30th Apr 2020 10:04
(Alliance News) - Vivo Energy PLC on Thursday withdrew its recommendation to pay a final dividend for 2019 due to Covid-19-related uncertainty, despite a strong first quarter for 2020.
For the three months to the end of March, Vivo - a downstream petroleum company which sells products from Royal Dutch Shell PLC and Engen Petroleum - reported gross cash profit of USD179 million, a 6% rise from USD169 million the year before.
This was due to strong trading in January and February, in spite of reduced demand in March as lockdowns were implemented around the world.
First-quarter volumes meanwhile were up 7% year-on-year at 2.60 billion litres, as Vivo benefited from two months of additional contributions from Engen and an improved Shell-branded Retail performance, before government restrictions were imposed.
Looking ahead, Vivo reported reduced volumes in April as more governments implemented restrictions to reduced the spread of the virus. Volumes have been running at around half of expected levels in April to date.
As a result of the pandemic, Vivo was withdrawn its guidance for 2020 as a whole and has withdrawn its resolution proposing the payment of a final dividend for 2019 from the annual general meeting scheduled for May 2020.
"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," said Chief Executive Officer Christian Chammas.
Shares in Vivo Energy were down 0.6% at 78.60 pence on Thursday in London, while its Johannesburg shares were down 2.9% at ZAR16.51.
By Dayo Laniyan; [email protected]
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