for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Markets News

UPDATE 1-Vivo Energy resumes dividend pay on improved trading

(Adds outlook, Q3 gross profit)

Oct 30 (Reuters) - Africa-focussed fuel retailer Vivo Energy said on Friday volume improved in the third quarter from the second as COVID-19 restrictions eased and it would pay a previously withdrawn 2019 final dividend.

UK-listed Vivo said it was cautiously optimistic for the rest of the year and into 2021, as no major changes have been made to current virus restrictions.

“Mobility restrictions eased across our host countries during Q3, which has led to a strong improvement in gross cash profit,” Chief Executive Officer Christian Chammas said.

The company, which distributes Shell and Engen-branded fuels and lubricants, said third-quarter volume improved “significantly” from the second quarter to 2,492 million litres.

Volume was, however, down 7% year-on-year, due to the ongoing localised restrictions in some key markets of the company.

Vivo, which operates in 23 countries across Africa, said its gross cash profit for the quarter fell 1% to $187 million.

The company, which has a secondary listing on the Johannesburg Stock Exchange, had withdrawn its 2019 dividend in April amid pandemic-related disruptions.

Reporting by Shanima A in Bengaluru; Editing by Krishna Chandra Eluri

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up