ASX 200 energy stock Viva Energy Group Ltd (ASX: VEA) finished higher on Monday after the company posted its result for the half year ended June 30, 2024.
Viva shares finished trading less than 1% higher at $3.07 apiece as investors reacted positively to the company's numbers.
Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) finished less than 1% higher on Monday as well.
Let's see what the company posted.
ASX 200 energy stock finishes higher on H1 FY24 growth
The key achievements from Viva's first half include:
- Group earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 25% to $452 million
- Group fuel sales were up 6% on a pro forma basis, reaching 8.3 billion litres
- Declared a fully franked dividend of 6.7 cents per share
- Net profit rose by 10% to $192.1 million
What else happened in FY24?
The ASX 200 energy stock grew fuel sales and pre-tax earnings during FY24. Group fuel sales were 6% higher, underscored by an 11% growth in fuel sales for its commercial and industrial (C&I) segment.
In total, C&I revenues were 9% higher on a pro forma basis, with demand from "the Aviation, Resources, Agriculture and Defence sectors in particular".
The company also completed the acquisition of the OTR Group, which is expected to more than double the convenience and mobility (C&M) segment's EBITDA to over $500 million by 2028.
Sales for the C&M segment were 5% lower in H1, as convenience store sales and tobacco sales were down 5% and 17% on a same-store basis, respectively.
Meanwhile, the Geelong Refinery operated near full capacity, contributing to the energy Infrastructure (E&I) segment's 391% EBITDA increase.
With growth during the quarter, the board declared a 6.7 cents per share interim dividend. This could impact the ASX 200 energy stock.
What did management say?
Viva Energy CEO and Managing Director Scott Wyatt commented on the results:
Viva Energy delivered a strong first half performance with both fuel sales and EBITDA growing by 6% and 25% respectively, and further progress on our strategic agenda with the acquisition of the OTR business.
Cost of living pressures and illegal tobacco trade are having an impact on consumer demand within our convenience businesses, at the same time that wage and cost inflation are driving up the cost of doing business across all our business units.
In this context, our financial results for the first half demonstrate significant resilience and the benefits that come from diversity within our businesses. Continued strength in our commercial business and strong production performance at our Geelong refinery were key drivers of earnings growth".
What's next?
Looking ahead, Viva Energy remains focused on its long-term growth strategy, particularly expanding its Convenience & Mobility offerings and enhancing operational efficiencies.
The company plans to convert 30 stores to the OTR Group format over the next 12 months, with further conversions to follow.
It also looks to reign in capital expenditures in the coming year:
Capital spend in FY2024 is expected to be approximately $500 million (including transaction costs and net of government contributions). This is approximately 10% lower than previous guidance reflecting updated phasing of spend across 2024 and 2025.
ASX 200 energy stock snapshot
Viva Energy shares finished the day higher after posting double-digit profit growth in its H1 2024 numbers.
Over the last 12 months, the ASX 200 energy stock is flat after incurring a 12% loss this year to date.
