Viva Energy surges despite 27.8% decrease in FY profit
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More news: Shares in Viva Energy advanced in afternoon trade despite the company reporting a 27.8% decrease in its first-half profit year-on-year, driven by weaker performance across its convenience & mobility and energy & infrastructure segments.
Shares rose 8.38% to $1.87 at 2:51pm AEDT.
UBS analyst Tom Allen holds a buy rating on the stock, saying he expects the company to trade favourably on a stronger outcome in the convenience & mobility division in FY26.
Viva Energy posts 27.8% decrease in FY profit on soft convenience and energy infrastructure
The news: Fuel distributer Viva Energy reported full-year net profit after tax of $183.6 million, representing a 27.8% decrease from a year prior, driven by weak performance across the convenience and mobility (C&M) and energy and infrastructure (E&I) divisions.
The numbers: Analysts had forecast $160.3 million, according to Visible Alpha data.
The group’s full-year earnings before interest and tax was 6.4% lower to $700.9 million.
The company declared a full-year fully franked dividend of 3.94 cents per share, below consensus estimates of 6 cents.
The context: CEO Scott Wyatt said the lower full-year profit was driven by weak performance across the C&M and E&I sectors, as well as a site-wide power outage at the Geelong Refinery. The outage reduced output during a period of scheduled maintenance and the commissioning of the ultra low sulphur gasoline plant.
Viva Energy said it expects underlying global demand to remain solid, however geopolitical uncertainty is expected to continue to drive volatility in the energy markets in FY26.
The source: ASX
