Pan-African fuel and lubricant retailer and distributor Vivo Energy has reported a first-quarter gross profit of $179-million, up 6% from the first quarter of 2019, with a strong available liquidity position of $1.6-billion.

The company experienced strong trading in January and February, experiencing over 20% gross cash profit growth, with the March performance affected by Covid-19-related measures reducing demand, with full lockdowns imposed in countries including Morocco, Tunisia, Mauritius and Reunion in the last two weeks of the month.

The company distributes and retails Shell- and Engen-branded fuels and lubricants.

Vivo Energy’s board of directors has, in an effort to be prudent, withdrawn a recommendation of the payment of the 2019 final dividend, but will consider an additional dividend payment once there is more certainty in the markets in which it operates.

In addition, sales volumes rose by 7%, with the Vivo Energy group benefiting from two months of additional Engen contribution and improved Shell-branded retail performance, before the government restrictions were imposed.

Gross cash unit margins remained resilient at $69 per 1 000 ℓ. This was in line with the

previous year period.

In April, the company experienced reduced volumes as more governments have enacted restrictions to contain the spread of Covid-19. There are currently countrywide lockdowns in nine countries serviced by Vivo Energy, with either curfews or partial lockdowns in a further ten. The remaining four countries currently have a broad range of social distancing measures in place including the closure of schools and borders and bans on group gatherings.

As a result, Vivo Energy reports that sales volumes have been running at about half of expected levels in April to date, but will fluctuate dependent on the restrictions in place at any given time.

Vivo Energy CEO Christian Chammas says the company’s gross cash profit reflects a strong start to the year before Covid-19-related restrictions on movement imposed in March created significant and ongoing reductions in demand.

He points out that the company has responded rapidly to the challenges raised by Covid-19 to protect Vivo Energy’s staff and customers, its communities and its business. “With our robust balance sheet and access to liquidity we have a strong base to navigate through these uncertain times.”

In light of the current situation, we have implemented a number of key initiatives to protect Vivo Energy staff and customers, company communities and its business. In terms of staff and customers, Vivo Energy has implemented of a range of preventive and protective health and safety measures, including travel restrictions, remote working and / or rotations to reduce the numbers of staff in company offices or facilities at one time.