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Vivo Energy FY profits drop as revenues slide on Covid-19 impacts

Wed 03 March 2021 08:04 | A A A

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(Sharecast News) - Fuels and lubricants retailer Vivo Energy said on Wednesday that gross profits had declined in 2020 as revenues slipped due to Covid-19 impacts throughout the year.

Vivo said revenues were down 17% year-on-year at $6.91m, reflecting a 7% decline in sales volume as Covid-19 affected mobility across the group's markets.

Gross profits fell 9% to $617.0m, adjusted underlying earnings slumped 16% to $360.0m and net income dropped 40% to $90.0m.

Going the other way, gross cash unit margins rose to $72 per 1,000 litres thanks to positive pricing and mix effects in the second half of 2020.

Vivo also highlighted that a "strong rebound" in the second half drove adjusted EBITDA for the period to $220.0m, slightly ahead of the prior year.

The FTSE 250-listed firm recommended a final dividend of 3.8 US cents per share, in line with the full-year dividend proposed for 2019.

Chief executive Christian Chammas said: "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."

As of 0900 GMT, Vivo shares were up 0.11% at 89.60p.

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