Release Date: September 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Solid operating performance with stable EBITDA on a comparable basis.
- Cash flow generation remains high, illustrating strong operational health.
- Volume increase of 4% across Africa, Caribbean, and Europe.
- Renewable electricity development continues as planned, with a 55% increase in secured solar projects year-over-year.
- Healthy balance sheet with a leverage ratio of 1.6 times.
Negative Points
- EBITDA growth slower than anticipated due to bad weather in France and decreased spot prices.
- Political and economic challenges in Africa, particularly in Kenya, affecting performance.
- Net income down by 4% on a comparable basis and 24% versus reported numbers.
- Increased net financial charges due to higher interest rates and renewed financing lines.
- Foreign exchange losses amounted to EUR 32 million, a 60% increase from the previous year.
Q & A Highlights
Q: What explains the decrease of 8% in Europe despite increasing volume and gross margin?
A: Marc Jacquot, Group Chief Financial Officer: The decrease is due to one-off impacts that affected the EBITDA level in Europe. These one-offs are not integrated when looking at the margin.
Q: What explains the decrease of 30% in gross margin in Africa?
A: Marc Jacquot, Group Chief Financial Officer: The gross margin in Africa decreased from EUR190 million in H1 2023 to EUR135 million in H1 2024. This EUR56 million variation is due to a basis effect from 2023, which included EUR25 million of extra margin in Nigeria and EUR11 million from the Madagascar government related to 2022 pricing formula non-implementation. These did not recur in 2024.
Q: Is your net income guidance stable versus 2023 on a comparable basis or a published basis?
A: Marc Jacquot, Group Chief Financial Officer: The guidance is on a comparable basis. However, we expect a capital gain from the sale of Rubis Terminal, which will contribute to this guidance.
Q: How have the months of July and August compared to the second quarter in Africa in terms of volume and margin?
A: Marc Jacquot, Group Chief Financial Officer: We did not observe major changes in Africa during this period. However, we did not face significant negative effects from exchange rates.
Q: Can we consider a 25% tax rate as normative for the full year and beyond?
A: Marc Jacquot, Group Chief Financial Officer: Yes, we can consider the same tax rate as last year plus the impact of the global minimum tax, which is estimated to range between EUR20 million and EUR25 million for the year.
Q: What is the expected timing for the closing and payment of the dividend from the sale of Rubis Terminal?
A: Clarisse Gobin-swiecznik, Managing Director - New Energies, CSR and Communication: We expect the closing to happen before the end of the year, likely in Q4 2024, with the dividend payment expected shortly after, probably before the end of the year.
Q: Does the stable net income guidance of EUR355 million in 2024 imply more than EUR220 million in H2, and is this increase due to the expected Rubis Terminal capital gain?
A: Marc Jacquot, Group Chief Financial Officer: Yes, the sale of Rubis Terminal will contribute to the net income in H2 and is part of this guidance.
Q: What is the expected base dividend per share and growth rate, and will there be a special dividend for the Rubis Terminal sale?
A: Marc Jacquot, Group Chief Financial Officer: The dividend related to the sale of Rubis Terminal will be declared as an exceptional dividend. The usual growth rate for the base dividend will continue, and the special dividend will be distributed separately.
Q: Do you plan to buy back shares to compensate for employee compensation plans?
A: Marc Jacquot, Group Chief Financial Officer: Yes, buybacks can be considered to compensate for capital increases related to employee compensation plans.
Q: Are there any more questions?
A: Clémence Mignot-Dupeyrot, Head of Investor Relations: There are no more questions. Thank you all for joining us tonight. We look forward to talking to you again at Photosol Day and remain available for any further questions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
