Vivo Energy taking precautions

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Vivo Energy taking precautions

Published Date: 2020-03-26 | Source: Stephen Gunnion | Author: Stephen Gunnion

Vivo Energy taking precautions

The group says its petrol stations remain open and it is supplying commercial customers but there has been a drop in aviation and transport volumes.

Vivo Energy says the Covid-19 virus hasn't affected its operations much yet due to the small number of confirmed cases in the countries where it has petrol stations.

The retailer and marketer of Shell and Engen-branded fuels and lubricants says a number of host governments, including in Morocco, Kenya and Tunisia, have taken action in recent days to prevent the spread of the virus within their countries. Measures include closing borders and schools and, in certain cases, restricting the movement of people. As fuel is a critical resource, it says its retail sites remain open and it continues to supply commercial customers. There has been a reduction in aviation and transport volumes due to the restrictions, however.

A year ago, 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.

The company said it had implemented a range of measures to protect its staff, including travel restrictions, remote working and/or creating rotations to reduce the numbers of people in our offices or facilities at one time.

Although Vivo entered the period of uncertainty in a strong financial position, with low debt and undrawn credit resources, it said it was cutting marketing spend and discretionary uncommitted capital expenditure. It was also closely monitoring its stock levels and credit exposure due to the changing demand. It's withdrawn its recent guidance for the year ahead but will go ahead with the payment of its 2019 final dividend of 2.7 US cents at a total cost of $34 million pending a review by its board of directors at its annual general meeting on 20 May.

Its shares didn't trade yesterday, closing unchanged at R15.19.





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