Puma Energy announces Q3 2019 results
26 Nov 2019
Singapore, 26 November 2019 – Puma Energy, a leading global energy business, today released its unaudited financial results for the third quarter ended 30 September 2019.
Commenting on the results, Emma FitzGerald, CEO, said:
“Puma Energy has delivered EBITDA of US$130 million for the third quarter, in line with our guidance, and sales volumes for the period increased on the year. We are keeping a strict focus on costs and have made a series of operational improvement initiatives based on our strategic insights, factors which have helped ensure that gross profit remained stable both for the quarter and year to date despite challenging market conditions putting pressure on unit margins. A change in suppliers for our UK business affected cash flows and we have also impaired our Australian fuel business, impacting net profit for the period.
Our customer-focused five-year strategic plan will enable us to deliver sustainable profit growth and we are already starting to see the benefits of our operational improvements during 2019, with further impact from this programme expected during 2020.
We remain on track to deleverage the balance sheet by the end of 2020. The sale of our business operations in Indonesia and Paraguay are good examples of the types of transactions that we will work on as we streamline our portfolio, enabling us to pay down debt and ensure we are focused on those markets that will drive growth.
We expect conditions in some markets to remain challenging but I am confident that the combination of operational improvements – as part of our customer-focused strategy – ongoing cost control, and disciplined investment in growth will result in a truly sustainable business.”
- Sales volumes continue to increase, up 3%, driven by increases in America and Africa, with Europe and Asia Pacific marginally down versus the same quarter last year.
- Throughput volumes are up 15%, due to increased activity, particularly in Europe and Asia Pacific.
- Gross profit is down 1%, at US$ 339 million for the period, due to higher volumes being offset by lower unit margins, particularly in Angola, Australia and Puerto Rico.
- Fixed costs have declined by 3% and now stand at US$ 202 million, reflecting reductions in staff related costs and property costs.
- EBITDA is US$ 130 million for the quarter, in line with guidance.
- Net loss for the period of -US$ 376 is impacted by an impairment on the Australian fuel business and the end of hyperinflation accounting in Angola.
- Capex of US$ 37 million is down 40%, due to selective spending on infrastructure investments during the quarter.
- Operating cash flow of -US$ 62 million is caused by timing effects, shorter payment terms with suppliers and a change to the business model in the UK.
- Credit terms with suppliers remain inside the 15-day policy, with a slight improvement at 13 DSO.
- Business strategy is centred on operational improvements and maximising efficiency of the global portfolio, which is reflected in steady sales volumes and EBITDA for the quarter.
- On 2 October, Puma Energy announced the sale of its business operations in Paraguay to Impala Terminals Group for a purchase price of US$ 200 million, subject to working capital adjustments. The down-payment of this transaction, combined with the divestment of Indonesia, contributed US$ 37 million to asset disposals for the quarter.
- Completed maintenance turnaround of the Papua New Guinea refinery, on time and to budget.
- For the purpose of increasing value-creation in the Company, Puma Energy has established focused business segments. For the third quarter: retail represents 46%, B2B 13%, Aviation 10%, and Lubricants 2% of total gross margin.
- The Company is prioritising investment in its retail networks, after finalising all major terminal construction projects in 2018. As such, US $11 million out of a total of US$ 37 million capex for the quarter was related to the retail segment.
For press queries, please contact:
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Further information can be located at: https://www.pumaenergy.com/en/investor-relations/home/
About Puma Energy
Puma Energy is a leading global energy business with a customer-focused approach to safely providing energy solutions in 46 countries across six continents. Puma Energy has more than 3,000 retail sites, a presence at over 80 airports and a network of more than 100 storage terminals. Our purpose is to energise communities to help drive growth and prosperity by sustainably serving our customers’ needs in high potential countries around the world
For further information visit: www.pumaenergy.com
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