Vivo Energy H1 earnings underpinned by retail business

(Sharecast News) - Vivo Energy reported a jump in first-half earnings on Tuesday thanks to a solid performance from the retail business.
In the six months to 30 June, adjusted earnings before interest, tax, depreciation and amortisation rose 57% on the same period a year prior to £$220m while revenue rose 18% to $4bn. Meanwhile, volumes sold were up 8% as Covid restrictions eased.

The pan-African retailer and marketer of Shell and Engen-branded fuels and lubricants, said the volume recovery was led by the retail segment, with volumes 18% higher than the first half of 2020 as restrictions were lifted. It also highlighted the impact of the accelerated site roll-out programme and a range of marketing initiatives.

Commercial volumes were 4% lower, however, but excluding the impact of the supply contract that ended in the third quarter of last year, they were ahead 4%. Vivo said lubricant volumes were "very strong", up 14% on both the first half of last year and 2019.

Chief executive officer Christian Chammas said: "Our strong performance during H1 2021 further demonstrates the strength of our business and the resilience of the African continent.

"As we move into the second half we are watchful of the potential impacts of Covid-19, but still expect Retail to lead the recovery and are demonstrating our confidence in our business by both investing in growth and delivering growing returns to shareholders."