Paris, France – An oil and gas company, Rubis, has shown strong quarterly results, driven by its retail segment in the Caribbean. Despite concerns over the renewable energy sector, the company reported growth in EBITDA, supported by strategic investments and key growth drivers. The company’s bulk liquid storage joint venture has also performed well, benefiting from recent investments.

In terms of earnings breakdown, Rubis saw significant growth in its support and services division, attributed to the surge in shipping rates due to conflicts in the Middle East. Additionally, the retail and marketing segment experienced growth, particularly in the Caribbean, driven by increased volumes and market share gains. However, FX effects impacted results in Africa, despite strong performance in aviation volumes.

Photosol, a subsidiary of Rubis, saw increased EBITDA as new capacity came online but also contributed to the company’s rising net debt in a high-interest environment. The company faced challenges with higher interest costs impacting bottom-line results, despite overall improved performance.

Looking ahead, Rubis plans to continue its focus on strategic investments, such as expanding into new markets like Guyana and Suriname. The company remains optimistic about its growth prospects, with expectations of adjusted net income and EBITDA to remain flat. Despite concerns over the profitability of renewable energy projects, Rubis aims to leverage its market position in emerging markets while considering opportunities for growth and expansion.

As investors respond positively to Rubis’ strong performance, the company continues to navigate challenges related to dividend sustainability and capital intensity. Despite reservations about the renewable energy sector, Rubis remains committed to its expansion plans, aiming to capitalize on emerging market demand for energy supply.

In conclusion, Rubis’ strategic investments and diversified business segments position the company for continued growth and profitability. However, concerns persist over the company’s renewable energy ventures and overall leverage, prompting further scrutiny of its capital allocation strategies. As Rubis seeks to balance profitability with sustainable growth, investors will closely monitor the company’s performance in the evolving energy landscape.