in areas benefiting from strong demographic dynamics encouraging demand for energy, to the improvement of its business portfolio in East Africa and the rapidly expanding bitumen sector in Africa, driven by infrastructure needs.
In addition, Rubis clarifies that it has no operations or assets in Ukraine and does not source from Ukrainian or Russian suppliers. To date, the group says it has no direct exposure to this risk.
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Key points
– Number one in France for the storage of fuel oil and LPG (15% of the national market) and the distribution of LPG (5% of the market);
– Group with a turnover of €5.53 billion organized into 3 branches: energy distribution for 85%, supports and services for 15% and storage;
– Strong international presence, concentrated in the Caribbean for 35%, Africa for 35%, then Europe (France, Spain and Portugal) for 30%;
– Business model combining low exposure to the economic cycle, control of indebtedness and decentralization via short circuits and the autonomy of managers, 60% of invoicing coming from contracts adjusted to variations in the price of crude and maintaining a margin rate constant ;
– Split capital but not operable, due to the presence of general partners and managers with 2.46% of the capital (Gilles Gobin and Jacques Riou), the Marcel Dassault group being present with 5.33% of the shares);
– Very sound financial structure with free self-financing close to €300 million, resulting in regular growth in the dividend.
Challenges
– Growth driven by structural factors in the oil industry: ever-increasing complexity of logistics, increased regulation of standards in terms of storage and a tendency for the majors to sell distribution activities;
– Environmental strategy “Roadmap 2022-2025”: focused on risk prevention (water and soil pollution), site certification, limitation of air emissions and promotion of the use of LPG
– Good expertise in external growth, accelerated over the past three years: in the Caribbean with the acquisitions of the Sara refineries in Martinique and SRPP in Réunion, then Bermuda Gas in Bermuda and Dinasa in Haiti / in Africa: purchase of the logistics company Eres, operator in Nigeria, Senegal and Togo, assets of Total in Djibouti, of Galana in Madagascar, of Reatile in South Africa, of Repsol in the islands of Madeira and the Azores, then purchase of KenolKobil giving access to Burundi, Ethiopia, Uganda, Rwanda and Zambia;
Challenges
– Sensitivity to oil and gas prices, to climatic conditions for the distribution business, to the social climate in the French West Indies and to the political and economic situation in Africa and Turkey;
– State regulation of prices and margins in the DOM-TOMs;
– Forced exit from Iran and India in conjunction with US sanctions;
– At the end of September 2021, 9% increase in turnover;
– Waiting for new acquisitions in a deposit ranging from oil companies to privatizations and public agencies, thanks to a capacity of €1 billion;
– Expected strategic benefits of the entry of I Squared Capital to 45% in the capital of the subsidiary Rubis Terminal (storage);
– Share buyback program.