Viva Energy shares tumble on 47% profit decline
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The news: Viva Energy shares dipped in early trading on the ASX after the fuel refiner and retailer reported a slide in full-year earnings.
The numbers: Viva shares were down 5% to $3.46 at 11:20am AEDT.
Earlier, the company had reported full-year NPAT of $318.2 million, down 46.7% compared to the prior corresponding period, while EBIDTA fell 33.7% to $712.8 million.
However, sales volumes lifted 8.9% year-on-year. Viva's full-year dividend of 15.6 cents per share was at the top end of its target payout range, and capital expenditure guidance for 2024 was maintained at $440 million to $475 million.
The context: The Melbourne-based company, which supplies about a quarter of Australia's liquid fossil fuels, said that outages and lower refining margins at its Geelong refinery dragged earnings from its energy and infrastructure division down 87.4% from a year earlier.
However, earnings from stronger fuel sales to commercial and industrial customers, which rose more than 33% compared to FY22, helped offset those impacts.
Last month, Viva said it had seen higher fuel sales in the December quarter, but warned shareholders of lower full-year earnings after the prolonged maintenance work at its Geelong refinery. The year ended with news that the ACCC would not oppose Viva's proposed acquisition of OTR Group, after accepting a court-enforceable undertaking that commits Viva to divest 25 Coles Express sites in South Australia.
The source: ASX announcement
