Rubis: Q3 & 9M 2023 trading update - Solid operating growth
across the board
Paris, 07 November 2023, 5:45pm
- Energy
Distribution
- Retail &
Marketing
- Gross margin
increasing by 2% at €191m in Q3 2023, driven by the strong
operating performance of the fuel distribution business
- Volume at +7% with
growth across the board, bitumen catching up after a soft start to
the year
- Support &
Services
- Gross margin up 39%
at €38m, when excluding SARA1, demonstrating the strong
profitability of shipping activities
- Renewable
Electricity Production
- Secured portfolio
at 858 MWp, up 34% over the quarter
- Revenue at €16m, up
22% vs Q3 2022
- Launch of the
construction of Creil: 200 MWp solar farm, Photosol’s largest
photovoltaic project, and second largest project in France
- First-prize winner
of CRE2 tenders with 257 MWp of ground-mounted photovoltaic
projects
- Acquisition of
three RTB3 projects in Spain (Alicante region) representing
30 MWp (mid-October)
- FY 2023
outlook confirmed
- Q3 2023
Group sales at €1,596m, down 22% vs Q3 2022, in the
context of decreasing oil prices vs the same period last year
(-8%)
On 7 November 2023, Clarisse Gobin-Swiecznik,
Managing Partner, commented: "Over the third quarter, Rubis
operating performance was particularly dynamic, as reflected by the
7% increase in volume distributed by our Retail & Marketing
business, together with the continuous expansion of our secured
portfolio in the Renewable Electricity Production division. I’m
very proud of our achievements, and I’d like to congratulate all
our employees on the talent and determination they demonstrate
every day in delivering these high-quality results. Among the
several achievements of this quarter, we launched the construction
of our largest solar farm in France, after being awarded more than
250 MWp by the CRE. This landmark project is a major milestone
in the development of our renewable division in Europe. We are
highly confident in our ability to meet our 2030 goals among which
reaching 3.5GWp in operation for this branch and reaffirm we will
reach €690m to €730m Group EBITDA in 2023 and grow our dividend vs
last year.”
ENERGY DISTRIBUTION
Retail & Marketing
VOLUME SOLD AND GROSS MARGIN BY
PRODUCT IN Q3
|
Volume (in '000
m3) |
Gross margin (in €m) |
|
Q3 2023 |
Q3 2022 |
Q3 2023 vs Q3 2022 |
Q3 2023 |
Q3 2022 |
Q3 2023 vs Q3 2022 |
|
LPG |
298 |
282 |
5% |
69 |
69 |
0% |
|
Fuel |
1,018 |
956 |
6% |
107 |
101 |
5% |
|
Bitumen |
80 |
66 |
22% |
15 |
17 |
-12% |
|
TOTAL |
1,396 |
1,305 |
7% |
191 |
187 |
2% |
|
Following Q2 trend, LPG volume
continued to grow at a dynamic pace in Q3, margin remained stable,
underpinned by a strong demand in bulk product in Portugal and in
Morocco, with the ceramists customer segment growth particularly
high.
As regards fuel:
- retail (service
stations, representing 55% of Q3 fuel gross margin, and 55% of fuel
volume) volume grew by 5% over Q3. Most of this growth is coming
from the Caribbean region. The Eastern Caribbean zone (mainly
Guyana, St Vincent and Barbados) and Jamaica saw strong demand over
this quarter, and Haiti volume is renewing with growth. Gross
margin increased by 11% vs Q3 2022;
- the Commercial and
Industrial segment (C&I, representing 27% of Q3 fuel gross
margin, and 29% of fuel volume) has decreased in Q3 23, at -2% in
volume, and -13% in gross margin, mainly due to Kenya, penalised by
lower government spending on projects such as road or dam
construction. This decrease was partly offset by the strong
performance of Eastern Caribbean (mainly Guyana and Jamaica);
- In the aviation
segment (representing 15% of Q3 fuel gross margin, and 14% of fuel
volume), the strong momentum which started in H1 continued in Q3.
Volume growth reached +36% vs Q3 2022. Gross margin increased by
32%, attributable to the Caribbean region (Grenada and Barbados
mainly).
Bitumen volume was up 22% yoy.
Nigeria caught up after the elections period. Togo also renewed
with growth. The take-off of sales in South Africa, Gabon and
Cameroon continues its good trend. Gross margins show a nice
increase in most countries except for Nigeria (44% of total bitumen
volume, 51% of total bitumen gross margin) where the turmoil due to
the FX fluctuations generates volatility.
VOLUME SOLD AND GROSS MARGIN BY
REGION IN Q3
|
Volume (in '000
m3) |
Gross margin (in €m) |
|
Q3 2023 |
Q3 2022 |
Q3 2023 vs Q3 2022 |
Q3 2023 |
Q3 2022 |
Q3 2023 vs Q3 2022 |
Europe |
198 |
195 |
2% |
45 |
39 |
15% |
Caribbean |
560 |
536 |
4% |
78 |
80 |
-2% |
Africa |
637 |
574 |
11% |
68 |
69 |
-1% |
TOTAL |
1,396 |
1,305 |
7% |
191 |
187 |
2% |
In Q3 2023, adjusted unit margin reached
137€/m3, down from 144€/m3 in Q3
2022 (-5%, mainly driven by the bitumen strong profitability in Q3
22). Adjusted unit margin came in at 141€/m3 in 9M
2023, stable vs 9M 2022.
By region, the dynamics of Q3 were as
follows:
-
Europe continues to benefit from its strong LPG
positioning. This segment slightly increased (+2%) in terms of
volume in Q3 23 but increased its gross margin by 15%, illustrating
the strength of Rubis’ positioning and subsequent pricing power in
this segment;
- the
Caribbean region remained very dynamic, with
volume up 4%. Guyana and Jamaica were the most significant
contributors to growth in this performing region. Gross margin was
overall stable at -2% in the context of increasing oil prices;
- lastly, in
Africa, volume was up 11% and gross margin stable
at -1% (increasing oil prices). Performance of Eastern Africa
retail and aviation segments were particularly strong.
Support &
Services
The Support & Services
activity recorded total revenue of €251m in Q3 2023, (-18% yoy, and
-6% excluding SARA).
Volume (+21%) and margins excluding SARA (+39%)
have seen strong growth, with a high level of activity in the
shipping business, benefiting in particular from two LPG vessels
(previously time-chartered) acquired in Q1 23.
SARA and logistics operations present specific
business models with stable earnings profile.
RENEWABLE ELECTRICITY
PRODUCTION
The level of assets in operation has increased
by 27 MWp over Q3, reaching 421 MWp. The secured
portfolio reached 858 MWp, up from 641 MWp at the end of
Jun-23. As regards pipeline, two new projects reached the
ready-to-build status, representing a total of 200 MWp and c.
120 MWp were added to the early-stage bucket.
Revenue reached €16m over Q3 2023, €2.2m of
which coming from direct sales to the market.
OPERATIONAL DATA
|
Q3 2022 |
Q4 2022 |
Q1 2023 |
Q2 2023 |
Q3 2023 |
Assets in operation (MWp) |
368 |
384 |
394 |
394 |
421 |
Electricity production (GWh) |
140 |
60 |
81 |
153 |
167 |
Sales (in €m) |
13 |
7 |
9 |
16 |
16 |
On top of these elements, Photosol was awarded
257 MWp of ground-mounted photovoltaic projects in the call for
tenders from the French Energy Regulatory Commission (CRE). This
success is a record since the start of calls for tenders in France
in 2011.
This award enabled the launch of the
construction of a 200 MWp solar farm on a former military air
base in Creil (Hauts-de-France region). This project is the largest
in Photosol’s portfolio, and second largest in France.
Photosol also pursues its international
development with the acquisition of three ready-to-build projects
in Spain (Alicante region). Commissioning is planned in 2025, and
project pipeline in Spain now reaches 300 MWp.
Photosol 2030 ambitions are confirmed:
- cumulated
capex will reach €2.7bn over 2023-2030,
of which €700m over 2023-2025;
-
EBITDA will contribute to Rubis Group EBITDA by
at least 25% by 2030;
- installed
capacities will reach 1 GWp by 2025,
3.5 GWp by 2030.
BULK LIQUID STORAGE (JV)
Rubis Terminal JV has delivered
solid performance with +14% yoy storage revenue growth to €68m. As
was the case in H1, this performance is explained by the use of the
new capacities built in 2022 in the ARA zone, combined with the
effect of inflation.
The product mix stayed stable over the Q3, at
72% of non-fuel products and strategic reserves.
OUTLOOK
The business model continues to deliver, with a
solid Q3 2023. The Group is thus able to reaffirm 2023 will be
another year of improving net income Group share vs 2022 (adjusted
for goodwill impairment). EBITDA is expected to land between €690m
and €730m, and dividend will grow in line with Group distribution
policy. Cash flow from legacy activities will continue to supply
for both dividend growth and investments needed to ensure the
sustainable growth of the company.
NON-FINANCIAL RATING
- MSCI: AA
- Sustainalytics:
30.7 (from 29.7 previously)
- ISS ESG: C (from C-
previously)
- CDP: B
Conference call for investors and
analystsDate: 7 November 2023, 6:00pmLink to register:
register.vevent.com/register/BI72624a58a06a41c0ba33f36a4620eb9b
Speakers:
- Bruno Krief, CFO
- Clémence Mignot-Dupeyrot, Head of
IR
Upcoming events
Q4 2023 Trading update and FY 2023 results: 7 March
2024 (after market close)
Capital Markets Day 2024
Press Contact |
Analyst Contact |
RUBIS - Communication Department |
RUBIS - Clémence Mignot-Dupeyrot, Head of IR |
Tel: +33 (0)1 44 17 95 95presse@rubis.fr |
Tel: +33 (0)1 45 01 87 44investors@rubis.fr |
Appendix1. SALES
Revenue (in €m) |
Q3 2023 |
Q3 2022 |
Q3 2023 vs Q3 2022 |
Energy Distribution |
1,580 |
2,029 |
-22% |
Retail & Marketing |
1,329 |
1,722 |
-23% |
Europe |
192 |
216 |
-11% |
Caribbean |
595 |
727 |
-18% |
Africa |
542 |
779 |
-30% |
Support & Services |
251 |
308 |
-18% |
Renewable Electricity Production |
16 |
13 |
22% |
Bulk Liquid Storage (JV) - For information
only |
68 |
59 |
14% |
TOTAL |
1,596 |
2,042 |
-22% |
Revenue (in €m) |
9M 2023 |
9M 2022 |
9M 2023 vs 9M 2022 |
Energy Distribution |
4,880 |
5,307 |
-8% |
Retail & Marketing |
4,103 |
4,555 |
-10% |
Europe |
602 |
633 |
-5% |
Caribbean |
1,733 |
1,949 |
-11% |
Africa |
1,767 |
1,973 |
-10% |
Support & Services |
777 |
752 |
3% |
Renewable Electricity Production |
41 |
25 |
62% |
Bulk Liquid Storage (JV) - For information
only |
198 |
171 |
16% |
TOTAL |
4,920 |
5,333 |
-8% |
2. 9M VOLUME AND
MARGINS
RETAIL & MARKETING: VOLUME SOLD AND GROSS
MARGIN BY PRODUCT IN 9M
|
Volume (in '000
m3) |
Gross margin (in €m) |
Adjusted gross margin (in
€m)(1) |
|
9M 2023 |
9M 2022 |
9M 2023 vs 9M 2022 |
9M 2023 |
9M 2022 |
9M 2023 vs 9M 2022 |
9M 2023 |
9M 2022 |
9M 2023 vs 9M 2022 |
LPG |
952 |
908 |
5% |
227 |
219 |
4% |
227 |
219 |
4% |
Fuel |
3,006 |
2,909 |
3% |
337 |
282 |
20% |
326 |
300 |
9% |
Bitumen |
306 |
315 |
-3% |
74 |
65 |
15% |
49 |
65 |
-23% |
TOTAL |
4,263 |
4,132 |
3% |
639 |
565 |
13% |
602 |
584 |
3% |
(1) Adjusted for exceptional
items and FX effects (idem H1).
RETAIL & MARKETING: VOLUME SOLD AND GROSS
MARGIN BY REGION IN 9M
|
Volume (in '000
m3) |
Gross margin (in €m) |
Adjusted gross margin (in
€m)(1) |
|
9M 2023 |
9M 2022 |
9M 2023 vs 9M 2022 |
9M 2023 |
9M 2022 |
9M 2023 vs 9M 2022 |
9M 2023 |
9M 2022 |
9M 2023 vs 9M 2022 |
Europe |
649 |
637 |
2% |
156 |
149 |
4% |
156 |
149 |
4% |
Caribbean |
1,651 |
1,653 |
0% |
224 |
208 |
8% |
224 |
208 |
8% |
Africa |
1,963 |
1,842 |
7% |
259 |
208 |
24% |
223 |
226 |
-2% |
TOTAL |
4,263 |
4,132 |
3% |
639 |
565 |
13% |
602 |
584 |
3% |
(1) Adjusted for exceptional
items and FX effects (idem H1).
1 SARA: Société Anonyme de la Raffinerie des
Antilles – 71%-owned subsidiary of Rubis, company benefiting from a
regulated status, with a profitability defined by decree.
2 CRE: Commission de régulation de l’énergie –
French authority responsible for energy.
3 RTB: Ready-to-build – Project fully permitted,
land and interconnection secured.
- Rubis: Q3 & 9M 2023 trading update - Solid operating growth
across the board
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