The ASX 200 index is out of form on Tuesday and heading lower.
At the time of writing, the benchmark index is down 0.3% to 8,672.1 points.
While that is disappointing, spare a thought for shareholders of one ASX 200 stock which is down 11% this morning.
Which ASX 200 stock?
The stock that is being hammered today is fuel and convenience retailer Viva Energy Group Ltd (ASX: VEA).
Its shares are currently down 11% to $1.94 after investors responded negatively to the release of a disappointing trading update.
According to the release, for the six months ended 30 June, the ASX 200 stock revealed that it expects its replacement cost (RC) EBITDA across Convenience & Mobility (C&M) and Commercial & Industrial (C&I) to be approximately $310 million.
This is above the midpoint of its previously announced guidance range.
However, group EBITDA (RC) is expected to be approximately $300 million for the first half, with a positive contribution from Energy & Infrastructure (E&I) offset by corporate costs.
As a comparison, group EBITDA (RC) in the prior corresponding period was $452 million. This means that operating earnings will be down approximately 33% year on year.
What happened?
Management notes that Total C&M fuel sales declined 0.5% compared with the same period last year, though retail fuel margins strengthened in the second quarter.
Convenience sales were down 10% compared with the same period last year, driven by a decline in tobacco sales. They fell 27% due to the impact of new tobacco packaging laws taking effect and the continued growth in illicit tobacco trade.
Lower sales were partly offset by higher gross margin, lifting to 39.2% in the second quarter due to changes in product mix, product ranging, and supplier initiatives. Convenience sales (ex-tobacco) were down 2% compared the prior corresponding period.
Elsewhere, the Geelong Refinery realised a first half Geelong Refining Margin (GRM) of US$8.2/BBL on intake of 18.8MBBLs. Management notes that while the margin environment improved throughout the half and into July, earnings were impacted by an unplanned outage in January, minor turnaround activity, and higher energy costs.
Following today's decline, this ASX 200 stock is now down by a disappointing 40% over the past 12 months.
As comparison, the ASX 200 index is up approximately 9% over the same period. This means a relative outperformance of almost 50%.
