Rubis: history, ownership, mission, how it works & makes money

A Brief History of Rubis

Founded in 1990, Rubis is a French company specializing in the distribution of petroleum products and liquefied petroleum gas (LPG). Initially focused on the Caribbean market, the company has expanded its operations into various regions, including Africa and the Indian Ocean. As of 2023, Rubis operates in over **30 countries**, employing approximately **1,200** people. The company is listed on the Euronext Paris under the ticker symbol “RUI.”

In 2007, Rubis acquired a controlling stake in the operator of the fuel distribution business in the French West Indies, marking a significant expansion. This acquisition contributed to Rubis achieving revenues of **€2.5 billion** in 2008. By 2013, Rubis diversified its portfolio with the acquisition of the assets of the Belgian distributor of fuel, resulting in a significant increase in its market share.

A pivotal moment for Rubis came in 2016 with the acquisition of the fuel distribution business of Total in several African countries, which further strengthened its position in the market and expanded its operational footprint. This acquisition alone accounted for about **€500 million** in additional revenue, making Rubis one of the leading players in the African fuel distribution segment.

In 2018, Rubis reported an operating profit of **€222 million**, showcasing steady growth over the years. The company continued to invest heavily in renewable energy, aiming to diversify its energy sources and reduce its carbon footprint, reflecting industry-wide trends focusing on sustainability.

As of mid-2023, Rubis' share price was around **€37**, reflecting a market capitalization of approximately **€2.2 billion**. The company has also paid out regular dividends, with a dividend yield of about **4.5%** as of 2023. This consistent dividend policy emphasizes Rubis' focus on returning value to shareholders in addition to achieving growth through its diversified operations.

Rubis continues to enhance its strategic position through ongoing investments in infrastructure and technology, ensuring that it is well-prepared to meet future energy demands while maintaining a strong commitment to sustainability. Its focus on developing LPG distribution networks has also opened new avenues for growth, particularly in emerging markets.

A Who Owns Rubis

Rubis is a prominent French company involved in the distribution of petroleum products and the management of storage facilities for hydrocarbons. As of October 2023, Rubis is publicly traded on the Euronext Paris under the ticker symbol RUI.

Ownership of Rubis is characterized by a mix of institutional and retail investors along with company insiders. The distribution of shares as of the latest financial data indicates the following:

Institutional ownership is primarily composed of large investment firms and mutual funds, which often hold substantial stakes for strategic reasons. Recent reports indicate notable holders include Amundi Asset Management with a stake of approximately 9.5%, and BNP Paribas Asset Management with an ownership of around 7%.

In terms of the company's share performance, Rubis had a market capitalization of approximately €1.85 billion as of October 2023. The company's stock price has seen fluctuations, with a 52-week high of €22.50 and a 52-week low of €18.20.

Rubis has consistently reported solid financial results. For the first half of 2023, the company reported revenues of approximately €1.1 billion, an increase of 12% compared to the same period in 2022. The net profit for the same timeframe stood at €85 million, representing a profit margin of roughly 7.7%.

As Rubis operates in a sector sensitive to global oil prices, the company has implemented risk management strategies, including hedging against price fluctuations. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q2 2023 amounted to €150 million, indicating a robust operational performance.

In summary, Rubis is owned by a diverse group of stakeholders, with the majority belonging to institutional investors, and has demonstrated resilient financial performance amid market fluctuations.

Rubis Mission Statement

Rubis, a prominent player in the energy sector, focuses on providing sustainable and innovative energy solutions. The mission statement emphasizes commitment to excellence, integrity, and responsibility in all operations. The company aims to support the energy transition through investments in renewable energy and efficient distribution systems.

As of the latest financial report in 2023, Rubis has achieved a consolidated revenue of €1.25 billion, a notable increase compared to €1.15 billion in 2022. This growth is attributed to the expansion of its logistics operations and strategic initiatives aimed at enhancing customer satisfaction and operational efficiency.

Rubis operates across various segments, including distribution of petroleum products, storage, and retail. The company’s mission integrates sustainability into its core operations, aligning with global energy trends. The following table details Rubis' operational focus and performance metrics:

Furthermore, Rubis is committed to achieving a reduction in carbon emissions by 30% by 2030, aligning with international climate goals. This initiative is part of their sustainability strategy, which also includes investments in solar and wind energy projects.

In 2023, the company’s capital expenditures reached €150 million, with a significant portion allocated towards enhancing renewable energy capabilities. Rubis aims to increase its investments in sustainable energy technologies, projecting an additional €200 million by 2025.

Rubis' commitment to corporate social responsibility (CSR) is evident in its outreach programs and community support initiatives, benefiting over 10,000 individuals in the regions where it operates. The company believes in giving back to the community as part of its mission to foster sustainable development.

In summary, Rubis’ mission statement reflects a forward-thinking approach, positioning the company as a leader in both traditional and renewable energy sectors. The focus on sustainable growth and innovation reinforces Rubis' role in the evolving energy landscape.

How Rubis Works

Rubis is a French multinational company primarily involved in the distribution of petroleum products. The company operates in two main sectors: distribution of fuels and the storage and distribution of liquefied petroleum gas (LPG). As of 2023, Rubis operates in over 20 countries across the Caribbean, Africa, and the Indian Ocean.

The fuel distribution segment includes retail fuel services, commercial fuels for a range of industries, and the logistics needed to transport and store these products. In 2022, Rubis reported a total revenue of approximately €4.06 billion, reflecting a year-over-year increase driven by heightened demand for energy and fuel products.

Rubis's LPG segment acts as a crucial part of its business model, providing customers with gas for domestic, industrial, and automotive use. As of December 2022, the company operated around 1,200 service stations across its network, cementing its position as a key player in the energy market.

Rubis operates a combination of owned and leased infrastructure, giving it flexibility and control over its supply chain. The company has invested heavily in its logistics capabilities, including storage terminals that enhance its ability to meet customer demands efficiently. As of 2023, Rubis has an estimated storage capacity of 1.2 million cubic meters across its terminals.

In terms of sustainability, Rubis is actively pursuing initiatives to reduce its carbon footprint. The company aims to increase its renewable energy offerings, with plans to invest around €200 million in green energy projects by 2025. This move aligns with the broader industry shift towards cleaner energy solutions.

Financially, Rubis maintains a robust balance sheet, characterized by a solid current ratio of 1.5 and a debt-to-equity ratio of 0.6, indicating healthy liquidity and manageable debt levels. The company's dividend yield stands at approximately 4.2%, making it an attractive option for income-focused investors.

Furthermore, Rubis's strategic acquisition of local distributors in the Caribbean and African markets has bolstered its position, allowing for deeper market penetration and enhanced service capabilities. This growth strategy led to a compound annual growth rate (CAGR) of 7% in the company's earnings over the past five years.

In summary, Rubis's business model is underpinned by its diverse operations in fuel and LPG distribution, strategic investments in logistics and sustainability, and a strong financial footing, making it a significant player in the global energy market.

How Rubis Makes Money

Rubis SCA operates primarily in two segments: Energy and Bulk Distribution. The Energy segment is involved in the storage, distribution, and marketing of hydrocarbons, while the Bulk Distribution segment focuses on providing bulk fuels and lubricants primarily to industrial customers.

Revenue Breakdown

For the fiscal year ended December 31, 2022, Rubis reported revenues of approximately €2.3 billion. The distribution of revenue from its two main segments is as follows:

Energy Segment Overview

In the Energy segment, Rubis operates through several core activities:

• Storage and Distribution: Rubis owns and operates multiple petroleum product terminals. Its storage capacity reached a total of 2.2 million cubic meters as of 2022.
• Marketing and Retail: Rubis manages more than 1,400 service stations across various countries, contributing significantly to its retail sales volume.
• International Operations: A substantial portion of its revenue is generated from markets in the Caribbean, Africa, and France.

For instance, in the Caribbean, it operates through Rubis Caribbean, which accounted for approximately 30% of the Energy segment's revenue in 2022.

Bulk Distribution Segment Overview

The Bulk Distribution segment serves a diverse range of industries from agriculture to construction. Key statistics include:

• Annual sales volume of lubricants reached approximately 200 million liters.
• The segment's contribution to EBITDA was around €75 million, offering a solid margin relative to its total revenue.

Financial Performance Metrics

Rubis has maintained a robust financial profile. Key performance indicators include:

Market Dynamics

The pricing of crude oil and related products significantly impacts Rubis's profitability. In 2022, the average price of Brent crude oil was approximately $98 per barrel, compared to $71 per barrel in 2021. This increase influenced revenue positively due to higher fuel pricing.

Additionally, Rubis is diversifying its business to include renewable energy sources, which is becoming increasingly important in its growth strategy. Investments in biofuels and associated technology continue to expand, reflecting the company's commitment to sustainability.

Competitive Landscape

Rubis faces competition from several major players in the energy distribution and bulk distribution markets. Major competitors include:

• TotalEnergies
• Shell
• ExxonMobil

Despite the competitive environment, Rubis has carved out a niche through strategic acquisitions and expanding its logistics capabilities, allowing it to effectively manage supply chain challenges and maintain profitability.