Engine deal fuels Vivo Energy


Engine deal fuels Vivo Energy

Published Date: 2019-05-09 | Source: Stephen Gunnion | Author: Stephen Gunnion

Engine deal fuels Vivo Energy

The fuel and lubricants group says March's volumes were 13% higher after it added 230 Engen garages to its network.

Vivo Energy says it's had a positive start to 2019, performing in line with expectations during what is traditionally the slowest quarter of the year.

In a trading update, the retailer and marketer of Shell and Engen-branded fuels and lubricants said volumes rose 7% in the first quarter of the year compared with the same period a year earlier. Volumes benefitted from good underlying growth in its existing 15 Shell-branded markets, as well as a one-month contribution from its recent Engen acquisition.

From 1 March, Vivo added 230 Engen-branded service stations in eight countries to its continent-wide network, taking its total count to 2,000 garages in 23 countries. In March, the one month of the combined group, volumes were 13% higher year-on-year than its standalone performance the previous year. With the full contribution from the new markets for the rest of 2019, it expects volume growth to be in line with its full-year guidance of low to mid-double-digit percentage growth.

Its gross cash unit margin of $69 per thousand litres was in line with full-year guidance, with retail unit margins stabilising during the quarter due to an improvement in market conditions in its deregulated markets. It said Commercial margins benefitted from good performances in the LPG and Marine businesses, while Lubricants margins began to recover, primarily due to the impact of pricing improvements in retail lubricants.

Its shares closed 1.4% lower at R24.10 on Tuesday.

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