Despite an environment marked by the persistence of the health crisis, the extreme volatility of energy prices and inflationary pressures, the Group once again demonstrated the solidity of its business model, succeeding in generating growth of 4% in its net income, Group share and 7% in its cash flow (excluding Rubis Terminal) compared to 2020. Adjusted net income, Group share (excluding non-recurring items, IFRS 2 expenses and the contribution of Rubis Terminal) is almost back to the pre-pandemic level (record level observed in 2019), despite the constraints that weighed on overall mobility.

2021 is also the year of a major strategic shift with a significant acquisition announced in the photovoltaic sector and a development in hydrogen, bringing Rubis directly into the energy transition.

The Group’s multi-country and multi-segment positioning as well as its dual midstream/downstream structure made it possible to overcome difficulties of all kinds, while the Rubis Terminal JV once again demonstrated its resilience and successfully consolidated its subsidiary Tepsa in Spain, enabling it to generate 6% growth in EBITDA excluding Turkey.

The Group retains the capacity for recovery with:

• •the gradual return of pre-Covid volumes, particularly in the Caribbean, where tourism and aviation are still at half of 2019 volumes;
• •the growth potential in East Africa thanks to the investments made;
• •the return to a normalised situation in Madagascar;
• •the stabilisation of the situation in Haiti.

The Group’s financial position at the end of the financial year remained solid, with a ratio of net debt to gross operating profit of less than 1. After the acquisition of Photosol, this same ratio is estimated at 2.5 times, reduced to 1.7 by adjusting the project debt (without recourse).

Overall, Rubis generated cash flow of €465 million (+7% compared to 2020, excluding Rubis Terminal). Unlike the 2020 financial year, the upward trend in supply prices generated a change in working capital of €191 million, bringing operating cash flow to €274 million.

Investments are in line with the Group’s long-term trend, at €205 million and are split  two-thirds for maintenance and one-third for growth. An amount of €79 million was invested in HDF Energy (Hydrogène de France), with a 18.5% stake, coupled with an industrial agreement.

Lastly, €153 million was allocated to a share buyback programme for cancellation of shares.

As of 31 December 2021, financial debt, excluding lease liabilities, mainly consisted of borrowings from credit institutions for a total amount of €1,014 million, of which €228 million maturing in less than one year, and €276 million in bank overdrafts. Given the Group’s net debt to shareholders’ equity ratio as of 31 December 2021 and its cash flow, the repayment of this debt is not likely to be put at risk due to a breach of covenants. The net increase in financial debt compared to 31 December 2020 is mainly explained by the share buyback programme (€153 million), the investment in HDF Energy (€79 million) and the increase in the working capital requirement (€191 million).

The Retail & Marketing activity includes all fuel distribution activities (service station networks), liquefied gas, bitumen, commercial heating oil, aviation and marine fuels and lubricants in three geographical areas: Europe, the Caribbean and Africa.

Diesel prices (in USD) were up by 59% compared to 2020 with high volatility during the financial year. This change weighed on unit margins, which were down 5% compared to 2020 and 3% compared to 2019.

Generally speaking, Rubis operates in markets that allow it to transfer price volatility to the end customer (price formula systems or no constraints at all on prices), and as such to keep its margins stable over the long term.

Retail distribution volumes increased by 7% compared to 2020. Despite aviation volumes still down significantly compared to 2019, these volumes are close to the level achieved before the pandemic, thanks to the resilience of LPG sales and the strong growth in bitumen sales.

Through its 31 profit centres, the activity recorded retail distribution volumes of 5.4 million m3 during the period (+7%).

These volumes were spread across the three regions – Europe (16%), the Caribbean (38%) and Africa (46%) – offering the Group valuable diversity in terms of climate, economy (emerging countries and developed economies) and by type of end use (residential, transport, industry, utilities, aviation, marine, lubricants).

By product category, volumes break down as follows: 68% for all fuel oils (automotive fuel, aviation, non-road diesel and lubricants), 23% for LPG and 9% for bitumen.

The gross sales margin reached €633 million, an increase of 2%, but still below the record level of 2019, due to the pandemic and the decrease in the contribution from Haiti. After a strong increase in the unit margin in 2020 due to the fall in oil prices, the unit margin in 2021 was down by 5% compared to 2020, but nevertheless remained above the levels of 2019 for Africa and Europe.

EBITDA and EBIT operating aggregates recorded increases of 5% and 8% respectively in 2021 without, however, returning to the level reached in 2019 (down by 6 and 11% respectively).

Europe, thanks to its LPG positioning, recorded an EBIT of €71 million, up 16% compared to 2020 and above the pre-Covid level (€62 million).

The Caribbean region recorded a significant improvement in the second half of 2021, driven by the recovery in the tourism/aviation sector. The situation in Haiti remained tense, but showed signs of stabilisation at the end of the financial year. In total, EBIT reached €82 million, compared to €80 million in 2020.

Finally, Africa recorded an excellent annual performance with an EBIT of €136 million (+6% vs 2020). The increase in volumes and the contribution of Kenya, thanks to the actions undertaken (commercial investments and rebranding) and the strong recovery in results in Réunion Island are the main factors behind this performance.

Capital expenditure totalled €159 million over the financial year, spread across the 27 operating subsidiaries. It covered recurring investments in service stations, terminals, tanks, cylinders and customer facilities, aimed principally at bolstering market share growth, as well as investments in facility maintenance.

The Europe zone has the Group’s strongest liquefied gas positioning (≈75% of volumes) and in turn, greater residential demand, which explains its lower exposure to health restrictions.

The climate index indicates more severe winter months in 2021 compared to 2020, at 17%. This factor, combined with the lower restrictions, explains the good performance of volumes over the period at +7%.

However, the environment of a sharp increase in supply prices (+59%) weighed on unit margins, which crumbled by 6%. Lastly, a depressed base effect in 2020, due in particular to negative inventory effects, explains the 16% increase in EBIT, exceeding the level of 2019 (+14%).

A total of 19 facilities distribute fuel locally (400 service stations, aviation, commercial, LPG, lubricants and bitumen).

The Caribbean zone recorded a recovery in its volumes of 5% after the sharp decline (-15%) in 2020. Although there was a strong recovery (+34%), aviation volumes remained at almost half of the volumes sold before the pandemic. The other segments continued to recover, with the exception of the LPG sector affected by the exceptional situation in Haiti. The economic, political and security conditions in Haiti remained difficult. Excluding Haiti, the EBIT for the Caribbean region increased by 20%.

Income was up sharply with the exception of Madagascar in petroleum products distribution (price structure) and the bitumen sector (end of advantageous supply contracts).

In Madagascar, the freezing of the price structure at a time when international prices were rising strongly penalised distribution margins and results. The public authorities recognise the shortfall in the profession and are working to implement compensation measures.

The bitumen sector continued to experience good commercial developments (volumes: +33%) but was nevertheless penalised by the return to normal supply conditions after a 2020 financial year which had benefited from particularly advantageous contracts.

In East Africa, results (EBIT) continued to improve at +38%, despite a chaotic year due to chronic lockdowns; the service station renovation programme including rebranding and the opening of associated stores is being accelerated (171 stations have been renovated out of a network of around 400) with tangible results in terms of footfall at points of sale and average unit flows.

This sub-group includes Rubis Énergie’s supply tools for petroleum products and bitumen:

• •the 71% interest in the refinery in the French Antilles (SARA);
• •the trading-supply activity, active in white products in the Caribbean (Barbados) and especially in bitumen in the Africa/Middle East region with an operational head office in Dubai;
• •in support-logistics, the shipping activity (15 vessels, of which six fully-owned) and “storage and pipe” in Madagascar.

The results of the SARA refinery experienced high volatility between 2019 and 2021, notably due to the work related to the Major Shutdown and remain regulated by a formula guaranteeing a return of 9% on equity. The 2020-2021 average contribution of €35 million in EBIT is in line with previous financial years.

The contribution of the Support & Services activity (excluding SARA) was €97 million (+28%) and breaks down as follows:

• •the volumes handled in trading-supply show an increase in unit margins, while shipping benefited from the combined effect of better freight rates, investments in new vessels and the development of bitumen sales in Africa;
• •port services and pipe activities in Madagascar resumed their normal pace, after a 2020 financial year affected by the pandemic-related restrictions.

Against the Covid background, the Rubis Terminal JV demonstrated exceptional resilience, recording a 6% increase in its EBITDA to €121 million including in proforma the Spanish subsidiary Tepsa over 12 months in 2020 and excluding Turkey.

In January 2022, Rubis Terminal finalised the disposal of its activity in Turkey, thus refocusing its activities in Europe and reducing the volatility of its results. Excluding Turkey, storage revenues increased by 5%, of which +7% for petroleum products, driven by demand for biofuels in Spain (+46%). The trend in chemical storage remained firm (+4%), particularly in the ARA (Amsterdam, Rotterdam, Antwerp) zone. Spain, for its first full year of contribution, was up by 6%. Turkey, sold in early 2022, was down by 26% due to the absence of contango.

The average capacity utilisation rate rose to 93% compared to 91.5%.

The cost structure was well managed (+1.4%), generating EBITDA of €121 million, up 6% compared to 2020 proforma.

Investments during the financial year represented €58 million (including 50% of Antwerp) compared to €71 million and can be broken down as follows:

• •maintenance investments in the consolidated scope: €27 million compared to €32 million;
• •development investments in the consolidated scope: €31 million compared to €40 million.

The free cash flow after tax, financial expenses and maintenance investment amounted to €50 million on an annual basis, which, compared to total equity of €554 million, gives a cash return of 9%.

Due to rounding, the sum of figures in these tables and other documents may not exactly add up to totals and percentages may not accurately reflect absolute values.