TIDMVVO
RNS Number : 0922R
Vivo Energy PLC
25 October 2019
25 October 2019
Vivo Energy plc
(LSE: VVO & JSE: VVO)
Third Quarter 2019 Trading Update
Vivo Energy plc, the leading pan-African distributor and
retailer of Shell and Engen-branded fuels and lubricants, provides
the following trading update regarding the quarter ended 30
September 2019 ('Q3').
Commenting on the trading update, Christian Chammas, CEO said,
"We are pleased to have delivered another record quarter, with
gross cash profit increasing by 13% year-on-year to $189 million.
This was a result of stable margins in the Shell-branded markets
and strong volume growth of 15% year-on-year, primarily driven by
the Engen-branded markets. The successful integration of the Engen
transaction, and the completion of the roll-out of the ERP(1)
system across all 15 Shell-branded markets demonstrate the
capability of our teams and we are well on-track to deliver against
our expectations for the full year."
Highlights
-- Q3 Sales volume up 15% year-on-year driven by the contribution of Engen-branded markets
-- Q3 Gross cash profit of $189 million, up 13% year-on-year and
up 4% quarter-on-quarter, driven by higher volumes and stable
margins
-- Q3 Gross cash unit margin of $71 per thousand litres (Q3
2018: $72), ahead of full year guidance
-- Engen integration progressing well, with strong commercial volume performance during Q3
KEY PERFORMANCE INDICATORS(2)
Three-month period ended 30 September
---------------------------------------------
2019 2019 2018
-------------------------- ------------------- ------- ------ -------
($ in millions), if
not otherwise indicated Shell-branded(3) Total Total Change
-------------------------- ------------------- ------- ------ -------
Volumes (million litres) 2,356 2,672 2,323 +15%
Gross Cash Unit Margin
($/'000 litres) 71 71 72 -1%
Gross Cash Profit 168 189 167 +13%
--------------------------- ------------------- ------- ------ -------
Nine-month period ended 30 September
---------------------------------------------
2019 2019 2018
-------------------------- ------------------- ------- ------ -------
($ in millions), if
not otherwise indicated Shell-branded(3) Total Total Change
-------------------------- ------------------- ------- ------ -------
Volumes (million litres) 7,034 7,657 6,951 +10%
Gross Cash Unit Margin
($/'000 litres) 70 70 74 -5%
Gross Cash Profit 490 540 512 +6%
--------------------------- ------------------- ------- ------ -------
(1) Enterprise Resource Planning system
(2) Unaudited management information
(3) Engen Kenya volumes of 7 million litres in Q3 have been
included in Shell-branded volumes due to the rebranding of the
retail sites.
Operational Review
Q3 gross cash profit of $189 million increased by 13%
year-on-year.
Q3 volumes of 2,672 million litres were 15% higher year-on-year,
primarily driven by both the new contribution and strong Commercial
performance in the Engen-branded markets. Gross cash unit margin of
$71 per thousand litres in Q3 was slightly ahead of H1 2019 driven
by improved margins in the Shell-branded markets and broadly
in-line with the previous year period.
Volumes in Shell-branded markets grew by 1%, with the focus
remaining on driving gross cash profit growth by balancing volume
growth with strong margins. As a result, Shell-branded margins were
slightly ahead of H1 2019, driven by improved Retail margins and
the decision to reduce the low margin Commercial reseller business
in certain markets in Q2; additionally volume growth in each of the
segments was in line with H1 2019. A number of initiatives are
underway in order to drive Retail volume growth and we remain on
track to achieve our target of opening a net total of between
80-100 sites this year.
Outlook
Year-to-date group volume growth increased to 10% against the
comparable period, and we continue to expect volume growth for the
full year, including the Engen-branded markets, to be within our
guidance range of low to mid double-digit percentage growth. Group
year-to-date gross cash unit margins are $70 per thousand litres,
which remains above our initial full year expectations and we
continue to expect to be slightly ahead of initial guidance of the
high sixties per thousand litres for the full year. As a result, we
continue to expect another year of strong gross cash profit
growth.
Conference call
Vivo Energy plc will host a conference call for analysts and
investors this morning at 09:00 UK time, with the following dial-in
details:
Dial-in: +44 330 336 9126 / +27 11 844 6054
Passcode: 4806314
A replay of the conference call will be available after the
event at https://investors.vivoenergy.com
Ends
Media contacts: Investor contact:
Vivo Energy plc Vivo Energy plc
Rob Foyle, Head of Communications Giles Blackham, Head of Investor
+44 7715 036 407 Relations
rob.foyle@vivoenergy.com +44 20 3034 3735 / +44 7714
134 681
Tulchan Communications LLP giles.blackham@vivoenergy.com
Martin Robinson, Suniti Chauhan
+44 20 7353 4200
vivoenergy@tulchangroup.com
Notes to editors:
Vivo Energy operates and markets its products in countries
across North, West, East and Southern Africa. The Group has a
network of over 2,100 service stations in 23 countries operating
under the Shell and Engen brands and exports lubricants to a number
of other African countries. Its retail offering includes fuels,
lubricants, card services, shops, restaurants and other non-fuel
services. It provides fuels, lubricants and liquefied petroleum gas
(LPG) to business customers across a range of sectors including
marine, mining, construction, power, transport, and manufacturing.
Jet fuel is sold to customers under the Vitol Aviation brand.
The Company employs around 2,700 people and has access to over
1,000,000 cubic metres of fuel storage capacity. The Group's joint
venture, Shell and Vivo Lubricants B.V., sources, blends, packages
and supplies Shell-branded lubricants at plants in six
countries.
This announcement is available on the Company's website:
http://investors.vivoenergy.com
Forward looking-statements
This announcement includes forward-looking statements. These
forward-looking statements involve known and unknown risks and
uncertainties, many of which are beyond the Company's control and
all of which are based on the Directors' current beliefs and
expectations about future events. Forward-looking statements are
sometimes identified by the use of forward-looking terminology such
as "believe", "expects", "may", "will", "could", "should", "shall",
"risk", "intends", "estimates", "aims", "plans", "predicts",
"continues", "assumes", "positioned", "anticipates" or "targets" or
the negative thereof, other variations thereon or comparable
terminology. These forward-looking statements include all matters
that are not historical facts. They appear in a number of places
throughout this report and include statements regarding the
intentions, beliefs or current expectations of the Directors or the
Group concerning, among other things, the future results of
operations, financial condition, prospects, growth, strategies of
the Group and the industry in which it operates.
No assurance can be given that such future results will be
achieved; actual events or results may differ materially as a
result of risks and uncertainties facing the Group. Such risks and
uncertainties could cause actual results to vary materially from
the future results indicated, expressed, or implied in such
forward-looking statements.
Such forward-looking statements contained in this report speak
only as of the date of this report. The Company and the Directors
expressly disclaim any obligation or undertaking to update these
forward-looking statements contained in the document to reflect any
change in their expectations or any change in events, conditions,
or circumstances on which such statements are based unless required
to do so by applicable law.
This information is provided by RNS, the news service of the
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END
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