Vivo Energy sales volumes recover after lockdown restrictions eased

Vivo Energy, the owner of the Shell and Engen brands in 23 African countries, said on Wednesday that sales volumes recovered 7% in the year to end-December, as lockdown restrictions and curfews eased, allowing motorists to drive around more freely.

The company, which is in the process of being acquired by Vitol Group in a $2.3bn deal, said revenue rose 22% to $8.4bn, boosted by higher average international oil prices.

Its adjusted earnings before interest, taxes, depreciation, and amortisation — a measure of operational performance — rose 24% to $447m.

“We were pleased with the recovery in volumes to close to pre-pandemic levels,” CEO Christian Chammas said in a statement, adding that the retail segment predominantly drove the financial performance.

Vivo, which has a primary listing in London and secondary listing on the JSE, opened a net total of 133 new sites during the review period. This was 21% higher than its initial guidance.

Volumes in the commercial segment were flat year on year, mainly due to the completion of a large, low-margin supply contract in September 2020. Excluding the supply contract, volumes were 6% higher year on year but 3% behind 2019.

Its core commercial business offers a range of services including the supply of bulk fuel to customers in the transportation and mining, construction and power sectors, as well as LPG to both consumers and industry.

mahlangua@businesslive.co.za