Vivo Energy plc
(Incorporated in England and Wales)
(Registration number: 11250655)
(Share code: VVO)
30 October 2020
Vivo Energy plc
(LSE: VVO & JSE: VVO)
Third Quarter 2020 Trading Update
Vivo Energy plc, the leading pan-African retailer and distributor of Shell and Engen-branded fuels and
lubricants, provides the following trading update for the quarter ended 30 September 2020 (?Q3?).
? Q3 Gross cash profit of $187 million was in line with the prior year (Q3 19: $189 million)
? Higher Q3 unit margins of $75 per thousand litres (Q3 19: $71) offset 7% lower Q3 volumes
? Continuing recovery from the impact of COVID-19, with mobility restrictions easing in the
majority of markets
? Completed inaugural $350 million bond offering to refinance existing amortising long-term debt
? Payment of previously withdrawn 2019 final dividend of 2.7 cents per share, with dividends in
respect of 2020 performance to be determined at full year results
KEY PERFORMANCE INDICATORS
Three-month period ended 30 September
($ in millions), if not otherwise indicated Total Total Change
Volumes (million litres) 2,492 2,672 -7%
Gross Cash Unit Margin ($/?000 litres) 75 71 +6%
Gross Cash Profit 187 189 -1%
Nine-month period ended 30 September
($ in millions), if not otherwise indicated Total Total Change
Volumes (million litres) 7,110 7,657 -7%
Gross Cash Unit Margin ($/?000 litres) 69 70 -1%
Gross Cash Profit 487 540 -10%
Commenting on the trading update, Christian Chammas, CEO said, ?Our priority continues
to be protecting the health of our people, customers and communities across our operations, whilst
supporting our business as it continues its recovery trajectory from Q2 levels. Mobility restrictions
eased across our host countries during Q3, which has led to a strong improvement in gross cash
profit, demonstrating our resilience and the integral nature of our products to economies across
Africa. We are encouraged by the recent performance, which coupled with the strength of our balance
sheet has enabled the Board to restart dividend payments. We remain cautiously optimistic and believe
that with our diversified and resilient business model, and attractive long term growth opportunities
across Africa, we are well positioned for the future.?
Q3 volumes of 2,492 million litres significantly improved from Q2 20 due to the easing of COVID-19
related mobility restrictions in our markets, although remained 7% lower year-on-year. Volumes in
the Retail segment improved during the quarter with a number of countries returning to year-on-year
growth, but due to continuing localised restrictions in some key markets, volumes remained slightly
below the previous year. Commercial segment volumes were lower, primarily impacted by weaker
Aviation and Marine volumes due to restrictions on international travel as well as the end of a material
supply contract in one market. Lubricant segment volumes remained robust.
Gross cash unit margins during the quarter were higher at $75 per thousand litres (Q3 19: $71). Unit
margins benefitted by $1 per thousand litres due to the accounting treatment of hyperinflation in
Zimbabwe, as well as from the mix effect, positive forex impact and the current pricing and supply
environment in a number of markets.
In September, the Group successfully completed its debut bond offering, raising $350 million to
refinance its existing amortising loan facility. The bond, which has a 7-year tenor and a coupon of
5.125%, significantly lengthens the Group?s debt maturities at attractive terms, provides additional
balance sheet flexibility and enhances the Group?s presence in the capital markets.
Moroccan Competition Review
There have been no new developments regarding the independent commission?s review of the Conseil
de la Concurrence in Morocco since the Group provided an update on 29 July 2020.
In response to the impact of COVID-19, the Board withdrew its recommendation to pay the 2019
final dividend of 2.7 cents per share. Due to the rapid actions we took to protect our business and
the resilience of our business model, our balance sheet has remained strong through these exceptional
times. As a result, the Board has declared a dividend payment of 2.7 cents per share in settlement of
the 2019 final dividend. This will be paid as an interim dividend on 18 December 2020 to shareholders
on the register at the close of business on 20 November 2020.
The Board will determine the appropriate dividend payment in respect of performance during 2020 at
the time of our full year results announcement in March 2021.
The Group?s priority continues to be the safety of our people, our customers and our communities,
whilst continuing to drive our business forward in an evolving and uncertain business environment.
We are encouraged by the resilient performance during the quarter and are cautiously optimistic for
the remainder of the year and into 2021, absent any major changes to current mobility restrictions.
Vivo Energy plc will host a webcast and conference call for analysts and investors this morning at
09:00 UK time, with the following details:
Webcast link: https://webcasting.brrmedia.co.uk/broadcast/5f7b1350c4d0076f2b93b3a5
Dial-in: +44 330 336 9411 / +27 11 844 6118
A replay will be available after the event at https://investors.vivoenergy.com
Notes to editors:
Media contacts: Investor contact:
Vivo Energy plc Vivo Energy plc
Rob Foyle, Head of Communications Giles Blackham, Head of Investor Relations
+44 7715 036 407 +44 20 3034 3735 / +44 7714 134 681
Tulchan Communications LLP
Martin Robinson, Suniti Chauhan
+44 20 7353 4200
About Vivo Energy:
Vivo Energy operates and markets its products in countries across North, West, East and Southern Africa. The Group has
a network of over 2,200 service stations in 23 countries operating under the Shell and Engen brands and exports lubricants
to a number of other African countries. Its retail offering includes fuels, lubricants, card services, shops, restaurants and other
non-fuel services. It provides fuels, lubricants and liquefied petroleum gas (LPG) to business customers across a range of
sectors including marine, mining, construction, power, transport, wholesalers and manufacturing. The Company employs
around 2,700 people and has access to over 1,000,000 cubic metres of fuel storage capacity and has a joint venture, Shell and
Vivo Lubricants B.V., that sources, blends, packages and supplies Shell-branded lubricants.
For more information about Vivo Energy, please visit www.vivoenergy.com
Such forward-looking statements contained in this report speak only as of the date of this report. The Company and the Directors
expressly disclaim any obligation or undertaking to update these forward-looking statements contained in the document to reflect any
change in their expectations or any change in events, conditions, or circumstances on which such statements are based unless required
to do so by applicable law.
This announcement includes forward-looking statements. These forward-looking statements involve known and unknown risks and
uncertainties, including risks associated with the impact of COVID-19, many of which are beyond the Company's control and all of
which are based on the Directors' current beliefs and expectations about future events. Forward-looking statements are sometimes
identified by the use of forward-looking terminology such as: "believe", "expects", "may", "will", "could", "should", "shall", "risk", "intends",
"estimates", "aims", "plans", "predicts", "continues", "assumes", "positioned", "anticipates" or "targets" or the negative thereof, other
variations thereon or comparable terminology. These forward-looking statements include all matters that are not historical facts. They
appear in a number of places throughout this report and include statements regarding the intentions, beliefs or current expectations of
the Directors or the Group concerning, among other things, the future results of operations, financial condition, prospects, growth,
strategies of the Group and the industry in which it operates.
No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of risks
and uncertainties facing the Group. Such risks and uncertainties could cause actual results to vary materially from the future results
indicated, expressed, or implied in such forward-looking statements.
JSE Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
Date: 30-10-2020 09:00:00
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