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Vivo Energy PLC on Wednesday posted strong financial results for 2021 as volumes recovered to close to pre-pandemic levels on the back of rapid expansion of its retail footprint.
London-based Vivo sells fuels and lubricants under Shell PLC and Engen brands in 23 African countries.
Pretax earnings leapt by 45% to $253 million in 2021 from $175 million in 2020.
Revenue was up 22% to $8.46 billion from $6.92 billion as the group expanded its retail network by a net total of 133 retail sites.
Vivo declared a final dividend of 4.0 US cents, bringing the total payout to 5.7 cents. In 2020, it returned 3.8 cents to shareholders.
Driven by strong operational performance, adjusted earnings before interest, taxes, depreciation and amortisation grew by 24% to $447 million from $360 million. It was 3.7% ahead of $431 million in 2019.
Volumes increased by 7.3% to 10.3 million litres from 9.6 million litres, moving within a touching distance of 2019 levels, underpinning the recovery that remains firmly on track. In 2019, volumes stood at 10.4 million litres.
‘We delivered a strong performance in 2021, demonstrating the robustness of our business model, and continued to deliver against our growth strategy. We were pleased with the recovery in volumes to close to pre-pandemic levels,’ said Chief Executive Christian Chammas, who is stepping down from the role after ten years since 2012. Stanislas Mittelman is replacing Chammas.
‘This was predominantly driven by our retail segment, which is now above 2019 levels, as mobility improved and we continued to expand the network, opening a net total of 133 new sites during the year,’ Chammas said.
In November, Vivo accepted a $2.3 billion takeover offer from energy and commodity trading company Vitol Group, its largest shareholder.
This transaction is expected to be completed in third quarter. Vivo shareholders have already approved the deal, with the South African Reserve Bank giving its thumbs-up.
Shares in Vivo remained untraded at R 27.79 on Wednesday morning in Johannesburg. The stock was up 0.2% to 136 pence in London.
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