VIVA Energy (ASX: VEA) continues its slide
Stock
Viva Energy (ASX: VEA) $1.76 as at 19/11/2018
Event
The biggest IPO of 2018 so far (although no contenders have presented themselves with just 6 weeks left) has fallen today after announcing they expect to miss prospectus estimates for the full year.
Viva Energy (ASX: VEA), which operates over 1,000 Shell petrol stations along with an oil refinery in Geelong, flagged a ~13.5% miss to prospectus profit at for the December year end result.
The impact to expectations has come from a number of fronts, with the realized refinery margins being the main driver of the downgrade, as well as weaker than forecasted retail sales.
The company noted that margins in general had come under pressure late this year, and a black out in August meant a they lost a week’s production. Expected margins for the year are now $US8/bbl, vs the prospectus looking for $US9.2/bbl.
Also contributing to the downgrades was the higher oil price which saw petrol prices soar, and motorist doing their best to reduce petrol consumption volumes, although as oil prices have fallen Viva did note petrol volumes return.
All in all, EBITDA is now expected at $543m & NPAT at $280m vs prospectus estimates at $605.1m & $324.1m respectively – these numbers are all on a replacement cost basis.
VIVA Energy (ASX: VEA) Chart
Market Matters Take/Outlook
