Facilities at the service of energy storage and distribution
2006: STRONG PROFITABILITY IMPROVEMENT
– REVENUE: 728.5 MILLION EUROS
– ORDINARY OPERATING PROFIT: 44.2 MILLION EUROS (+30%)
– ATTRIBUTABLE GROUP PROFIT FOR PERIOD: 30.5 MILLION EUROS (+60%)
– DIVIDEND PER SHARE: 2.14 EUROS (+ 13%)
For the Rubis Group, 2006 was a year full of significant events, in line with its strategy:
– first full-year integration of the Antilles-Guyana activities;
– acquisition of Shell’s Bermuda businesses: oil product distribution and service station network;
– alliance and creation with BP, the oil major, of Frangaz (for the distribution of LPG for cylinders);
– and the international industrial expansion of Rubis Terminal to Rotterdam.
Amid circumstances varying by business, Rubis strengthened its market positions on all segments of activity again with impressive advances in profitability, while recording excellent commercial and financial performances in the year. With a significant expansion in its industrial scope, Rubis booked 30.5 million euros profit for the period from 728.5 million euros in revenues.
These strong margin improvements took place despite 6.4 million euros in non-recurring items that negatively affected gross operating profit:
– SARA (Antilles refinery) transitional stage: a three-year plan to reform facilities and bring them into line with European petrol standards incurred an estimated 3.6 million euros in cost overruns against plans;
– particularly unfavourable weather conditions in the fourth quarter plus the poultry farming crisis, with effects calculated at 8,000 tonnes on propane volumes and 2 million euros on gross operating profit; and
– 0.8 million euros of costs as from October 2006 for the launch of Frangaz, a joint venture with BP to sell gas bottles in hypermarkets.
After doubling in size, Rubis intends to continue profitable growth, enjoying benefits from the organic perspective of:
– leading positions in its two activities; and
– 170 million euros in Capex in 2006.
The Company is also well positioned to accelerate in its external growth, with:
– a solid capital structure enabling it to finance its acquisition policy; and
– an industry with a wealth of opportunities offered by oil majors’ business portfolio restructuring activities.
The Group is ideally placed to maintain profitable growth and, confident in its strategy, shall propose a 12.6% dividend increase, to 2.14 euros, to the next General Shareholders Meeting on 14 June 2007.
Annual results
| Millions of euros | 2005 | 2006 | Var % | Variation at |
| constant scope (%) | ||||
| Revenue | 350.2 | 728.5 | 108% | 7% |
| Gross operating profit | 47.4 | 64.0 | 35% | 5% |
| Ordinary operating profit | 34.0 | 44.2 | 30% | 7% |
| – of which, Rubis Energie | 17.9 | 23.9 | 33% | -12% |
| – of which, Rubis Terminal | 21.1 | 26.2 | 24% | 24% |
| Profit for period from continuing operations, Group share | 17.6 | 27.3 | 55% | 21% |
| Profit for period from discontinued operations | 1.7 | 3.2 | 93% | – |
| Profit for period, Group share | 19.0 | 30.5 | 60% | 28% |
| Cash flow from continuing operations | 31.9 | 48.8 | 53% | 13% |
| Gross capital expenditure | 19.9 | 43.2 | – |
The Group 2006 financial statements include:
– full-year recognition of the entire Antilles-Guyana activity, with SARA proportionally consolidated;
– integration of the Bermuda business in the fourth quarter;
– the Frangaz joint venture with BP as from October 2006, negatively affecting profit for the period by a million euros;
– disposal of the Italian activities, with a net capital gain of 3.2 million euros recognised; and
– Group share of profit for the period from continuing operations expanding by 55%, in which organic growth (excluding the Caribbean: Antilles-Guyana and Bermuda) represented 21 percentage points.
Business in 2006
Storage
Last year was one of intense activity for Rubis Terminal, which benefited from the excellent economic climate, in addition to the development of bio-fuels for the oil and edible oil import flows. In the second half of the year, business in the liquid fertiliser segment was particularly strong. Rubis Terminal saw its ordinary operating profit advance by 24% in 2006, to 26.2 million euros.
Energy
The LPG segment faced a more mixed setting: historically high energy prices; and very unfavourable weather conditions in the last quarter.
Despite these temporary factors, sales in France edged down just slightly (- 3%) while ordinary operating profit was 18% less, though partly offset by Africa’s improved profitability and healthy results (+24%). On a constant scope of consolidation, operating profit at the LPG Distribution business decreased by 12% to 23.9 million euros.
In the year, the Group invested 170 million euros in capital expenditure while maintaining an excellent financial structure. With a 24% debt level and a doubling in size, Rubis is now well positioned to accelerate development in 2007, particularly via external growth, by seizing the many opportunities arising from the energy industry’s intensive asset re-distributions.
Next update:
First-quarter 2007 revenue and financial information – Monday 14 May 2007
Press Contact
COMFIDANCE – Jocelyne Guillon Tel: + 33 (0)1 56 21 20 13
Analyst Contact RUBIS – Bruno Krief Tel: + 33 (0)1 44 17 95 95