Vivo Energy earnings grow after Engen acquisition
Vivo Energy reported a rise in full-year earnings on Wednesday as revenue grew, mainly thanks to the contribution from its Engen-branded markets.
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In the year to the end of December 2019, adjusted earnings before interest, tax, depreciation and amortisation rose 8% to $431m on revenue of $8.3bn, up 10% on 2018.
Sales volumes increased 11%, namely due to the contribution of the Engen-branded markets following Vivo’s acquisition of Engen Holdings last year. Shell-branded volumes were up just 1%, it said.
A net total of 15 new Engen-branded service stations were opened during the year in the Engen-branded markets, excluding the 14 Engen-branded sites in Kenya that were re-branded to Shell in line with the company’s plans.
Vivo recommended a final dividend of 2.7 cents per share, up from 1.3 cents the year before and taking the full-year dividend to 3.8 cents, up 15%.
The company said it had entered 2020 with "good momentum" and expects to deliver mid-single digit gross cash profit percentage growth, driven by improved volume growth in the Shell-branded markets, organic growth in the Engen-branded markets and two months of additional Engen contribution in the first quarter.
Capital expenditure is expected to be slightly ahead of 2019 levels at between $150-160m, as it invests in growing and upgrading the retail network across all of its 23 countries, with 80-100 net new sites targeted for the year.
"Following the successful integration of Engen, Vivo Energy has a stronger platform for growth and we are excited by the prospects ahead of us in 2020," it said.