African fuel retailer Vivo Energy Plc reported a 2% increase in 2018 gross profit, reaching $624 million compared to $614 million in 2017, driven by higher sales volumes. The company, a joint venture between Vitol Group and Helios Investment, anticipates low to mid-double-digit volume growth in 2019 despite challenges in its Moroccan market.
The firm's adjusted core earnings rose 6% to $400 million in 2018, with fuel volumes up 4% to 9.351 billion liters. This performance partially offset supply disruptions and reduced retail margins in Morocco, where consumer activism contributed to a 1% decline in gross cash unit margins to $74 per thousand liters.
Vivo Energy's acquisition of an Engen Ltd subsidiary in March 2019 expanded its network by 230 stations across eight new countries. The company plans to open 80-100 new service stations in 23 operating markets in 2019. Its CFO noted ongoing pressure on Moroccan retail margins, citing potential regulatory changes that could further impact results.
The firm recommended a final dividend of 1.3 cents per share, bringing total annual dividends to 1.9 cents per share, or 30% of attributable net income. Vivo Energy's Moroccan retail unit contributed 18% to core earnings in 2018, down from 29% in 2017, with expectations of continued decline in 2019.
