Vivo Energy expanding network after Covid-affected first half
Vivo Energy
149.40p
07:36 25/07/22
Vivo Energy reported a 7% fall in volumes in its first half on Tuesday, to 4.62 billion litres, while revenues fell 14% to $3.38bn (£2.63bn).
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The FTSE 250 company, which retails Shell and Engen-branded fuels in African markets, said its gross profit was 18% weaker at $261m, as its gross cash margin was 7% lower at $65 per 1,000 litres.
Gross cash profits were 15% lower at $300m, and adjusted EBITDA was down 34% at $140m.
Vivo’s net income plunged 82% to $13m, while diluted earnings per share were down 88% at one cent, and adjusted diluted earnings per share were 85% weaker, also at one cent.
On the operational front, Vivo Energy said it supported its employees, customers, and communities through “a range of initiatives” in the six months ended 30 June, to mitigate the impact of Covid-19.
It also said it protected the business by reducing discretionary marketing spend, pausing uncommitted capital expenditure, and temporarily reducing the supply of fuels.
The company said it maintained its safety focus, with a total recordable case frequency for the period of zero.
Vivo also expanded its retail footprint by a net total of 30 new retail service stations, and 23 non-fuel retail offerings.
The firm said it was finalising its agreements to acquire several small dealer networks in Engen markets, as well as new quick-service restaurant joint ventures.
“We entered the Covid-19 pandemic in a position of strength and ended the period cautiously optimistic, having seen a rebound in June in both volumes and margins from their April lows,” said chief executive officer Christian Chammas.
“We are a resilient business, our business model remains unchanged and we continue to position ourselves for future growth.”
At 0911 BST, shares in Vivo Energy were up 2.94% at 77.1p.