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Highlights
- Viva Energy is a convenience retailer, commercial services and energy infrastructure company
- In 1HFY24, VEA’s NPAT (RC) jumped to AUD 192.10 million, up 10.34% YoY
- Energy Australia BV has the maximum stake in the firm with a shareholding of nearly 28.95%
Viva Energy Group Limited (ASX:VEA) is an ASX-listed commercial services, energy infrastructure and commercial retailer firm. The company recently completed the acquisition of OTR Group with the aim to grow Convenience & Mobility (C&M) EBITDA to over AUD 500 million by 2028 and extend its commercial presence in regional areas. The business integration following the acquisition of OTR is on track to deliver more than AUD 60 million in annual synergies within three years. Moreover, a growth pipeline is expected to deliver 85 new stores in the coming three years.
In the first half of the financial year 2024 (1HFY24), the company recorded a 10.34% YoY rise in its NPAT (RC) to AUD 192.10 million, 24.81% YoY jump in EBITDA (RC) to AUD 451.70 million and 5.74% YoY increase in sales volume to 8,277 million litres.
The period saw nearly 5.7% YoY rise in group fuel sales on a pro forma basis to 8.3 billion litres.
Top 10 shareholders of VEA
The top 10 shareholders of VEA have around 51.62% shareholding in the firm, while the top four have 43.31% of the shareholding. Energy Australia BV and Pendal Group Limited have highest stake in the company with a shareholding of ~28.95% and ~5.27%, respectively.
Recent business update
On 26 August 2024, the company declared a 100% franked interim dividend of 6.7 cents per share, totalling AUD 106.9 million. The announced dividend corresponds to a 70% payout ratio of C&M and C&I NPAT, which constitutes 56% of the company’s total NPAT. Worth mentioning here is that the dividend declared is at the upper end of the dividend policy range.
On a business level, total NPAT (RC) for C&M and C&I stood at AUD 152.4 million and NPAT (RC) for E&I was AUD 39.7 million.
Outlook
The company’s focus is on extending the OTR convenience offerings across the Express network which will begin in scale from 2025, After completing the integration of OTR, the company intends to improve cost and earnings as a priority over the next 18 months.
In FY24, the capital spend is expected to touch around AUD 500 million, including net of government contributions and transaction costs. Furthermore, the company targets long-term gearing of 1.0 – 1.5 times, based on underlying EBITDA/ Term Debt (RC).
VEA aims to open 85 new stores over the next three years as part of its growth plans.
Share performance of VEA
VEA shares closed at AUD 2.87 apiece on 4 September 2024, down 2.05%. In the past one year, VEA’s share price has dropped by almost 6.82% and in the last three months, it has recorded a decline of 15.09%.
52-week high of VEA is AUD 3.865, recorded on 5 April 2024, while 52-week low is AUD 2.73, recorded on 23 October 2023.
VEA Daily Technical Chart, Source: EODHD/Others
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 04 September 2024. The reference data in this report has been partly sourced from EODHD/Others.
Disclaimer
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