3rd Mar 2021 09:16
(Alliance News) - Vivo Energy PLC on Wednesday reported an overall weaker performance for 2020, as volumes declined on severe mobility restrictions, while revenue dropped on falling oil prices and lower demand.
For the year, Vivo - a downstream petroleum company which sells branded products from Royal Dutch Shell PLC and Engen Petroleum - reported a pretax profit of USD175 million, down 29% from USD246 million the year before.
This was on revenue that declined 17% year-on-year to USD6.92 billion from USD8.30 billion, as a result of lower volumes solid and the decline in crude oil prices over the year.
Total volumes were down 7.5% at 9.64 million litres from 10.42 million litres the prior year, as mobility restrictions imposed around the world following the pandemic's spread affected the Aviation, Marine and Retail businesses.
In Aviation, volumes fell 55% year-on-year as most airlines were restricted to cargo and repatriation flights across Vivo's markets, while the Marine business volumes also declined due to lower cargo and cruise line movements.
Vivo Energy declared a final dividend of 3.8 US cents per share for the year, in line with the proposed total payout for 2019 which was withdrawn due to the pandemic.
Looking ahead, Vivo said following a swift recovery in performance in the second half of 2020, these trends are expected to continue into 2021, with the Retail business set to recover, with Aviation and Marine remain subdued.
"The recovery would not have been possible without the actions we took to support our stakeholders which meant that as demand recovered, we were ready and able to supply our customers and keep the continent moving. The strong recovery has reinforced our confidence in the future, and the board has recommended a final dividend of 3.8 cents, in line with our progressive dividend policy. Our markets have not been knocked off course by the pandemic, with a young and growing population driving economic development and future fuel demand," said Chief Executive Officer Christian Chammas.
Shares in Vivo Energy were up 0.9% at 90.30 pence on Wednesday in London, while its Johannesburg shares were 3.3% higher at ZAR19.21 in Johannesburg.
By Dayo Laniyan; [email protected]
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