JSE-listed Vivo Energy achieved a 6% year-on-year increase in adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) to $102-million for the quarter ended March 31, compared with Ebitda of $96-million in the first quarter of 2017.
Total volumes were up 5% year-on-year, driven by expansion of the retail network across the portfolio and strong volume performances in the company’s commercial and lubricants segments.
"We have made a good start to 2018, reflected in a strong set of results across our operations. Performance was underpinned by continued growth in volume and gross cash profit, as well as our relentless focus on enhancing our customer value proposition across all segments, while driving efficiency throughout the business," CEO Christian Chammas said in a statement on Wednesday.
Retail volume growth was 7%, owing to continued network expansion across the business, while maintaining average throughput performance for the retail network in line with 2017 full-year levels.
Commercial volume growth was 2% and gross cash profit was up 7%, while lubricants volumes were up 3%, but gross cash profit was down 10%.
The company also said on Wednesday that it would offer $400-million in five- and seven-year notes to pay fees and expenses incurred related to its initial public offering, as well as to finance its acquisition of Engen’s Mauritius-based subsidiary.
“Looking ahead, we continue to expect yearly volume growth to be within unit margin,” he stated.