The first half of 2017 saw robust organic growth, reflected by an 8% increase in the overall sales volume at constant scope.
The acquisitions completed in Haiti and Turkey in the first half of 2017 made a positive contribution to results, leading to a 10% increase in EBIT (stable at constant scope). Completion of the acquisition of the shareholders' interests in Turkey resulted in non-recurring income of €14 million. Overall, the Group recorded record net income of €139 million, up 34% (8% at constant scope).
All three of the Group's business divisions contributed to this increase, driven both by organic growth and acquisitions, which generated a strong contribution in terms of profitability:
- Rubis Énergie benefited from an 8% increase in distributed volumes (up 4% at constant scope) that led to a 13% increase in EBIT (up 6% at constant scope), driven in particular by a rebound in business and margins in the bitumen sector in Africa;
- Rubis Support and Services recorded a strong recovery in sales volumes thanks in particular to the bitumen sector. However, the decline in unit margins meant that, excluding non-recurring expenses, EBIT remained stable;
- Rubis Terminal enjoyed strong growth (+11%) of its storage revenues, with all depots operating at full capacity. Rubis Terminal Petrol (Turkey) has been fully consolidated since 1 January and made a strong contribution to the results, generating a 31% increase in EBIT (+7% at constant scope, excluding non-recurring expenses).
Petroleum products distribution
The division posted record EBIT of €126 million (up 13%):
- Europe (EBIT -12%): the contraction was attributable to climatic factors, a negative unit margin effect and a 2016 base effect. At constant scope, EBIT fell by 11%;
- Caribbean (EBIT +25%): the sharp growth in the Eastern Caribbean reflecting expansion of the sales network was offset by a reduction in Jamaica resulting from the local refiner's aggressive positioning. The situation stabilised at the end of the period. The results include Haiti's two-month contribution. At constant scope, EBIT was stable;
- The results in Africa (EBIT +33%) were buoyed by the bitumen sector, notably in Nigeria. The existing scope (South Africa, Morocco, Madagascar and Réunion) continues to grow apace (up 11%).
Refining, shipping, and trading-supply
This sub-group comprises Rubis Énergie's petroleum product supply facilities:
- The 71% interest in the Caribbean refinery (Sara);
- The trading and supply activity, based in Barbados and operating in international markets;
- In logistics support, the shipping activity (12 chartered vessels).
EBIT came in at €31 million compared with €33 million in 2016. Excluding a non-recurring provision, EBIT was unchanged.
The increase in activity and the integration of acquisitions in the second half of the year is expected to sustain earnings growth over full year 2017. PWKD11092017
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