Viva Energy shares buoyed by first-half sales growth
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More news: Viva Energy shares advanced after the fuel refiner and retailer posted a boost to first-half sales and growth in its commercial and industrial businesses.
Viva was the best performing stock across the ASX 200 by 2:35pm AEST, with shares rising 4.5% to $3.25.
Viva Energy posts fuel sales growth amid 'sector-wide softness'
The news: Viva Energy posted a boost to group fuel sales in the first half, as the fuel refiner and retailer said strong growth in its commercial and industrial businesses offset sector-wide softness in the retail market.
The numbers: Viva's fuel sales in the six months to June totalled 8,277 million (ML) litres, up 5.7% compared to the prior corresponding period. Q2 sales were up 3.9% quarter over quarter to 4,212 ML.
The company said unaudited first-half group EBITDA is expected to be between $445 million and $455 million, compared with $361.9 million in last year's first half.
The context: Viva said high oil prices, cost-of-living pressures and the illicit tobacco trade impacted demand, as same-store fuel and convenience store sales each declined around 5% and same-store tobacco sales fell by around 17%.
The company noted that both its Express and OTR stores were affected by the soft environment during the half. However, it said "good progress" is being made to integrate OTR, Express and Viva Energy Retail and "begin capturing synergies and efficiencies" which are expected to drive "significant earnings improvements" over the next 18 months.
Meanwhile, strong demand from aviation, resources, agriculture and defence sectors supported growth in Viva's commercial and industrial sales during the period, which climbed 8.7% to 5,876 ML, a new record half for the business.
The source: ASX announcement
