Headquartered in the Docklands, Australia, Viva Energy (ASX: VEA) engages in the manufacture, distribution, and sale of petroleum products. It operates through the following segments: Retail, Fuels, and Marketing; Refining; and Supply, Corporate, and Overheads. The Retail, Fuels, and Marketing segment involves the merchandise and commercial operations of fuel products. The Refining segment converts imported and locally sourced crude oil into petroleum products including gasoline, diesel, jet fuel, aviation gasoline, gas, solvents, bitumen, and other specialty products. The Supply, Corporate, and Overheads segment relates to contracting access to a national infrastructure network comprising import terminals, storage tanks, depots, and pipelines. The firm specializes in the industry of aviation, marine, mining, transport, and commercial fleet.
Why is the Viva Energy Share Price Surging On The ASX?
This morning VEA shares was the top performer on the ASX as VEA shares surged over 5%, while the ASX was subject to a sell-off that looked to have originated in the US markets last night. In a week where the ASX 200 dropped 0.5%, VEA shares ended the week in the green with a 5.88% return.
Viva Energy announced an operational update and an unaudited financials results for its 1st half of FY21 this morning. It was a fairly strong performance underpinned by strong sales growth in non-aviation businesses, supportive margins, and an improved refining performance since returning to full production in late 2020. While retail fuel sales continue to be impacted by periodic lockdowns, and aviation by ongoing border closures, overall growth across all retail and commercial channels has been very encouraging with total Petrol and Diesel sales volumes up 4% and 16% respectively on 1H2019, as a comparison to pre-COVID demand.
CEO and Managing Director, Scott Wyatt said “Refining remains challenging, but supported by strong production levels,receipt of the short-term production payment grant, and the long-term fuel security package commencing 1 July 2021 that minimises the downside volatility of refining margins.Our recovery program remains on track, and I am very pleased with the performance of the business.”
Given the positive performance amid testing operating conditions, VEA shares surged 5.08% and closed at $2.07 a share.
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