RUBIS: CONTINUED GROWTH - NET INCOME: 22% - DIVIDEND

Paris, March 13, 2017, 5.35 p.m.

At its meeting of March 10, 2017, the Board of Management finalized the 2016 financial statements, which were approved by the Supervisory Board at its meeting of March 13, 2017. An unqualified certification report is currently being issued by the Statutory Auditors.

2016 was characterized by sound growth in overall business volumes (up by 15%) resulting in an excellent performance in terms of net income, Group share, which was up by 22% at €208 million.

* Amount proposed to the O&EGM of June 8, 2017. Note: contribution breakdown between Rubis Énergie and Support and Services business has been modified in 2015 set of results. Above figures reflect this change.

The results were driven by Rubis Énergie (petroleum products distribution business), which posted a 17% increase in volumes (up by 5% at constant scope). In total, Rubis Énergie's EBIT rose by 24% to €192 million (up by 9% at constant scope).

The Support and Services business, which includes Sara (Antilles refinery) and all shipping, trading and services activities, reported EBIT of €69 million, an increase of 43% (up by 19% at constant scope). The division's excellent performance is attributable to the full consolidation of Sara and strong growth in trading activities in the Caribbean.

Rubis Terminal recorded overall growth in revenues of 5%, driven by international operations (up by 11%). The division continued its policy of extending its capacity in petrochemicals (ARA zone) and petroleum (new strategic storage contracts in France). Factoring in the share of earnings of equity associates (Antwerp and Turkey), EBIT was €63 million, an increase of 8% (versus 4% as reported).

Capital expenditure for the Group totaled €163 million, plus €27 million in net acquisitions of subsidiaries.

The consolidated financial structure was particularly sound at year-end, with a debt-to-EBITDA ratio of 0.6 leaving scope to envision new acquisitions.

The excellent quality of these results will allow the Group to propose the payment of a dividend of €2.68 per share, an increase of 11%, at the next Shareholders' Meeting, a figure in line with historic growth.

RUBIS ÉNERGIE: Fuel distribution

Rubis Énergie's volumes grew by 17% (up by 5% at constant scope). Overall growth in volumes combined with the positive impact of the redeployment in South Africa and acquisition-led growth (contributions from acquisitions made in 2015, notably on Réunion Island) resulted in a sharp increase in EBIT at €192 million (up by 24%). At constant scope, EBIT grew by 9%.

Rubis Énergie's growth by region breaks down as follows:

• Europe recorded stable volumes despite particularly unfavorable weather conditions in the winter of 2016. EBITDA, which was stable (-1%), reflects the economic reality of performance; the 15% growth in EBIT is attributable to the impact of provisions (reversals) spread over various subsidiaries;
• the Caribbean posted growth of 9% (1.6 million cubic meters) over the period, driven by the good performance of the US economy, with its positive effects on tourism, as well as purchasing power gains resulting from the sharp drop in energy prices. EBIT, which was down 5% (impact of cyclone Matthew, Jamaica's quality-product supply issues disrupting all operators, transfer of aviation activity to the Cayman Islands), must be seen against the particularly favorable context for margin in 2015;
• lastly, the strong upturn in earnings in Africa (EBIT up by 90%), which recorded volume growth of 65% to 907,000 cubic meters, is attributable both to the performance of the legacy scope (South Africa, Morocco, Madagascar) and to the new scopes acquired mid-2015, in particular SRPP and Djibouti. Bitumen business in Africa (Eres) was penalized by a severe shift in Nigeria's economy, which triggered a sharp impairment of local currency.

Broadly speaking, the 2016 performance must be assessed in the light of the all-time high results posted in 2015, which enjoyed the full impact of the price structure resulting in an exceptional 15% increase in unit margins.

RUBIS SUPPORT AND SERVICES: Refining, shipping and trading-supply

This subgroup includes Rubis Énergie's supply tools for petroleum products: 

Rubis Support and Services' EBIT totaled €69 million (up by 43%):

       -          the results of Sara (71% interest in the Antilles refinery), now fully consolidated, are accounted for in accordance with the decree; they were stable compared with 2015 ;

-          the contribution of the trading-supply-shipping business increased sharply to €39 million on the back of strong growth in the petroleum products trading business and a better contribution from shipping (12 vessels chartered or fully owned). In total, 1.3 million cubic meters were traded within the division in 2016;

-          the bitumen trading-supply business offered fewer opportunities in 2016 given the configuration of prices between the Americas-Europe-Asia regions, leading to a decline in its contribution. Ultimately, Eres' strategy is to diversify its supplies while securing outlets in retail distribution through alliances or joint ventures.

RUBIS TERMINAL: Bulk liquid storage

The storage business reported a 2% increase in revenues. However, activity measured in terms of storage revenues for the total assets of the scope (including equity associates) increased by 5% to €181.2 million, breaking down as follows:

• Storage France (+2%):
  • the petroleum business, which accounts for 76% of billings in France, recorded growth of 4%, in a context where consumption of petroleum products was down slightly (-0.6%) in France,
  • other products, which together account for one-quarter of total revenues, were stable;
• Outside France (+11%):
  • the 8% increase in revenues in terminals in Northern Europe reflects a large increase on the Antwerp site due to new contracts, while the revenues from the Rotterdam site were affected by the renegotiation of spot contracts into medium-term contracts. Both terminals carried out capacity extensions over the year (in Rotterdam, 80% of new capacity built in 2016 is now reserved);
  • Turkey, which posted a 14% increase in revenues, had a good start to the year thanks to good trader activity, while the year-end was marked by the resumption of trader activity with Iraq (Kurdistan).

Reported EBIT rose by 4% to €54 million. Factoring in the share of earnings of equity associates (Antwerp and Turkey), EBIT rose by 8%: 

• storage France grew by 9%, with a positive contribution from trading;
• the Rotterdam and Antwerp sites were down 10% (excluding one-shots in 2015) due to expenses related to the commissioning of new capacity at the Rotterdam site (35,000 cubic meters);
• lastly, the Ceyhan terminal recorded strong growth in its contribution to €6.4 million (+29%), thanks to the readjustment of prices, good trader activity over a large part of the year and the resumption of transit of fuel oil to Kurdistan.

OUTLOOK

The Group is confident in its ability to continue to generate organic growth and to pursue its acquisition policy.

Upcoming events: First-quarter 2017 revenue: May 9, 2017 (Market closing)

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