Vivo Energy declares maiden dividend, but warns of risks in Morocco
Vivo Energy, which listed on the Johannesburg and London stock exchanges in May, declared a maiden interim dividend of one US cent on Thursday.
The group, which owns more than 1,800 Shell service stations across 15 African countries and is in the process of buying about 300 Engen garages in nine countries outside of SA, reported revenue grew 14% to $3.7bn in the six months to end-June.
Net income, however, declined 1% to $71m.
Measured in millions of litres of petrol, diesel and lubricants sold, Vivo grew 4% to 4.6-billion litres.
Under the "risks and uncertainties" section of the interim results Vivo released on Thursday was a warning that the Moroccan government, under pressure from consumer activism, was considering re-introducing fuel price regulation, which was halted in 2015.
"Whilst discussions have taken place, at this stage no plans regarding price regulation have been confirmed," the results statement said.
Morocco contributed 22% of Vivo’s earnings before interest, tax, depreciation and amortisation (ebitda) during the first half of its 2018 financial year, down from 29% in its 2017 financial year.
Regarding the Engen deal, Vivo CEO Christian Chammas said in the results statement that the group was making progress in getting regulatory and anti-trust approval in various countries.
"We continue to work on the final outstanding items whilst discussing the timing of completion with Engen."
Among the highlights of the reporting period, Vivo listed opening the Ivory Coast’s first KFC outlet at a Shell service station.