25th Mar 2020 08:30
(Alliance News) - Vivo Energy PLC said Wednesday it has withdrawn its guidance for 2020 due to the Covid-19 outbreak, and will be reviewing the payment of its 3.8 US cents per share dividend for 2019 at its next general meeting on May 20.
In early March, Vivo said it expects to deliver a mid-single digit rise in gross cash profit for 2020, driven by improved volume growth in Shell- and Engen-branded markets.
For 2020 to date, Vivo - a downstream petroleum company which sells products from Royal Dutch Shell PLC and Engen Petroleum - said it had traded in line with expectations with minimal impact from the Covid-19 pandemic due to the small number of confirmed cases in the 23 African countries in which it operates.
Recently, several of Vivo's host governments - particularly Morocco, Kenya and Tunisia - have taken action prevent the spread of the virus within their countries. The measures have included the closure of borders, schools and restrictions on the movement of people.
Vivo said that as fuel is considered a critical resource, its retail sites remain open, and the group has continued to supply its commercial customers; however it noted a reduction in aviation and transport volumes due to the restrictions.
Looking ahead, Vivo said it has started the period of uncertainty in a strong financial position, with long-term debt of USD400 million, with short-term capital resources amounting to USD1.7 billion in credit facilities and cash.
Shares in Vivo Energy were up 4.0% at 74.90 pence on Wednesday in London, while its Johannesburg shares were untraded, last quoted at ZAR15.19.
By Dayo Laniyan; [email protected]
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