Half Year 2025 Rubis SCA Earnings Call
Managing partner and Microsoft coach difficult, because I still felt the country.
Clarisse Gobin: I am with Clarisse Gobin, Managing Partner, and Marc Jacquot, Chief Financial Officer. Clarisse, please start the conference.
Ladies and gentlemen, good evening.
Clarisse Gobin: Ladies and gentlemen, good evening. To kick off this presentation of our H1 result, let me very quickly remind you what we do. Our business is about distributing energy while supporting mobility solutions. In Europe, we distribute and sell LPG, and we also produce and sell photovoltaic power. In Africa, we distribute and sell bitumen to road contractors in West Africa and fuel and LPG in East Africa. In the Caribbean, we distribute and sell fuel and LPG. These products reach a wide range of customers, both individuals and professionals, while the distribution is supported by reliable and most of the time in-house logistics. For H1 2025, this diversified business model delivered a steady performance. In a global economic environment marked by uncertainty, our results for the first half of 2025 stand out with growth in volumes and margins across all regions and for the client.
To kick off this presentation of our H one Russell left.
Lets me very quickly remind you of what we do.
Our business is about disturbing kinion Archie life's chip awesome mobility solutions in.
In Europe, we distribute and serve as cities and we also produce and sell a photovoltaic power.
In Africa, we distribute themselves determined to Russ contractors in West Africa, and fuel and Edison G in East Africa.
In the Caribbean, we distribute them send fuel and electricity.
[laughter] goes products reached a wide range of customers both individuals and professionals why is the distribution is two biopsies by our reliable and most of the time in house logistics.
It's 120 25.
Diversified business model delivered a steady performance.
In a global economy environment marked by uncertainty our results for the first half of 2025 stand outs with growth in volumes and margins across all regions and product lines for the South continues to progress According to plan on track.
Clarisse Gobin: Photosol continues to progress according to plan, on track towards 2027 objectives. Our group EBITDA grew by 3% and the net income group share by 26%, driven by a strong operational performance, better asset management, and stable emerging currencies. Cash flow generation remains steady at €276 million per H1, which is a key highlight of this publication. All of this gives us confidence in reaching our full-year guidance, even in a less favorable USD/EUR exchange rate and environment in H2. The following slide highlights our balanced growth across product lines and geographies. It showcases the strengths of our commercial strategies, our agility, and seamless execution. Looking at our H1 performance by business line, you can see that in retail and marketing, all products delivered both volume and margin growth. LPG was driven by a very strong commercial momentum in Europe.
Two or 2027 objectives.
Our group EBITDA grew by 3% and the net income group share a 26% driven by stronger personal performance better ethics management and stable imagining parents, it's cash.
Cash flow generation remains steady at 276 million real with each one of them, which is a key half life of Dystrophication.
All of this gives us confidence in reaching our full year guidance.
In a less favorable U S euro exchange rates and better than in Asia.
This following slide highlights our balance grows of course predict times and geographies. It showcases the strength of our commercial strategies, our agility and seamless execution.
Looking at our edge funds have fallen steadily business right you can see that in retail and marketing all product delivers both volume and our marketing approach.
P. G was driven by very strong commercial momentum in Europe.
Infill distribution the expected pricing formula just snuck in kidney up to the first fit in March the second steps implemented mid July we've shortly now where it's just a comment.
Clarisse Gobin: In fuel distribution, the expected pricing formula adjustment in Kenya took a first step in March. The second step implemented in mid-July will show in our H2 performance. In bitumen distribution, demand in Nigeria is strongly picking up. The sharp decrease in unit margin visible here is purely a basis effect linked to the 2024 currency devaluation. We already mentioned it in Q1. Marc will elaborate further on this point. At transport and services, which covers supply to the distribution business and the Sahara refinery, performance remains overall stable. Finally, the renewable business is expanding as planned with a sharp increase in both assets in operation and secure portfolio, in line with the roadmap we presented at last year's Photosol Day. In conclusion, these first half results are yet another demonstration of the group's ability to deliver consistent commercial and operating performance, cycle after cycle.
In bitumen distributional demand in Nigeria, I strongly picking up the sharp decrease in unions Moslem visible here is truly a baby's effect linked to the 'twenty 'twenty four kerensky devaluation, we already mentioned that from Q1, Mark will elaborate further.
On the spot.
Our first stop and services, which covers supply to the distribution business and the south somehow refinery that's comments remain overall stable.
Finally.
The renewables business extending as planned with a sharp increase at both upsets in the variation and secure it for you in line with the roadmap, we presumed kids' access yours puts us someday.
In conclusion. These first half results are yet another demonstration of the group's ability to deliver consistent commercial and upgrade since that problems cycle after cycle.
And when you combine with the trade unions with Siem and proactive financial management that I was coming to clear the strong and steady cash flow generation are fully in line with our historical standards.
Clarisse Gobin: When you combine that resilience with discipline and proactive financial management, the outcome is clear: a strong and steady cash flow generation fully in line with our historical standards.
Thank you.
We didn't mean tool.
Marc Jacquot: Thank you, Clarisse. Good evening to all. Let's start with the big picture for the first half. Our EBITDA is up 3% year on year and flat on the comparable basis. As Clarisse already mentioned, this is driven by strong LPG performance in Europe, while in Africa, Kenya import volumes and margins in the retail segment and bitumen return to growth in Nigeria. Net income is up 26% to €163 million, reflecting the absence of assets losses. Capex related to the distribution business remains well under control, roughly stable at €73 million, while they are increasing in renewable to €85 million, which is a concrete and positive sign that our growth projects are now materializing and are being steadily derisked. Nearly 85 MW were put in operation over H1, and 290 MW are now under construction.
Let's start with the big picture for the first half.
Our EBITDA is up 3% year on year and flat on a comparable pieces.
As Clarence said, what you mentioned is driven by strong L. P cheaper for months in Europe, while in Africa, Kenya improved volumes and margins in the retail segment and determine with them through growth in nature.
Net income.
The 26% 263 million euros, reflecting the absence of FX losses.
Capex related to the distribution business womens womens of control ruthless table 73 million euros.
Once they are increasing and were you able to 85 million euros, which is a concrete and positive things that are worth projects on though materializing and not being student you with me.
Nearly 85 megawatts were put in operation at one and 290 Mega.
Maybe that was no under construction.
Gulfport net debt is stable.
One four times, despite the negative change in working capital over H ones, which confirmed our silicone shelf position.
Marc Jacquot: Corporate net debt is stable at 1.4 times, despite the negative change in working capital over H1, which confirms our strong financial position. Finally, cash flow from operations remains strong at €276 million for the first half year, supported by the good operating performance and the absence of assets losses. All in all, that's a solid performance. Now, let's take a closer look at our activities. Retail and marketing delivered a solid performance across the board, with EBITDA increasing by 3% year on year. In Africa, we have three things to highlight. First, retail. Retail is contributing well, and the impact of the new pricing formula in Kenya is expected to be fully visible in the second half. Second, aviation, which is more volatile, is facing higher pricing competition, leading us to reduce our volumes for the moment in Kenya. The third one is bitumen.
And finally.
Cash flow from operations remains strong at 276 million euros positive first Hello here supported by the good operating performance and the absence of FX losses.
All in all that's a solid book sellers.
Now, let's take a closer look at the all activities.
We'd go to market team delivered a solid performance across the board with EBITDA, increasing by 3% year on year.
In Africa, we are stripping two highlights.
First.
Retail retail is contributing well and the impact of the new pricing for midnight in Kenya.
Is expected to be fully because he believes that Saddam house cyclone admission, which is mobile uptime is facing how youre pricing competition, leading us to rid yourselves volumes for the moment in Kenya.
And the third one is bitumen determine margins increased less volume.
Marc Jacquot: Bitumen margins increased less than volume, and this is a basis effect from 2024, when narrowed devaluation impact affecting the financial results below EBITDA was passed through to customers. Now, let's look at the Caribbean. The Caribbean region was broadly stable, which is in line with our expectations. Guyana slowed down a bit with the election coming up in September, creating some kind of wait-and-see behavior among our B2B customers. In Haiti, the measures we have taken in our logistic management are starting to pale even if volumes remain a bit soft. Jamaica is normalizing with supply conditions slightly less favorable than last year. Now, Europe. In Europe, the momentum is particularly good as a result of our challenger positioning, combined with the excellent drive of our commercial teams and a colder winter this year.
And this is a base effect from 2024, when they were worried that the mineral rights devaluation impact.
Fixing the phone shallower zones below the knee.
It was passed through to customers.
Now, let's look at the Caribbean The Caribbean region was broadly stable, which is in line with our expectations Diana slowed down a bit with the election coming up in September, creating some kind of wait and see behavior, among our IP to the customers.
In a T. The mergers we have taken in our logistic management stuff starting to pay off even if volumes remain a bit soft.
Germany Kevin.
Is normalizing with took like conditions slightly less favorable than last year.
No Europe.
In Europe, the momentum is particularly good at the original support challenger positioning combined would be extending the life of a commercial and a colder winter this year.
Looking at support and services remained.
Marc Jacquot: Looking at support and services, it remains stable, which is normal as this segment usually flexes with our retail and marketing activities. Now, the renewable electricity production. What we can say is that the power EBITDA stands at €22 million, which is up 38% year on year. In line with our roadmap, our development expenses have increased, reflecting the acceleration of the growth of this business, resulting in a consolidated EBITDA at €10 million. In conclusion, this is a robust operating performance attesting to the strength of our product and geographical diversification. Let's have a look at our financial results. Let me highlight just a few items here. The net income group share is up 26%, or on the comparable basis, 18%. This is a result of lower expensive local debt levels and reduced FX exposure.
Women stable, which is normal as this segment, usually flexes with our retail and marketing.
No the renewable electricity production.
What we can say is that the power of BT is does the 22 million euros, which is a 38% year on year.
In line with our word of mouth, our development expenses that have decreased reflecting the acceleration of the growth of this business residency in a consolidated 10.
10 million euros.
In conclusion since the robust operating performance at the things that the strength of our product and geographical diversification.
Yeah.
Let's have a look at all from travel agents.
Let me highlight just a few items here.
The net income group share is up 26% all on a comparable basis 80 Nicholas.
This is the result of lower extensive look at debt levels and really just FX exposure.
When analyzing our income statement, let me remind you that the Sheryl I think come from our associates. Each one and 2024 included Q1 results from this terminal.
Marc Jacquot: When analyzing our income statement, let me remind you that the share of net income from associates in H1 2024 included Q1 results from Rubis Q4. Interest costs are down thanks to lower debt in Kenya and more favorable interest rates. As you know, last year, Rubis recorded significant FX losses, particularly in Kenya and Nigeria. In H1 this year, local currencies were more stable, and the strategies we put in place to mitigate the FX risk have proven efficient, and we didn't incur any FX loss. As for taxes, nothing major to flag. The OECD global minimum tax is now fully integrated in our normal realm. Overall, Rubis demonstrated agility and delivered solid financial results, fueling its cash flow momentum and supporting its balance sheet. Now, a word on our financial debt.
Interest costs have done things to lower that in Kenya, and most have already gone into it further.
Yeah.
As you know our service.
Recall that a significant FX losses, particularly in Kenya and Nigeria.
In page one detour local currencies were more stable and the strategy, we put in place to mitigate the ethics of program F issuance and we didnt incur any ethics law.
As for taxes nothing.
Nothing major floods the OECD global minimum tax is now fully integrated not no matter what.
Overall rubis demonstrates it ideally begin delivers solid punch, otherwise those trailing cash flow momentum and supporting its balance sheets.
Yeah.
No the war on Alcon shows deaths.
Total net system at 1.4 billion euros with corporate debt at 910 million years, maintaining a healthy leverage of one four times.
Marc Jacquot: Total net debt stands at €1.4 billion, with corporate debt at €910 million, maintaining a healthy leverage of 1.4 times at corporate level. Our liquidity level is high, with more than €180 million under FPS, in addition to our €530 million cash on balance sheet. The main variation of this debt, this half, came from a steady operational cash flow of €390 million, which is up 11%, reflecting the good operating performance combined with the absence of FX losses. A negative impact from change in working capital of €68 million, after a very positive effect in H2 2024 as a consequence of lower credit payables. Capex of €164 million, which is higher than last year with the rental of Photosol and our usual June dividend that we pay to shareholders, but also to minority interests and general partners. Non-recourse debt increased by €63 million, in line with the renewable investments.
Corporate approval.
Our liquidity levels is high with more than 180.
Million euros, Andrew S. Yes. In addition to our 550 million euros cash on balance sheet.
Yeah.
The main variation of this data is house came from the state of the operational cash flow of 390 million euros, which is up 11%, reflecting the good operating performance combined with the absence of.
FX losses.
The negative impact from changes in working capital.
Of 68 million euros after a very positive effect and edge 224, as a consequence of lower trade payables.
Capex of Android and 64 million euros, which is higher than last year with the ramp up of the soul.
And our push on June the dividend paid to shareholders, but also to minority interest and to non partners.
Nonrecourse debt increased by 63 million euros in light with your when you were building testaments.
All in all our balance sheet remains solid with ample liquidity to support our future works.
Marc Jacquot: All in all, our balance sheet remains solid, with ample liquidity to support our future growth.
Thank you so much and before we open the floor to China next me wrap up.
Clarisse Gobin: Thank you, Marc. Before we open the floor to Q&A, let me wrap up. First, we saw Rubis commercial and operating performance. Second, our seamless execution and agility deliver reliable cash flow through the cycle. Finally, these H1 achievements make us confident we are on track to reach our 2025 targets, even in the less favorable euro-dollar context in H2. With a healthy balance sheet and a stable leverage ratio, we confirm we are aiming at €710 to €760 million EBITDA within the framework of assumptions you have here on the slides. Thanks a lot for your attention. We are ready to take your questions.
So first we saw revenues commercial and all parents Amit.
Second our seamless execution that actually can deliver reliable cash flows for the cycle.
Family. This H one achievements make us confident we are on track to reach our 2020, if ice packets.
I mean, the last time variable eurodollar complex nature.
I mean is it helps the balance sheet and a stable leverage ratio requirement come we are aiming at 710 to 716 million and Europe EBITDA reached.
In the framework, but that's the change you have here on the slides.
Thanks, a lot for your attention.
Yeah are ready to take your questions.
If you wish to ask a question please either fill in the form at the bottom of the life page or click on the audio participation button in the player labeled as request to speak and wait until you were notified to ask your question.
Speaker 4: If you wish to ask a question, please either fill in the form at the bottom of the live page or click on the audio participation button in the player labeled as Request to Speak and wait until you are notified to ask your question.
We have no audio questions at the moment I propose you begin by the written questions from the webcast.
Speaker 5: We have no audio questions for the moment. I propose you begin by the written questions from the webcast.
Yeah.
So we have two questions on the webcast from August to an extent kept her.
Clarisse Gobin: We have two questions on the webcast from Auguste de Rixt at Kepler. Question number one is, "Group EBITDA was stable on a comparable basis despite 5% volume growth. What are the key headwinds preventing stronger margin conversion?
Question number one is group EBITDA was stable on a comparable basis. Despite 5% total growth what are the key headwinds preventing stronger margin conversion.
What we can say on the on the margin as I mentioned the LPG margarines.
Marc Jacquot: What we can say on the margins, as I mentioned, the LPG margins were stable over the first half. In the fuel distribution business, the unit margin decreased by 1% in H1, and this decrease came exclusively from the Caribbean, especially from Jamaica. In Jamaica, you know the supply is not in Rubis's hands. Last year, we had very favorable conditions for this supply. This semester, actually, those conditions normalized, I would say. That is the first explanation. The second one is on the bitumen distribution business. The volume growth in Nigeria resumed, as we explained. H1 2024 was high due to the FX pass-through, and the significant decrease in margin is explained by the basis effect after H1 2024 evaluation. Considering the guidance.
Well stable over the first half and in the fuel distribution business. So the unit margin decreased by one person.
And this decrease.
If crude exclusively from the Caribbean, especially from Jamaica, Jamaica is a the supply is not just him and last year, we had very favorable condition.
Condition for this supply.
And this semester actually those conditions normalized let's see so that's the first explanation so going alone isn't the bitumen bitumen distribution business. So as the volume growth in Nigeria, which used as we explain in each one 2024 was high <unk>.
To the ethics fast food.
And the significant decrease in margin is explained by the basis effect after a 22020 for evaluation.
Considering the guidance.
We have two questions are considerable.
Clarisse Gobin: We have two questions on euro-USD FX. Question number one is, both questions have the same answer. Question number one is, "What level of FX rate and hyperinflation assumptions underpin the guidance, the EBITDA target of €710 million to €760 million? What contingency levers do you have if the macro backdrop worsens?" Another question from Emmanuel Matteau is, "What is the dollar negative impact we can expect for 2025 on your EBITDA?
Your your own U S T a ethics.
So question number one is those places have the Samsung Chris' question number one is what level of ethics rates and hyperinflation assumptions underpinning the.
The guidance you gave.
With targets of 710% in 16.
What contingency levers do you have in the macro backdrop or sense and another person from them and their inventories, which is the tiller negative impacts we can expect for 2025 alright. Thank you.
So we're getting.
So the guidance M B E Adrian inflation embedded in that.
Marc Jacquot: Regarding the guidance and the hyperinflation embedded in the guidance, we have the same level of hyperinflation in the guidance as in 2024, meaning a positive impact of €24 million on the EBITDA, €22 million on the EBIT, and minus €10 million at the net income group share level. This is our assumption. It will be, and this is something that we will know only at the closing. There is a lot of uncertainty in the hyperinflation, so we cannot commit on this number. In terms of impact of U.S. dollar and euro, the initial assumption we had was the euro-dollar level at the beginning of the year, meaning an exchange rate of $1.05 for €1. Now we are at $1.17 or $1.15, depending on the date. What we can say is that the good performance at the H1 will compensate the unfavorable impacts related to the U.S. dollar impact.
Those engagements.
We have the same logo offer either inflation.
In the guidance then in 2020 for many positive impact of.
25 million.
Median euros.
<unk> 25 trillion.
24 million euros in.
22 million euros is and mindless 10 million euros at the net income group share logo. Okay. So this is our assumption and and it will be.
And this is something that we'll know on me at it.
The closing so there's a lot of uncertainty.
In N V. A transition so it is so we cannot commit on this number in.
In terms of impact of the U.
Don or euro.
The the initial assumption we are was the.
Your denial level at the beginning of the Germany.
An exchange rate of 1.0 site okay.
There are four one Europe now we are 117.
When 16, depending of the of the day, what we can say is that the good performance of the a 12 well.
Will compensate.
The the day February volumes back related to <unk> to the U S at all.
Yeah.
The.
The the margin, whereas in U S dollar.
Marc Jacquot: The margin we have in U.S. dollar concerns, actually, I would say, two-thirds of our business. You can calculate what is the impact yourself for H2.
Is concerned it's really I would say two third of our business. Okay. So you can get please what was the impact yourself on that.
For Portugal.
As a reminder, if you wish to ask a question. Please either fill in the form at the bottom of the life page or click on the audio participation button in the player and wait until you were notified to ask your question.
Speaker 4: As a reminder, if you wish to ask a question, please either fill in the form at the bottom of the live page, or click on the audio participation button in the player and wait until you are notified to ask your question.
Yes.
So we have another question on line from generic for Microgrid. Please give us an idea of what their renewable EBITDA is before development cost.
Clarisse Gobin: We have another question online from Jean-Luc Romain: "Could you please give us an idea of what the renewable EBITDA is before development cost?
Yeah.
Yeah.
So it's a renewable it before development cost is what we call. The power of it did the forward year month to 22 million euros in that one.
Marc Jacquot: The renewable EBITDA before development cost is what we call the power EBITDA. The power EBITDA amounted to €22 million in H1.
Yeah.
We have another question from Thomas Streater.
Clarisse Gobin: We have another question from Thomas Streeter saying, "As an aviation business, are any of your markets showing activity in SAF, sustainable aviation fuel, and is that a market Rubis might get into?" We are more or less agnostic to the type of fuel we distribute. We adapt to the demand of our customers. We would be able to distribute SAF, and we do in some places, especially in the Caribbean. It's mainly a question of offer and demand, and there is not a lot of offer today. We are, in any case, adapting ourselves to the demand from our customers. Another question from Mr. Stass about the Photosol portfolio evolution. It is not on the slides you have here in the presentation. That is in the webcast, but you can find it on our website.
Same as optimization business.
Are any of your markets going exiting fast sustainable aviation fuel and instead of market for dish might get into.
We are more or less agnostic to the type of sure. We distribute we adapt to the demand of our customers, we would be able to distribute SaaS and we do in some places, especially in the Caribbean.
But it's mainly a question of offer and demand and Theres not a lot of offer to date and we are in any case Ah adapting ourselves to the demand from our customers.
[noise] another question from Mr. Seth about puts us all portfolio evolution.
It is not on the slides you have sphere.
In the presentation that is in the webcast, which you can find it on our website.
Yes.
Okay.
As a last reminder, if you wish to ask a question. Please either fill in the form at the bottom of the <unk>.
Speaker 4: As a last reminder, if you wish to ask a question, please either fill in the form at the bottom of the live page, or click on the audio participation button in the player and wait until you are notified to ask your question.
Life page or click on the audio participation button in the player and wait until you were notified to ask your question.
Yeah.
We have another question from him in here in my first order online asking us if we have any impact of U S. Tariffs language funnel remains geographically cannot national model Mexican largely insulated from the direct effects of Paris.
Clarisse Gobin: We have another question from Emmanuel Matteau at Odoo online, asking us if we have any impact of U.S. tariffs during the summer.
Clarisse Gobin: Rubis's geographic and operational model makes it largely insulated from the direct effects of tariffs. We are not present in the U.S., nor in China, and we do not depend in any case on U.S.-based or China-based players in our distribution business. On the indirect side, the products and services we offer are essential, particularly in the energy space. As such, demand tends to be relatively inelastic, meaning it remains quite stable even during periods of price volatility or economic slowdown. I would say we have no effect of tariffs on our P&L or results.
Our net premiums in the U S now in China, and we see Nancy Pan and Mek plus you had stayed up Shanghai based players when I went to a solution.
And he and direct side the products and services of her at essentially a flurry in the industrial space as such even has to be relatively inelastic, meaning it's remains quite stable even during periods of price volatility our economy slow down so.
I would say we have no effects of <unk>.
Terry.
On our P&L our risks.
Yeah.
Another question from Roger degree can you update us on the Capex plans and specific contracts over the next year or two in the energy distribution business.
Clarisse Gobin: Another question from Roger Degree: "Can you update us on the Capex plans and specific projects for the next year or two in the energy distribution business?
Hello Roger.
What we can say is on their proposal capex at this level as you know will increase in line with the ambition committed committed to the market that put us on diesel is a $1 1 billion capex.
Marc Jacquot: Roger, what we can say on the Photosol Capex is that this level, as you know, will increase in line with the ambitions communicated to the market at Photosol Day. It is a €1.1 billion Capex in the 2024-2027 backend loaded. For 2025, it should be in the range of €150 to €160 million. Talking about the Rubis Energy in the fuels distribution business, we should be in the normalized level, you know, in the one, I would say, €185 million on the run rate.
In the 2020 for 2027 back backend loaded.
And so for 'twenty.
For 2025, it should be in the range of 152 1 million euros.
Talking about the Rubis energy this was a distribution business.
We should be in the.
Normalized low value Louise E D, one, albeit 185 million euros.
Run rates.
Another question online can you give us an update on the shareholding structure and so the answer is it's public.
Clarisse Gobin: Another question online: "Can you give us an update on the shareholding structure?" The answer is public. The shareholding structure as of today is the largest shareholder is Mr. Patrick Mollis with a bit more than 9%. You have the Bolloré Group through Plantation de Terre Rouge, a bit above 5%. You have Mr. Salmon above 5% also. The group industry in Marcel Dassault, a bit above 5%. The rest of the shareholding structure is all split between different shareholders.
Shoveled instructor as of today it is.
The largest shareholder asked Mr. Patrick moves with more a bit more than 9%. Then you have the royalty growth through protest and established a base of about five you have Mr. Fernando above five also a whole bunch of cinema Matson vessel a bit of a five and.
Then the rest of their shovelled into sectors.
Or sit between months.
Okay.
Different challenges.
Yes.
There are no more questions at this time, so I hand, the conference back to the speakers for any closing remarks.
Speaker 4: There are no more questions at this time. I hand the conference back to the speakers for any closing remarks.
Thanks, a lot for being here, we will be on the road on the days to come so do not hesitate to reach out to us. If you want to schedule a meeting or I should have questions you know where its really interesting. Thanks, a lot and have a nice evening.
Clarisse Gobin: Thanks a lot for being here. We will be on the road in the days to come. Do not hesitate to reach out to us if you want to schedule a meeting or if you have questions, you know where to reach us. Thanks a lot and have a nice evening.