(BFM Bourse) – The specialist in energy distribution and storage infrastructure delivered a net result higher than expectations. The company expects its profit to be stable this year.
A quality mid-cap market, Rubis is taking care of its stock market shine. The group specializing in energy distribution and storage infrastructure recorded a nice increase this Friday, gaining 7.5% around 5 p.m.
The company published solid results for 2023. The revenues of the company, which is very present in Africa and the Caribbean, fell by 7% but its other financial parameters increased very significantly.
Gross operating income (Ebitda) increased by 19% year-on-year to reach almost 800 million euros. Current operating profit stood at 621 million euros, up 22% year-on-year.
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A profit above expectations
Net profit stood at 354 million euros, up 35% over one year. Oddo BHF notes that this profit turns out to be much higher than expectations, the consensus being at 311 million euros for the net result.
“This good surprise”, notes the research office, “comes mainly from the Caribbean zone with an increase of 45% in current operating income within (the division) Retail & Marketing”, that is to say the distribution of liquefied gases in bulk and in bottles in service stations as well as to professionals (construction, industry, agriculture, etc.).
In this region, which represents 40% of the division’s operating profit, Rubis indicated that it had recorded 5% growth in volumes which “follows two consecutive years of double-digit growth”.
Strong exposure to certain countries
“Operating conditions were optimal, with market share gains and a strong increase in margins in all segments (+10%), leading to an exceptional increase in current operating income. (…) Guyana, Jamaica, Grenada and Antigua, as well as a relative recovery in Haiti, contributed to this strong increase in results,” said Rubis.
For 2024, Rubis anticipates “normalization” in this region in energy distribution. More broadly, the group expects a gross operating profit of between 725 million euros and 775 million euros and a stable net profit.
“Rubis surprises us with the quality of its results in 2023,” concludes Oddo BHF, which increased its price target to 30 euros from 25 euros. The research office, however, maintained its “neutral” opinion on the value. Oddo BHF cites value risks “associated with a strong presence in exotic countries and governance in transition”.
“The absence of synergies between activities (energy distribution, production of renewable electricity and storage of liquid products) also constitutes a downside to the file,” explains Oddo BHF.
Julien Marion – ©2024 BFM Bourse
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