Wrap Text
2020 Full Year Results
Vivo Energy plc
(Incorporated in England and Wales)
(Registration number: 11250655)
(Share code: VVO)
LEI: 213800TR7V9QN896AU56
ISIN: GB00BDGT2M75
This short form announcement is the responsibility of the Directors and represents only a summary of the information contained in the full
announcement. Consequently, it does not contain full or complete details. Any investment decisions made by investors and/or shareholders
should be based on consideration of the full announcement as a whole and investors and/or shareholders are encouraged to review the full
announcement.
The full announcement is accessible on the Company's website at https://investors.vivoenergy.com/results-centre and on the JSE website at
https://senspdf.jse.co.za/documents/2021/jse/isse/VVOE/VivoFY20.pdf.
Copies of the full announcement may be requested by contacting Investor Relations at investors@vivoenergy.com.
Vivo Energy plc
(LSE: VVO & JSE: VVO)
3 March 2021
2020 Full Year Results
Vivo Energy plc, the leading pan-African retailer and distributor of Shell and Engen-branded fuels and lubricants, today
announces its consolidated financial results for the twelve-months ended 31 December 2020.
Christian Chammas, CEO of Vivo Energy plc, commented:
“2020 was a year like no other, but we saw a strong recovery in H2 and continued to deliver against our strategy.
Full year performance was driven by a strong rebound in the second half with H2 Adjusted EBITDA slightly ahead of
H2 2019 at $220m, leading to full year Adjusted EBITDA of $360m, down 16% on 2019. The recovery would not
have been possible without the actions we took to support our stakeholders which meant that as demand recovered,
we were ready and able to supply our customers and keep the continent moving. The strong recovery has reinforced
our confidence in the future, and the Board has recommended a final dividend of 3.8 cents, in line with our progressive
dividend policy. Our markets have not been knocked off course by the pandemic, with a young and growing population
driving economic development and future fuel demand. We are focused on capturing this growth and at the same
time believe our cash flows support a higher level of shareholder returns and so have increased the minimum pay-out
ratio from 30% to 50% of attributable net income. We have started 2021 well and are confident we can continue to
successfully navigate future challenges and deliver long-term growth and returns for all of our stakeholders.”
KEY PERFORMANCE INDICATORS1
Twelve-month Twelve-month
period ended period ended
($ in millions), if not otherwise indicated 31 Dec 2020 31 Dec 2019 Change
Volumes (million litres) 9,637 10,417 -7%
Revenues 6,918 8,302 -17%
Gross Profit 617 675 -9%
Gross Cash Unit Margin ($/’000 litres) 72 71 +1%
Gross Cash Profit 697 743 -6%
EBITDA 360 416 -13%
Adjusted EBITDA 360 431 -16%
Net Income 90 150 -40%
Attributable Net Income 80 136 -41%
Diluted EPS (US cents) 6 11 -45%
Adjusted Net Income 90 162 -44%
Adjusted Diluted EPS (US cents) 6 12 -50%
1
Refer to the non-GAAP financial measures definitions and reconciliations to the most comparable IFRS measures on pages 17 to 19.
Financial Highlights
• Sales volume fell by 7% due to the impact of COVID-19 on mobility in our markets
• Revenue was down 17%, reflecting the lower volumes sold and the lower crude oil price environment
• Gross profit fell 9% to $617 million
• Gross cash unit margin rose to $72/’000 litres due to positive pricing and mix effects in H2
• Strong rebound in the second half drove H2 Adjusted EBITDA of $220 million, slightly ahead of H2 2019,
leading to both full year Adjusted EBITDA and EBITDA of $360 million
• Net income was down 40% to $90 million, impacted by negative operating leverage due to lower volumes
• Diluted EPS of 6 cents and Basic headline EPS of 6 cents, were both 45% below 2019
• Recommended final dividend of 3.8 cents per share, in line with the full year dividend proposed for 2019
Strategic and Operational Highlights
• Strong HSSEQ performance, with Total Recordable Case Frequency of 0.10 across the Group
• Adapted sites to keep employees, service station colleagues and customers safe and secure
• Expanded Retail network to 2,330 sites, by opening a net total of 104 new retail service stations
• Delivering against strategy in Engen markets, by expanding Retail network by 14% during the year
• Protected jobs of our employees and supported our dealers and hauliers
• Supported our communities through investment into over 130 community projects
• Agreed our first project to supply hybrid solar power to a gold mining customer in West Africa
Outlook
The Group experienced a swift recovery in H2 2020, delivering strong financial performance and has growing
confidence for the future, with the positive H2 2020 trends expected to continue into 2021. We navigated the first
twelve months of the pandemic successfully, strengthening our market position in our key markets and continuing to
invest in growing our network and offerings. Assuming the level of restrictions in our operating countries do not
materially change, we anticipate that the progressive recovery in the Retail segment, driven by increasing mobility,
will support business performance, with Aviation and Marine remaining subdued. We continue to invest in growing
the business, with capital expenditure expected to be in line with 2020 levels, at around $160 million as we invest in
growing and upgrading the retail network and our offerings across all 23 countries, with 90-110 net new sites targeted
for the year.
We have leading market positions in structural growth markets across Africa, which are expected to see a rapid
recovery in economic growth in 2021 and beyond, driven by the macro fundamentals on the continent. The pandemic
slowed, but has not stopped this growth, and with a young and growing population, an emerging middle class and
increasing car penetration, fuel demand in our markets will continue to grow in the coming years, underpinning our
long term growth ambitions.
Throughout 2020 we maintained a strong balance sheet, and in Q3 completed a bond refinancing, which enhanced
our capital structure and provides improved flexibility for capital allocation. Looking forward, we are focused on
continuing to capture the growth opportunity that exists within our markets, and believe that at the same time, the
level of cash flow generated within the Group and the balance sheet flexibility means that we are able to support a
higher level of shareholder returns. We demonstrated our commitment to dividends by maintaining our progressive
policy through the pandemic and believe that now is the right time to increase the minimum pay-out ratio from 30%
to 50% of attributable net income, and intend for future dividends to grow in line with earnings.
End
Results presentation
Vivo Energy plc will host a webcast for analysts and investors today, 3 March 2021 at 09.00 GMT, which can be
accessed at: https://webcasting.brrmedia.co.uk/broadcast/60228775a9190e2d3caa5759
For those wishing to ask a question, please dial in to the event by conference call:
Dial-in: +44 (0)330 336 9125 / +27 11 844 6118
Participant access code: 3813098
The replay of the webcast will be available after the event at https://investors.vivoenergy.com
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
rob.foyle@vivoenergy.com giles.blackham@vivoenergy.com
Tulchan Communications LLP
Martin Robinson, Suniti Chauhan, Harry Cameron
+44 20 7353 4200
vivoenergy@tulchangroup.com
JSE Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
Notes to editors:
Vivo Energy operates and markets its products in countries across North, West, East and Southern Africa. The Group has a
network of over 2,300 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.
Vivo Energy plc has a primary listing on the London Stock Exchange, and is a member of the FTSE 250 index, with a secondary
inward listing on the Johannesburg Stock Exchange.
For more information about Vivo Energy, please visit www.vivoenergy.com
Forward looking-statements
This report includes forward-looking statements. These forward-looking statements involve known and unknown risks and
uncertainties, 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.
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
Date: 03-03-2021 09:00:00
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