Vivo Energy withdraws final dividend

Fuel and lubricants distributor Vivo Energy withdrew its final dividend on Thursday despite posting improved first-quarter profits.

The firm said first-quarter gross cash profits improved 6% in the three months ended 31 March to $179m - primarily driven by its "strong start" in January in February.

Volumes rose 7% and gross cash unit margins remained "resilient" at $69 per thousand litres.

However, the FTSE 250-listed group cautioned that its March performance was affected by Covid-19 related measures in the likes of Morocco, Tunisia, Mauritius and Reunion.

Vivo then said it felt it "prudent" to withdraw recommendation of its 2019 final dividend, but said it would consider an additional dividend payment once the group sees "more certainty" in its markets.

Chief executive Christian Chammas said: "Our gross cash profit rose 6% to $179m in Q1 reflecting a strong start to the year before Covid-19 related restrictions on movement imposed in March created significant and ongoing reductions in demand.

"We have responded rapidly to the challenges raised by Covid-19 to protect our people and customers, our communities and our business, and with our robust balance sheet and access to liquidity we have a strong base to navigate through these uncertain times."

As of 0920 BST, Vivo shares were up 8.47% at 85.80p.