▶ Rubis Énergie Africa West Africa – East Africa – Southern Africa – Djibouti – Réunion – Madagascar – Morocco
RESULTS OF THE AFRICA SUBGROUP AS OF DECEMBER 31, 2019
Change at constant scope (2)
2019 Before IFRS 16
(in millions of euros)
Volumes distributed (in thousands of m 3 )
-2% -3% +4% +3%
903 120 105
(1) Reported data. (2) Calculation of the change between 2018 and 2019, before IFRS 16.
Volumes in Africa increased by 74%, including volumes from the new business in East Africa (KenolKobil). On a like-for-like basis, volumes of petroleum products were stable (+1%), while volumes of bitumen were down 11% in the wake of the sharp increase seen in Nigeria in 2018, an election year. Overall, Ebit was up 15%, with a 3% increase on a like-for-like basis. Excluding bitumen, all of the petroleum product distribution subsidiaries posted growth of 20%.
The performance of the bitumen segment should be analyzed together with the supply operations housed in Support and Services; overall, the bitumen sector turned in a 5% increase in Ebit. Rubis' presence on the continent was signific antly s treng thened by the 2 acquisitions made during the fiscal year — KenolKobil and Gulf Energy Holdings — providing a leading position in Kenya and neighboring countries. This region posts high economic and demographic growth, generating sustained growth in demand for petroleum products.
Rubis has invested a total of €450 million through these 2 acquisitions. The goal is to integrate the 2 networks in Kenya (447 gas stations), to benefit from the mass effects and brand awareness, and to invest in import logistics for LPG and bitumen — 2 segments with high potential. In 2019 (9 months of consolidation), the main focus was placed on the concentration, build- up and expertise of the teams, while market positions had been taken by the previous shareholder, generating provisions, thereby affecting the profit-making capacity of the company.
BECOMING THE LEADING BRAND IN EAST AFRICA In March 2019, Rubis announced the success of its takeover bid for KenolKobil, of which it has become the 100% shareholder. KenolKobil operates across the entire petroleum products distribution chain in 6 countries in East Africa (Burundi, Ethiopia, Kenya, Uganda, Rwanda and Zambia) and has a network of 401 gas stations.
In December 2019, Rubis strengthened its position in Kenya with the acquisition of Gulf Energy Holdings Limited, a company that groups together all the distribution activities of Gulf Energy Limited, with 470,000 m 3 of petroleum products distributed annually and 46 gas stations. These acquisitions are part of Rubis' strategy to strengthen its positions in regions where demand for petroleum products is growing strongly. With nearly 2 million m 3 of products sold in 2019, Rubis is becoming a major player in petroleum products distribution in East Africa and the market leader in Kenya. The entire network of gas stations will gradually come under the RUBiS brand and will be subject to an ambitious modernization program to comply with international standards, espe cially in terms of safety and environmentally-friendly practices. Customers will enjoy an excellent welcome and will find all the products and services they need to facilitate their mobility and make each gas station visit a unique experience. Rubis also intends to ensure the selective and profitable development of its business with professional customers who are constantly seeking innovative solutions to optimize their automotive fuel and lubricant consumption. This ambition goes hand-in-hand with Rubis' clear determination to be a committed player in the
development of its regions of operation. This is notably reflected in job creation to build, operate and maintain its network of gas stations, in giving priority to safety in its product storage, transport and distribution operations, and lastly in providing a quality working environment that prom otes the training and skill development of its employees. Strict compliance with the Rubis Code of Ethics, a prerequisite for the sustainable development of its business, is also at the heart of the Company's project. Rubis will be a driving force in the development of LPG, especially in Kenya, where the country's authorities actively support the promotion of this energy to combat deforestation and global warming. Lastly, Rubis is committed to supporting associations in the fields of health and education. A partnership with the Faraja Cancer Support Trust, based in Nairobi, Kenya, was signed at the end of 2019 and provides financial and material support to children suffering from cancer. Jean-Christian Bergeron Chief Executive Officer KenolKobil