The Viva Energy Group Ltd (ASX: VEA) share price is up by 5.59% to $1.70 at the time of writing, following a business update by the company.
What was in the announcement?
Viva Energy announced that total petrol and diesel sales in Victoria for the month of July 2020 were in line with sales in July 2019. This outcome was achieved despite coronavirus lockdowns in Victoria, with the company citing strong agricultural demand as a driver of sales. Victorian petrol sales alone were down 25% compared to the same period last year.
The company reported that petrol sales across Australia without the inclusion of Victoria were down 11% in July compared to the same period last year.
The announcement referred to stage 4 coronavirus lock downs in Victoria, stating: "The company is closely monitoring the situation and assessing any further potential impacts on Victorian fuel sales and refining production as a result of these additional measures."
About the Viva Energy share price
Viva Energy is the operator of the Geelong Refinery in Victoria. It supplies more than 1,260 service stations in Australia with liquid fuels and lubricants. The company also supplies aviation fuels, marine fuels, bulk fuels and chemicals.
Viva Energy recently bought back 1.93 billion ordinary shares for $4.84 billion.
For the first half of 2020, Viva Energy released unaudited underlying net profit after tax guidance of $20 million to $50 million. This compared to underlying net profit after tax of $50.9 million in the first half of 2019.
The company sold 833 mega litres of fuel in April and 922 mega litres in May, down from 1,219 mega litres in March.
In the 2019 financial year, Viva Energy had earnings before interest tax depreciation and amortisation of $644.5 million. That financial year saw a record operational performance by the company's refinery asset.
The Viva Energy share price is up 51.79% from its 52-week low of $1.12, however, it is down 11.46% since the beginning of the year. The Viva Energy share price is down 28% since this time last year.
