Key points
- The Viva Energy share price gained nearly 10% over the last month
- Investors have reacted positively to operating earnings almost doubling
- The company was the fifth best energy share to hold in 2021
The Viva Energy Group Ltd (ASX: VEA) share price is on a roll this past month.
Shares in the company increased 9.77% in the last month, from $2.15 to $2.36. However, the company's shares closed down 1.26% today.
Let's take a look at what might driving the energy company's performance lately.
What's happening at Viva Energy
The Viva Energy share price has been on a steady rise throughout the month with only a couple of minor bumps on its path.
Investors appear to have driven the company's momentum after it provided a well-received financial update in late December.
The company predicted its operating earnings to increase by up to 96% to between $470 and $490 million in FY2021. This was almost double the figure in FY2020.
Viva's Coles Express business segment averaged 55 million litres a week in fuel sales. These sales have been boosted since lockdown restrictions ended.
Price increases in crude oil have also likely had a positive impact. The crude oil price has jumped nearly 15% from US$75.21 to US$86.41 per barrel this year.
Viva Energy was also ranked the fifth-best energy share to hold in 2021, as reported by my Foolish colleague Bernd in early January. The company's share price gained 15.8% in 2021.
The Australian Financial Review reported yesterday that Viva has benefited from improved profit margins. The company owns the Geelong Oil Refinery in Victoria. Its rival Ampol Ltd (ASX: ALD) has also seen profit margins increase at its Lytton refinery in Brisbane.
Earlier in December, Viva Energy entered into a memorandum of understanding with natural gas producer Woodside. The Woodside Petroleum Limited (ASX: WPL) share price has also surged 16% in the past month.
Viva Energy share price snap shot
The Viva Energy share price is up 2.16% in a week and 0.43% year to date. In the past year, the company's shares have jumped a healthy 25.33%.
In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned 8.75% in the past year.
Viva Energy has a market capitalisation of nearly $3.7 billion based on its current share price.
