Vivo Energy to pay dividend but pulls guidance
Vivo Energy
149.40p
07:36 25/07/22
Fuel distributor Vivo Energy said it still intended to pay a full year dividend but pulled its guidance due to the coronavirus, the company said on Wednesday.
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The pan-African retailer and distributor of Shell and Engen-branded fuels and lubricants said trading for the year to date had been in line with expectations as there had been minimal impact from Covid-19.
“However, in recent days, a number of our host governments, including in Morocco, Kenya and Tunisia, have acted decisively to prevent the spread of COVID-19 within their countries. These measures have included the closure of borders, schools and in certain cases, imposing restrictions on the movement of people,” Vivo said in a trading update.
The company said its retail sites remained open and continued to supply to commercial customers, but reported a reduction in aviation and transport volumes from government restrictions on travel. Stock levels were being monitored and credit levels to make sure they were managed effectively in light of changing demand.
The decision to pay $34m in dividends would be reviewed ahead of Vivo's annual general meeting on May 20.
“We have entered this period of uncertainty in a strong financial position and year-end 2019 net debt to EBITDA of 0.5x. As at the end of February 2020, the group had long-term debt of $0.4bn, with available short-term capital resources amounting to $1.7bn,” the company said.
“This comprises $200m of an undrawn committed multi-currency revolving credit facility, $1.1bn of undrawn unsecured short-term bank facilities within our 23 operating entities for working capital purposes, and $400m of cash on hand.”