Vivo Energy to pay 2019 dividend as Q3 trading improves
Vivo Energy said on Friday that it will pay its previously-withdraw 2019 dividend as it reported an improvement in third-quarter volumes amid an easing of coronavirus restrictions.
The pan-African fuel retailer and distributor declared a dividend of 2.7 cents a share for 2019, which will be paid as an interim dividend in December.
The company, which had suspended the dividend due to the impact of the Covid-19 pandemic, said that due to the "rapid actions" it took to protect its business and the resilience of the business model, its balance sheet has remained strong "through these exceptional times".
Vivo said third-quarter volumes of 2.49bn litres were a significant improvement on the second quarter thanks to the easing of Covid-related mobility restrictions in its markets, although remained 7% lower year-on-year.
Volumes in the retail segment improved during the quarter, with a number of countries returning to year-on-year growth. However, due to continuing localised restrictions in some key markets, volumes remained slightly below the previous year. Volumes in the commercial segment were lower as aviation and marine volumes were dented by restrictions on international travel, while volumes in the lubricant division remained robust, it said.
Gross cash profit for the quarter came in at $187m, more or less in line with the previous year’s $189m.
Chief executive officer Christian Chammas said: "Mobility restrictions eased across our host countries during Q3, which has led to a strong improvement in gross cash profit, demonstrating our resilience and the integral nature of our products to economies across Africa.
"We are encouraged by the recent performance, which coupled with the strength of our balance sheet has enabled the board to restart dividend payments. We remain cautiously optimistic and believe that with our diversified and resilient business model, and attractive long term growth opportunities across Africa, we are well positioned for the future."