RUBIS: Q3 & 9M 2024 Trading Update

Energy Distribution: Retail & Marketing - Volume up 7% in Q3 2024, gross margin down slightly (-1%) at €190mSteady performance ofLPGacross the board.Solid performance offuelin theCaribbeanregion on the back of a record comparable base. Jamaica and Guyana continue to deliver strong growth. Headwinds in Africa: Strongerfuelvolume inEast Africa. Gross margin under pressure after crude prices went down over the quarter. Bitumenactivity improved thanks...

Paris, 05/11/2024 (informazione.it - comunicati stampa - economia)

On 5 November 2024, Clarisse Gobin-Swiecznik, Managing Partner, commented: “In our Energy Distribution - Retail & Marketing business, this quarter saw a strong volume growth, illustrating Rubis' ability to gain market share. Unit margins decreased due to sudden fall in oil prices combined with a delay in the adjustment of the retail pricing formula in Kenya. This short-term hit should lead to a rebound when prices stabilise or increase. Mid to long-term, the Group's sensitivity to oil prices is limited and a market with lower prices is favourable to product demand. On the Support & Services side, the Caribbean region continued to deliver a strong performance in the trading of LPG and fuel. As demand for bitumen trading in North America is decreasing, Rubis is reviewing its approach by offering trading in the Eastern part of the Atlantic to optimise the utilisation of its vessels when in-house activity is lower. The negative short-term effects faced in Q3 have led us to revise our FY 2024 guidance.”

ENERGY DISTRIBUTION

Retail & Marketing

The third quarter of 2024 saw volume increasing by 7% vs a high Q3 2023. Gross margin was down slightly at -1%, reaching €190m in Q3.

VOLUME SOLD AND GROSS MARGIN BY PRODUCT IN Q3

LPG volume increased over the quarter, mainly driven by a very dynamic bulk segment in Morocco and continued strong demand growth in autogas in France and Spain. These increases were partially offset by softer markets in South Africa and Kenya. Gross margin remained stable, and unit margin decreased by 2% yoy as a result of the different segment mix.

As regards fuel :

Bitumen volume was up 18% yoy, underpinned by the continued strong performance of South Africa, Togo and Cameroon. Nigeria is still lagging. The gross margin decreased by 10% yoy, representing €1m.

The table below provides volume and gross margin split by region for Q3.

VOLUME SOLD AND GROSS MARGIN BY REGION IN Q3

By region, the dynamics of this quarter were as follows:

Support & Services 

The Support & Services business recorded total revenue of €258m in Q3 2024 (+2% yoy).

Margins are decreasing significantly (-25% yoy) to €29m after a very strong Q3 2023.

As a reminder, 2023 had reached a record due to a high level of margin-accretive bitumen trading activity in a context of high shipping rates.

In 2024, the opportunities for bitumen trading in North America were limited, decreasing the overall level of margins and the utilisation of bitumen vessels. The Group is adjusting its approach by offering trading in the Eastern part of the Atlantic.

On the other hand, the strong momentum observed in the fuel and LPG trading activity in the Caribbean over the first half continued in Q3 with +43% in volume and +39% gross margin over the quarter, benefiting from the two vessels acquired in 2023.

The SARA refinery and logistics operations present specific business models with stable earnings profile.

RENEWABLE ELECTRICITY PRODUCTION

The level of assets in operation increased by 22% yoy, reaching 513 MWp at end-Sept 2024. The secured portfolio surpassed 1 GWp. Regarding the pipeline, the project in Creil (approx. 200 MWp) commenced construction during the quarter. Additionally, the early-stage bucket was bolstered by 0.9 GWp of new projects over the quarter. Revenue for Q3 2024 amounted to €17m, representing a 6% yoy increase.

OUTLOOK

As exposed on 31 October 2024, following:

Rubis has revised its 2024 financial guidance as follows:

NON-FINANCIAL RATING

Conference for investors and analysts
Date: 5 November 2024, 6:00pm
To access via the audio webcast: https://channel.royalcast.com/rubisen/#!/rubisen/20241105_1
To access via the conference call :

Participants from Rubis:

Upcoming events

FY 2024 results: 13 March 2025 (after market close)

appendix

1.    SALES

REVENUE BREAKDOWN

REVENUE BREAKDOWN

2.    9M FIGURES

RETAIL & MARKETING: VOLUME SOLD AND GROSS MARGIN BY PRODUCT IN 9M

(1)    Adjusted for exceptional items and FX effects .

RETAIL & MARKETING: VOLUME SOLD AND GROSS MARGIN BY REGION IN 9M

(1)    Adjusted for exceptional items and FX effects .

Attachment