Rubis: Penalized by difficulties in Kenya, Rubis sees its profitability fall

(BFM Bourse) – The current operating profit of the group specializing in energy distribution fell by 20% over the first six months of the year, due to exceptional items.

Tough session for Rubis. The specialist in energy distribution (fuel, LPG, bitumen) fell by 10.2% this Friday around 4:30 p.m., showing one of the biggest declines in the SBF 120.

The company’s half-year results are being punished by the market. For the period from January to the end of June, Rubis generated revenues of 3.34 billion euros, stable over a year. Its current operating income suffered, however, falling by 20% to 257 million euros.

Several exceptional items make the year-on-year comparison somewhat worse. In the first half of 2023, for example, Rubis received an exceptional payment of €11 million from Madagascar linked to a shortfall in 2022, when the country capped energy prices.

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A lack of dynamism

“The first half of 2023 was marked by exceptional elements in Madagascar and Kenya, leading to a particularly high basis of comparison on retail gross margins (fuel distribution, editor’s note)”, the company indicates in this regard.

Rubis also said it suffered from “pressure” in the distribution of fuel in Kenya, with protests, floods and the country’s economic slowdown.

The group’s net profit fell by 24% over the year to 130 million euros.

In terms of its outlook, Rubis confirmed that it is targeting gross operating income of between 725 million and 775 million euros for 2024.

For Oddo BHF, this publication confirms “the lack of momentum (dynamism)” in the group’s activity. The research office lowered its price target to 35 euros from 39 euros and reiterated its advice to “neutral”.

“The strategy implemented so far is not bearing fruit, which could encourage shareholders with an activist profile to increase their pressure,” the research office suggests.

In March, the famous businessman Vincent Bolloré had entered the group’s capital by taking 5%, which had propelled the company’s share price. The market had appreciated the announcement because Vincent Bolloré is known for having an excellent track record in his stock market shareholdings. Businessmen Patrick Molis and Ronald Sämann had also exceeded 5% of the capital in the process.

Last June, Patrick Molis had tried to renew a large part of the Rubis board of directors and thus impose a palace revolution. But his proposals had all been rejected by Rubis shareholders at a general meeting, albeit by a relatively small majority. Ronald Sämann joined the board.

Julien Marion – ©2024 BFM Bourse