PRESS RELEASE

from RUBIS (EPA:RUI)

RUBIS: FY 2022 Results: Strong operating performance, solid balance sheet and further increase in dividend

RUBIS
RUBIS: FY 2022 Results: Strong operating performance, solid balance sheet and further increase in dividend

16-March-2023 / 17:45 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
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This document is a translation of the original French document and is provided for information purposes only. In all matters of interpretation of information, views or opinions expressed therein, the original French version takes precedence over this translation.

 

PRESS RELEASE

Paris, 16 March 2023, 5:45pm

 

FY 2022 RESULTS
STRONG OPERATING PERFORMANCE
SOLID BALANCE SHEET AND FURTHER INCREASE IN DIVIDEND

 

 

NET INCOME GROUP SHARE AT €263M, +10% INCREASE IN ADJUSTED EPS[1]

EXCELLENT OPERATING PERFORMANCE IN AFRICA AND THE CARIBBEAN

RUBIS PHOTOSOL, CONTRIBUTING TO GROUP EBITDA FOR THE FIRST TIME, BY €18M (FOR 9 MONTHS)

PROPOSED DIVIDEND OF €1.92 PER SHARE, UP 3% VS FY 2021

 

FY 2022 Results[2] highlights

  • EBITDA: €669m, +26% vs FY 2021 and EBIT: €509m, +30% vs FY 2021, well ahead of record FY 2019 €412m.
  • Adjusted net income[3]: €326m, +11% vs FY 2021 leading to an adjusted EPS (diluted) of €3.16, +10% vs FY 2021.
  • Corporate net financial debt[4] (corporate NFD) at €930m, 1.5x corporate NFD/EBITDA pre-IFRS 16, vs €438m as of 31/12/2021. Increase in net debt is mostly due to the Photosol acquisition.
  • New complementary decarbonisation target on scope 3A.
  • Signing of first sustainability-linked loans with margins linked to the achievement of ESG KPIs (Rubis Énergie).

 

Outlook

The beginning of 2023 has demonstrated continued volumes and earnings improvement at Rubis Énergie and focus on the pipeline development at Rubis Renouvelables. With relevant growth drivers, the Group is confident that 2023 will be another year of improving net income Group share vs 2022 (adjusted for goodwill impairment) and dividend, in line with dividend policy.

  

On 16 March 2023, Clarisse Gobin-Swiecznik, Managing Director, commented on the results: "Rubis has once again demonstrated the solidity of its business model and shown strong operational performance, investments in the renewable energy, while maintaining a solid balance sheet. Our multi-product, multi-country strategy and the control of the supply chain ensure better risk management; operational excellence and sustainability of the business, together with a healthy financial situation to finance growth and development.

In 2022, Rubis has made a strategic entry into the renewable energy sector with the transformational acquisition of Photosol – one of the leading independent French photovoltaic companies. With the development of a pipeline over 3 GWp, Photosol is set to contribute to Rubis earnings growth in the mid- and long-term.

Our energy distribution businesses continue to perform well and grow, thereby generating strong cash flows which will further sustain our shareholder-friendly dividend policy and value enhancing bolt-on acquisitions across all divisions.

We have ambitious plans for 2023. We will continue our hard work to grow with a strong focus on the distribution of bitumen and the Eastern African region and confirm our positioning of key player in the renewable segment. I am fully confident we will continue to perform and achieve these ambitions, with the support of our high-quality and engaged employees.”

 

KEY FIGURES

Consolidated financial statements as of 31 DECEMBER 2022

(in million euros)

2022

2021

2022 vs

 

 

 

2021

Revenue

7,135

4,589

+55%

EBIT

                      509

                      392

+30%

Net income, Group share

                      263

                      293

-10%

Adjusted net income(1), Group share

                      326

                      293

+11%

Adjusted EPS (diluted), in euros

                     3.16

                     2.86

+10%

Dividend per share, in euros

1.92(2) 

                     1.86

+3%

Operational cash flow before change in working capital(3)

                      432

                      465

-7%

Capital expenditure

                      259

                      206

 

Net financial debt (NFD)

1,286

                      438

 

NFD/EBITDA

2.0x

0.9x

 

Corporate net financial debt(4) (corporate NFD)

                      930

                      438

 

Corporate NFD/EBITDA

1.5x

0.9x

 

  1. Adjusted net income – excluding non-recurring items and IFRS 2.
  2. Amount to be proposed at AGM on 8 June 2023.
  3. Operational cash flow after net financial costs and tax and before change in working capital.
  4. Corporate net financial debt – excluding non-recourse debt.

 

 

FY 2022 FINANCIAL PERFORMANCE

 

FY 2022 has seen very strong increase in EBITDA to 669m (+26% yoy) and EBIT to 509m (+30% yoy). Photosol has been consolidated for nine months in 2022 (from 1st April 2022) contributing 18m to Group EBITDA and -€0.8m to EBIT.

Operating performance was driven by:

  • Retail & Marketing with +37% increase in EBIT to €396m; and
  • Support & Services with +17% increase in EBIT to €144m. 

Rubis Terminal JV has continued its steady growth with 6% in storage revenues reaching €235m in FY 2022 and 2% yoy increase to €124m in adjusted EBITDA[5] in FY 2022.

The Group EBITDA and EBIT are inflated from FX pass-through in Nigeria (€34m) in FY 2022. When adjusted for this effect, underlying EBITDA increased by 20% yoy and EBIT by 21% yoy. FX losses have reached €80m in FY 2022, from €11m in FY 2021.

FY 2022 results include non-recurring items, mainly:

  • costs linked to the acquisition of Photosol (-€16m after tax);
  • goodwill impairment in Haiti (-€40m) on the back of continued deterioration in safety and economic situation in Haiti and rising discount rate.

Adjusted for these non-recurring items and IFRS 2 charges, net income stands at €326m, up 11% yoy.

Operational cash flow before changes in working capital[6] reached €432m (vs €465m in FY 2021). Change in working capital has led to a €31m outflow with increasing oil prices (FY 2021: €214m outflow). Thus cash flow from operations after change in working capital and after repayment of lease liabilities (IFRS 16) reached €349m in FY 2022 vs €233m in FY 2021.

The acquisition of Photosol in April 2022 has an important impact on Rubis balance sheet. With excellent long-term visibility thanks to 20-years contract duration and very low risk profile, Photosol is able to finance its development pipeline with high debt leverage. Most of the debt is non-recourse project debt at SPV level. Thus, Rubis now communicates separately on its total net financial debt (NFD) and on its corporate net financial debt (i.e., excluding non-recourse project debt). Total NFD increased to €1,286m, out of which €357m is the non-recourse debt at SPV level of Photosol.

Rubis corporate net financial debt (corporate NFD) increased to €930m at the end of FY 2022 (from €438m for FY 2021) with corporate NFD/EBITDA pre-IFRS 16 at 1.5x. The main reason behind this increase is the acquisition of the 80% stake in Photosol (€341m cash paid and consolidation of €65m of its corporate net debt).

Capex reached €259m, out of which €49m (19%) are renewable investments (Photosol) and decarbonisation. The remaining €210m are split between maintenance (80%) and growth and energy transition investments (20%) at Rubis Énergie.

On the back of strong operational results and solid balance sheet in FY 2022, the management proposes another increase in dividend per share to €1.92 (+3% vs 2021).

 

 

RUBIS ÉNERGIE

Rubis Énergie incorporates the Retail & Marketing of fuels (in service stations or for professionals), lubricants, liquefied gases and bitumen, as well as the logistics behind the Retail & Marketing activity through Support & Services, grouping together SARA refinery, trading/supply and shipping operations.

Overall, Rubis Énergie has reported an excellent development in FY 2022 with a strong increase in EBIT to €540m driven by double-digit growth in both Retail & Marketing and Support & Services. Operational cash flow before change in working capital reached €440m in FY 2022, slightly down vs FY 2021 (-7%) due to higher interest costs and FX losses. Capex increased slightly to €215m (+4% yoy) despite strong investment in bitumen and Eastern Africa, illustrating the cost discipline approach of the Group.

RUBIS ÉNERGIE FINANCIAL highlights

(in million euros)

2022

2021

2022 vs

 

 

 

2021

EBITDA

           680

              551

23%

EBIT, of which

              540

            412

31%

Retail & Marketing

          396

          289

37%

Support & Services

          144

       123

17%

Operational cash flow before change in working capital

          440

            475

-7%

Capital expenditure

          215

           206

4%

 

  • RETAIL & MARKETING (73% OF RUBIS éNERGIE EBIT)

The Retail & Marketing business operates in three geographic areas: Europe, the Caribbean and Africa.

Overall, volumes are up 2% compared to FY 2021 with an excellent development in Eastern Africa (focus on the service-station network) and buoyant aviation driven by tourism and end of Covid-linked restriction measures in the Caribbean region.

Volumes sold by region in FY 2019-2022

(in '000 m3)

2022

2021

2020

2019

2022

vs 2021

Europe

856

872

816

890

-2%

Caribbean

2,173

2,070

1,963

2,298

5%

Africa

2,458

2,459

2,269

2,296

0%

TOTAL

5,487

5,401

5,049

5,494

2%

 

Gross profit reached €801m, up 27% vs 2021, driven by both volume, solid unit margin development across all regions. Gross profit growth stood at +21% when adjusted for FX pass-through in Nigeria (bitumen), while unit profit has increased by 19% yoy to €140/m3.

2022 has been a busy year for Rubis Énergie in terms of initiatives taken on climate topics. In line with what was announced, an internal carbon pricing methodology was defined for risks appraisal in capex or equity investments.

  

Work on scope 3A emissions identification was completed and a new decarbonisation target was set. This target mainly concerns outsourced road and maritime transport, which accounts for the largest share (45%) of Rubis scope 3A emissions and reaches -20% by 2030 vs the 2019 baseline.

 

Retail & Marketing gross and unit profit in FY 2022 (1)

 

Gross profit
(in €m)

Split

2022 vs 2021

Unit profit
(in €/m3)

Change yoy

Europe

197

25%

1%

230

3%

Caribbean

280

35%

35%

129

29%

Africa

324

40%

40%

132

40%

TOTAL

801

100%

27%

146

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