(Alliance News) - Vivo Energy PLC on Friday said it expects full-year earnings to be above the top end of current market expectations, driven by continued positive momentum in its fourth quarter.
The downstream petroleum products distributor said trading in its fourth quarter was driven by an ongoing recovery in the Retail segment, as mobility restrictions across its host countries remained limited, leading to full-year fuel volumes of 9.6 billion litres, down 7% year-on-year.
Vivo said its performance was also supported by unit margin tailwinds experienced in the third quarter continuing through the final quarter.
As a result, it expects 2020 adjusted earnings before interest, tax, depreciation, and amortization to be above the top end of the range of current market expectations of USD331 million to USD354 million. Adjusted Ebitda for 2019 was GBP431 million.
The company stated that as a result of the positive performance, it intends to pay a dividend of 3.8 pence per share, unchanged from 2019.
"The Covid-19 pandemic had a significant adverse impact on our business in the first half of 2020. Since then the group has recovered strongly, with the second half in line with the comparable period in 2019, and this positive performance has continued into 2021. As a result, we are cautiously optimistic, and believe that we are well positioned for the future due to our leading positions in structural growth markets, together with our diversified and resilient business model," said Chief Executive Christian Chammas.
Full results for 2020 will be published on March 3.
Shares in Vivo Energy were trading 3.7% higher at 81.10 pence each early Friday morning in London. In Johannesburg, the stock was 4.1% higher at ZAR16.30.
By Ife Taiwo; ifetaiwo@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.