Investors wait to see if Vivo can make Engen acquisition a success
The pan-African fuel retailer believes its bold moves into the continent will pay off
Vivo Energy, the company behind the Shell and Engen brands in Africa, reported a 13% increase in net income as it looks to massively expand its footprint across the continent. In its first set of annual results since it listed on the London Stock Exchange and JSE 10 months ago, Vivo Energy reported net income of $146m for the year ended-December, up from $130m in 2017. Gross profits also increased 2% to $680m and volumes grew 4% to 9.4-billion litres. The company declared a full year dividend of 1.9 US cents per shares. Vivo Energy already had an extensive network of Shell-branded stations across the African continent but has been catapulted into eight new African jurisdictions when, last week, it concluded its $62m acquisition of 230 Engen service stations outside SA. The company now operates 2,130 retail fuel sites in 23 countries African countries. According to CEO Christian Chammas the company’s primary objective for 2019 is to fully integrate the Engen assets into the business....
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