VIVO ENERGY PLC - Vivo Energy plc Interim 2018 Results

Release Date: 02/08/2018 08:00
Code(s): VVO
 
Wrap Text
Vivo Energy plc Interim 2018 Results

Vivo Energy plc
(Incorporated in England and Wales)
(Registration number: 11250655)
(Share code: VVO)
LEI: 213800TR7V9QN896AU56
ISIN: GB00BDGT2M75

Vivo Energy plc Interim 2018 Results

Good momentum and efficient execution in H1 2018

London, United Kingdom, 02 August 2018: Vivo Energy plc today announces its interim condensed
consolidated financial results for the half-year ended 30 June 2018.

Financial Highlights

- Volumes up 4% year-on-year, driven by growth in all business segments
- Gross Cash Profit up 7% year-on-year to $344m
- Non-fuel retail Gross Cash Profit up 22% year-on-year
- Adjusted EBITDA up 8% year-on-year to $204m
- Net Income decreased slightly by 1% year-on-year to $71m
- Adjusted Net Income up 11% year-on-year to $95m
- Adjusted diluted EPS of $0.07 and diluted headline EPS of $0.05 for the first half-year 2018
- Strong balance sheet with net debt/adjusted EBITDA ratio of 1.01x at 30 June 2018
- New $300m multi-currency revolving credit facility remained fully undrawn at the end of the period.
  Facility can be increased by an additional $100m contingent upon events after the listing
- Approved interim dividend of circa $0.01 per share, amounting to approximately $8m.
  For further information refer to the dividend declaration announcement

KEY PERFORMANCE INDICATORS

                                                                                             Six-month      Six-month
                                                                                          period ended   period ended
US $ millions, unless otherwise indicated                                                 30 June 2018   30 June 2017   Change
Volumes (million litres)                                                                         4,628          4,462      +4%
Gross Profit                                                                                       312            295      +6%
Gross Cash Profit                                                                                  344            323      +7%
Adjusted EBITDA                                                                                    204            189      +8%
Net Income                                                                                          71             72      -1%
Adjusted Net Income                                                                                 95             86     +11%

Strategic and Operational Highlights

- Outstanding HSSE performance, with Total Recordable Case Frequency of zero
- IPO completed May 2018, admitted to trading on the London Stock Exchange with a secondary listing
  on the Johannesburg Stock Exchange
- Progressing towards completion of the Engen International Holdings Limited transaction
- On track to open the targeted number of service stations and non-fuel retail outlets for the year
- Joint venture formed to become KFC's licensee in the Ivory Coast. First KFC restaurant in the country
  opened at a Shell service station
- Secured several additional aviation contracts with international and regional carriers

Christian Chammas, CEO of Vivo Energy plc, commented: "Following our successful IPO on the London and
Johannesburg Stock Exchanges in May, we are pleased to have delivered a strong set of results for the first half
of the year, during which we continued to meet our growth objectives.

"We have received further regulatory and anti-trust approvals in relation to the Engen International Holdings
Limited transaction. We continue to work on the final outstanding items whilst discussing the timing of
completion with Engen.

"Given Vivo Energy's differentiated business model, track record, exposure to Africa and the growth
opportunity it represents, the Directors remain confident in the resilience of the business and its ability to
deliver its growth objectives in the second half of the year."

FY 2018 Outlook

Overall performance for the first half of the year remained in line with the Group's objectives for the fiscal
year. We continue to expect annual volume growth to be within our target mid-single digit percentage range,
with an overall broadly stable gross cash unit margin.

Following consumer activism in Morocco across several sectors during Q2 2018, the Moroccan government
initiated dialogue with the Moroccan Petroleum Group (GPM), the industry representative body, to discuss
price regulation. Whilst discussions have taken place, at this stage no plans regarding price regulation have
been confirmed.

Vivo Energy expects to provide further updates on its medium-term objectives, reflecting the impact of the
Engen International Holdings Limited transaction, in due course.

Ends

Results Presentation

Vivo Energy plc will host a presentation for analysts and institutional investors today, 02 August 2018 at 09.00
BST, which can be accessed at: https://www.investis-live.com/vivo-energy/5b3e265305eeee1000a8511d/fhud

Conference call details:
Please dial into the call at least 15 minutes prior to the conference start time.

Participant dial-in numbers                                  Replay information
Dial in: +44 20 3936 2999                                    Dial in: + 44 20 3936 3001
Participant Access Code: 07 36 45                            Replay code: 21 71 27

The replay of the webcast will be available after the event at: https://investors.vivoenergy.com

Enquiries:

Media
Tulchan Communications LLP                                  Vivo Energy plc
Martin Robinson, Toby Bates                                 Rob Foyle
+44 20 7353 4200                                            +44 1234 904 037
vivoenergy@tulchangroup.com                                 rob.foyle@vivoenergy.com

Investors
investors@vivoenergy.com

Notes to editors:*

Vivo Energy operates and markets its products in countries across North, West, East and Southern Africa. The Group
has a network of over 1,800 service stations in 15 countries and exports lubricants to a number of other African countries.
Its retail offering includes fuels, lubricants, card services, shops and other non-fuel services (e.g. oil change and car wash).
It provides fuels, lubricants and liquefied petroleum gas (LPG) to business customers across a range of sectors including
marine, mining, construction, power, transport and manufacturing. Jet fuel is sold to customers under the Vitol Aviation brand.

The Company employs around 2,360 people and has access to approximately 943,000 cubic metres of fuel storage
capacity. The Group's joint venture, Shell and Vivo Lubricants B.V., sources, blends, packages and supplies Shell-branded
lubricants and has blending capacity per annum of around 158,000 metric tonnes at plants in six countries (Ghana, Guinea,
Ivory Coast, Kenya, Morocco and Tunisia).

This announcement is available on the Company's website at: http://investors.vivoenergy.com

This announcement does not constitute an offer to sell or issue, or the solicitation of an offer to buy or acquire securities
of Vivo Energy plc, or any of its affiliates in any jurisdiction, or an inducement to enter into investment activity.

References in this announcement to "Vivo Energy" or the "Group" mean Vivo Energy plc ("the Company") and Vivo
Energy Holding B.V. ("VEH", the holding company of the Vivo Energy Group until admission), together with its
consolidated subsidiaries and subsidiary undertakings. Refer to the Non-GAAP financial measures definitions of Adjusted
EBITDA and Adjusted Net Income and reconciliations to the most comparable IFRS measures in the interim condensed
consolidated financial statements for the six-month period ended 30 June 2018 (note 4). The Group defines Gross Cash
Profit as gross profit adjusted to exclude depreciation and amortisation expense.

* Data correct as at 30 June 2018.

Forward-looking statements

This announcement includes forward-looking statements. These forward-looking statements involve known and unknown risks and
uncertainties, many of which are beyond the Company's control and all of which are based on the Directors' current beliefs and
expectations about future events. Forward-looking statements are sometimes identified by the use of forward-looking terminology
such as: "believe", "expects", "may", "will", "could", "should", "shall", "risk", "intends", "estimates", "aims", "plans", "predicts",
"continues", "assumes", "positioned", "anticipates" or "targets" or the negative thereof, other variations thereon or comparable
terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places
throughout this report and include statements regarding the intentions, beliefs or current expectations of the Directors or the Group
concerning, among other things, the future results of operations, financial condition, prospects, growth, strategies of the Group and
the industry in which it operates.

No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of risks
and uncertainties facing the Group. Such risks and uncertainties could cause actual results to vary materially from the future results
indicated, expressed, or implied in such forward-looking statements.

Such forward-looking statements contained in this report speak only as of the date of this report. The Company and the Directors
expressly disclaim any obligation or undertaking to update these forward-looking statements contained in the document to reflect
any change in their expectations or any change in events, conditions, or circumstances on which such statements are based, unless
required to do so by applicable law.

Vivo Energy plc
5th Floor - The Peak
5 Wilton Road                                       Tel +44 1234 904026
London, SW1V 1AN, United Kingdom                    www.vivoenergy.com

UNAUDITED INTERIM REPORT
For the six-month period ended 30 June 2018

Terms and abbreviations

 Term       Description                                        Term    Description
 B2C        Business to consumer                               GAAP    Generally Accepted Accounting Principles
 DPO        Days payable outstanding                           HI      Six-month period 1 January to 30 June
 DSO        Days sales outstanding                             HSSE    Health, safety, security and environment
 EBIT       Earnings before finance expense, finance income    IFRS    International Financial Reporting Standards
            and income taxes                                   IPO     Initial public offering
 EBITDA     Earnings before finance expense, finance income,   KFC     Kentucky Fried Chicken
            income taxes, depreciation and amortisation        LIBOR   London Interbank Offered Rate
 EBT        Earnings before income taxes                       LPG     Liquefied petroleum gas
 EIHL       Engen International Holdings (Mauritius) Limited   MD&A    Management's discussion and analysis
 EPS        Earnings per share                                 PP&E    Property, plant and equipment
 ETR        Effective tax rate                                 SVL     Shell and Vivo Lubricants B.V.

To view the PDF of the Interim report for the six-month period ended 30 June 2018, please click on the
following link: http://investors.vivoenergy.com/~/media/Files/V/Vivo-Energy-IR/reports-and-
presentations/interim-results-2018-announcement.pdf.

MANAGEMENT'S DISCUSSION AND ANALYSIS

This MD&A of financial condition and results of operations is intended to convey management's
perspective of Vivo Energy plc's ("Vivo Energy" or the "Company") operational performance and financial
condition during the periods under review, as measured under IFRS and other relevant measures. This
MD&A is intended to assist readers in understanding and interpreting the Company's interim condensed
consolidated financial statements and should therefore be read in conjunction with the interim condensed
consolidated financial statements (included from page 17 onwards). The results of operations and cash
flows for the six-month period are not necessarily indicative of the results of operations and cash flows
for the full fiscal year.

The Company was incorporated as a private limited company in the United Kingdom on 12 March 2018
and re-registered as a public limited company on 9 April 2018. Vivo Energy plc was incorporated in
conjunction with the pre-IPO reorganisation of the Group. On 10 May 2018, the Company listed on the
London Stock Exchange Main Market for listed securities and the Main Board of the securities exchange
operated by the Johannesburg Stock Exchange by way of secondary inward listing. References in this
MD&A to "Vivo Energy" or the "Group" or "we" or "our" mean the Company and Vivo Energy Holding
B.V. ("VEH", the holding company of the Vivo Energy Group until admission), together with its
consolidated subsidiaries and subsidiary undertakings. Therefore, the MD&A for the six-month period
ended 30 June 2018 is presented for the Group with continuity, including the impact of the IPO
reorganisation.

All amounts in this report are expressed in thousands of US dollars, unless otherwise indicated.

Further insight into the Company, as well as financial and operations reports, can be found on the investor
relations section of the Company's website at: http://investors.vivoenergy.com/.

IFRS and Non-GAAP measures

This MD&A contains both IFRS and Non-GAAP measures. Non-GAAP measures are defined and
reconciled to the most comparable IFRS measures.

FORWARD-LOOKING STATEMENTS

This report includes forward-looking statements. These forward-looking statements involve known and
unknown risks and uncertainties, many of which are beyond the Group's control and all of which are
based on the Directors' current beliefs and expectations about future events. Forward-looking statements
are sometimes identified by the use of forward-looking terminology such as: "believe", "expects", "may",
"will", "could", "should", "shall", "risk", "intends", "estimates", "aims", "plans", "predicts", "continues",
"assumes", "positioned", "anticipates" or "targets" or the negative thereof, other variations thereon or
comparable terminology. These forward-looking statements include all matters that are not historical
facts. They appear in a number of places throughout this report and include statements regarding the
intentions, beliefs or current expectations of the Directors or the Group concerning, among other things,
the future results of operations, financial condition, prospects, growth, strategies of the Group and the
industry in which it operates.

No assurance can be given that such future results will be achieved; actual events or results may differ
materially as a result of risks and uncertainties facing the Group. Such risks and uncertainties could cause
actual results to vary materially from the future results indicated, expressed, or implied in such forward-
looking statements.

Such forward-looking statements contained in this report speak only as of the date of this report. The
Company and the Directors expressly disclaim any obligation or undertaking to update these forward-
looking statements contained in the document to reflect any change in their expectations or any change
in events, conditions, or circumstances on which such statements are based, unless required to do so by
applicable law.

OVERVIEW

Volumes         Gross          Gross Cash     Adjusted       Adjusted Net   
(litres)        Profit         Profit         EBITDA         Income         
4,628 million   $312 million   $344 million   $204 million   $95 million    

KEY PERFORMANCE INDICATORS
                                                                                                        Six-month period ended
US $'000, unless otherwise indicated                                                30 June 2018   30 June 2017         Change   
Volumes (million litres)                                                                   4,628          4,462            +4%   
Gross profit                                                                             312,062        294,935            +6%   
Gross cash unit margin ($/'000 litres)                                                        74             72            +3%   
Gross cash profit                                                                        344,435        323,108            +7%   
Adjusted EBITDA                                                                          203,550        188,707            +8%   
Net income                                                                                71,258         72,054            -1%   
Adjusted net income                                                                       95,037         85,579           +11%   
Diluted EPS (US $)(1)                                                                       0.05         29.022           N.A.   
Adjusted diluted EPS (US $)(1)                                                              0.07       34.93(2)           N.A.   

KEY HIGHLIGHTS AND EVENTS

Strategic and operational highlights

In the first six months of 2018, Vivo Energy achieved an outstanding HSSE performance, with
industry-led HSSE targets being exceeded for all key performance indicators and with a Total
Recordable Case Frequency of zero.

In May 2018, Vivo Energy successfully completed an initial public offering, and was admitted to
trading on the Main Market of the London Stock Exchange, with a secondary listing on the Main
Board of the securities exchange operated by the Johannesburg Stock Exchange.

Integration planning in relation to the acquisition of EIHL(3) is making good progress. We have
received further regulatory and anti-trust approvals. We continue to work on the final
outstanding items whilst discussing the timing of completion with Engen.

Total volumes increased by 4% year-on-year to 4,628 million litres, driven by further growth in all
business segments.

Continued Retail fuel growth was driven by existing portfolio optimisations and service station
network developments. We are on track to open the targeted number of service stations and non-
fuel retail outlets for the year.

In Non-fuel retail, a joint venture was formed (Baobab Energy Côte d'Ivoire) to become KFC's
licensee in the Ivory Coast. Following this, the first KFC restaurant opened at a Shell service station
in the Ivory Coast.

In Commercial, Vivo Energy successfully secured several additional aviation contracts with
international and regional carriers.

The Lubricants segment delivered a solid performance in terms of volume and adjusted
EBITDA growth, despite an increase in base oil prices compared to H1 2017.

(1) Refer to basis of preparation (note 1) in the interim condensed consolidated financial statements.
(2) Weighted average number of ordinary shares and diluted number of shares for the six-month period ended 30 June 2018 relate to
    Vivo Energy plc and for the six-month period ended 30 June 2017 to Vivo Energy Holding B.V.
(3) In December 2017, the Group entered into an agreement to acquire the entire share capital of EIHL, an investment company that
    holds the retail and commercial fuel operations of Engen Holdings (Pty) Limited in 10 African countries.

Financial performance

Gross cash profit was up 7% year-on-year, amounting to $344 million, primarily due to
volume growth, higher unit margins and favourable foreign currency movements.

Adjusted EBITDA increased by 8% year-on-year to $204 million, as a result of the volume growth,
strong margins and the contribution to the share of profit from our lubricants joint venture, the SVL group.

Net income of $71 million was slightly below last year (-1%) as a result of the special items, mainly
in relation to the IPO.

Adjusted net income, before the impact of special items mainly associated with IPO-related costs,
increased by 11% to $95 million year-on-year.

Adjusted diluted EPS was $0.07 per share for the first half-year of 2018.

Subsequent to the end of the period, the Board approved an interim dividend of circa $0.01 per
share, amounting to approximately $8 million.

Vivo Energy maintained a strong balance sheet with a leverage ratio(1) of 1.01x at 30 June 2018
(31 December 2017: 0.97x) and a net debt of $395 million at 30 June 2018 (31 December 2017: $366 million).

OUTLOOK

Overall performance for the first half of the year remained in line with the Group's objectives for the
fiscal year. We continue to expect annual volume growth to be within our target mid-single digit
percentage range, with an overall broadly stable gross cash unit margin.

Following consumer activism in Morocco across several sectors during Q2 2018, the Moroccan
government initiated dialogue with the Moroccan Petroleum Group (GPM), the industry representative
body, to discuss price regulation. Whilst discussions have taken place, at this stage no plans regarding
price regulation have been confirmed.

Vivo Energy expects to provide further updates on its medium-term objectives, reflecting the impact of
the EIHL transaction, in due course.

(1) The Group's leverage ratio is calculated as net debt, including lease liabilities, divided by adjusted EBITDA. At 30 June 2018, the
    leverage ratio is calculated using the last 12 months' adjusted EBITDA.

CONSOLIDATED RESULTS OF OPERATIONS

SUMMARY INCOME STATEMENT
                                                                                                        Six-month period ended
US $'000                                                                             30 June 2018   30 June 2017        Change   
Revenues                                                                                3,672,742      3,226,737          +14%   
Cost of sales                                                                         (3,360,680)    (2,931,802)          +15%   
Gross profit                                                                              312,062        294,935           +6%   
Selling and marketing cost                                                               (90,468)       (89,922)           +1%   
General and administrative cost                                                         (102,627)       (80,490)          +28%   
Share of profit of joint ventures and associates                                           12,144          6,741          +80%   
Other income (expense)                                                                      1,012            479         +111%   
EBIT                                                                                      132,123        131,743           +0%   
Finance expense - net                                                                    (18,292)       (14,753)          +24%   
EBT                                                                                       113,831        116,990           -3%   
Income taxes                                                                             (42,573)       (44,936)           -5%   
Net income                                                                                 71,258         72,054           -1%   

NON-GAAP MEASURES
                                                                                                        Six-month period ended
US $'000, unless otherwise indicated                                                30 June 2018   30 June 2017         Change   
Volumes (million litres)                                                                   4,628          4,462            +4%   
Gross cash profit                                                                        344,435        323,108            +7%   
EBITDA                                                                                   176,312        171,477            +3%   
Adjusted EBITDA                                                                          203,550        188,707            +8%   
ETR (%)                                                                                    37.4%          38.4%           N.A.   
Adjusted net income                                                                       95,037         85,579           +11%   
Adjusted diluted EPS (US $)(1)                                                              0.07       34.93(2)           N.A.   

(1) Refer to basis of preparation (note 1) in the interim condensed consolidated financial statements.
(2) Weighted average number of ordinary shares and diluted number of shares for the six-month period ended 30 June 2018 relate to
    Vivo Energy plc and for the six-month period ended 30 June 2017 to Vivo Energy Holding B.V.

ANALYSIS OF CONSOLIDATED RESULTS OF OPERATIONS

Volumes

Volumes increased by 4% to 4,628 million litres, resulting from further growth across all business
segments. Retail fuel, our largest segment, accounted for 57% of total volumes and increased
by 5% year-on-year. This strong business performance in Retail was driven by new service
station volumes and continued growth in the existing portfolio. Commercial volumes accounted for 42% of total volumes, an increase
of 2% year-on-year, due to exceptional performance in our sub-segments: Aviation,
Marine and LPG. Lubricants volumes accounted for 1% of total volumes and increased by 3% year-on-year.

Gross cash profit

Gross cash profit increased by $21 million, or 7% to $344 million for the first half-year compared to
$323 million in H1 2017. Gross cash profit was driven by an increase in volumes, higher margins
and favourable foreign currency movements, as well as efficient supply and distribution. Gross
cash unit margin increased by 3% to $74 per thousand litres.

Adjusted EBITDA

Adjusted EBITDA increased by $15 million or 8% year-on-year to $204 million, driven by higher
volumes and margins as well as cost control.

Contributing to the higher Adjusted EBITDA was the share of profit from our joint venture
investments. Share of profit in joint ventures amounted to $12 million, of which $6 million
relates to the share of profit from the SVL group, our lubricants joint venture, of which we acquired
a 50% shareholding in December 2017.

Selling and marketing costs were 1% higher, amounting to $90 million, mainly due to inflation
and foreign currency movements.

General and administrative cost, including special items, amounted to $103 million compared to $80
million in H1 2017. The increase was primarily due to higher non-recurring special items,(1) inflation
and foreign currency movements as well as higher employee benefit expenses in H1 2018.

Net finance expense

Net finance expense increased by $3 million or 24% to $18 million from $15 million in the first
half of 2017. This net finance expense variation was mainly driven by higher long-term borrowings
relative to the same period in 2017, as well as a foreign exchange loss due to currency
movements. In June 2017, the Company entered into a term loan facility. An incremental facility
was drawn down in December 2017 to fund the acquisition of the participation in the SVL
group. The term loan facility carries interest of Libor plus a margin of 2.5% per annum. The
incremental facility has interest of Libor plus a margin of 2.5% for the amortised portion and
Libor plus a margin of 3% for the bullet portion. The Group manages exposure to cash flow
interest rate risk on long-term borrowings using interest rate swaps, resulting in a fixed interest
rate of funding of approximately 4%.

Income taxes

For the six-month period ended 30 June 2018, ETR decreased to 37.4% from 38.4% compared to
the comparative period of 2017. The decrease is mainly attributable to less withholding tax 
and higher non-taxable income.

(1) For special items, refer to "Reconciliation of Non-GAAP measures".

OVERVIEW OF OPERATIONS BY SEGMENT

                                                                                                        Six-month period ended
US $'000, unless otherwise indicated                                                 30 June 2018   30 June 2017        Change   
Volumes (million litres)                                                                                                         
Retail                                                                                      2,635          2,514           +5%   
Commercial                                                                                  1,926          1,883           +2%   
Lubricants                                                                                     67             65           +3%   
Total                                                                                       4,628          4,462           +4%   
Gross profit                                                                                                                     
Retail (including Non-fuel retail)                                                        196,538        184,647           +6%   
Commercial                                                                                 80,910         73,447          +10%   
Lubricants                                                                                 34,614         36,841           -6%   
Total                                                                                     312,062        294,935           +6%   
Gross cash unit margin ($ /'000 litres)                                                                                          
Retail fuel (excluding Non-fuel retail)                                                        78             77           +2%   
Commercial                                                                                     47             44           +8%   
Lubricants                                                                                    536            583           -8%   
Total                                                                                          74             72           +3%   
Gross cash profit                                                                                                                
Retail (including Non-fuel retail)                                                        217,064        202,510           +7%   
Commercial                                                                                 91,454         82,623          +11%   
Lubricants                                                                                 35,917         37,975           -5%   
Total                                                                                     344,435        323,108           +7%   
Adjusted EBITDA                                                                                                                  
Retail                                                                                    120,771        110,937           +9%   
Commercial                                                                                 57,361         54,591           +5%   
Lubricants                                                                                 25,418         23,179          +10%   
Total                                                                                     203,550        188,707           +8%   

VOLUMES
(MILLION LITRES)
                         30 June 2018        30 June 2017
Retail                          2 635               2 514 
Commercial                      1 926               1 883 
Lubricants                         67                  65 
                                4 628               4 462 

GROSS CASH PROFIT
($ MILLIONS)
                         30 June 2018        30 June 2017
Retail                            217                 202 
Commercial                         91                  83  
Lubricants                         36                  38  
                                  344                 323  

RETAIL

                                 Gross Cash Unit
Volumes         Gross            Margin                     Gross Cash     Adjusted
(litres)        Profit           (excl. Non-fuel retail)    Profit         EBITDA
2,635 million   $197 million     $78 /'000 litres           $217 million   $121 million

KEY PERFORMANCE INDICATORS

                                                                                                        Six-month period ended 
US $'000, unless otherwise indicated                                                 30 June 2018   30 June 2017        Change   
Volumes (million litres)                                                                    2,635          2,514           +5%   
Gross profit (including Non-fuel retail)                                                  196,538        184,647           +6%   
Retail fuel gross cash unit margin ($ /'000 litres)                                            78             77           +2%   
Retail fuel gross cash profit                                                             205,638        193,136           +6%   
Non-fuel retail gross cash profit                                                          11,426          9,374          +22%   
Adjusted EBITDA                                                                           120,771        110,937           +9%   

ANALYSIS OF RESULTS

The Retail segment continued to drive the strong performance of our business and represented 59%
of the Group's adjusted EBITDA. Volumes grew by 5%, gross cash profit increased by 7% and adjusted
EBITDA was higher by 9% year-on-year.

Retail fuel

Retail fuel is at the heart of our growth story and achieved a 5% increase in volumes.

Higher volumes were fuelled by service station network development, which strongly
contributed to the overall portfolio growth. Continued maximum extraction of value from
existing service stations resulted in the optimisation of the existing portfolio, in line with
our objectives.

The strong performance of our existing portfolio was further supported by marketing and
operational excellence initiatives.

Gross cash unit margin (excluding Non-fuel retail) increased by 2% to $78 per thousand litres.
Related gross cash profit increased by 6% to $206 million, driven by higher volumes, strong margins
and favourable currency movements.

Non-fuel retail

Non-fuel retail gross cash profit increased to $11 million, or 22% year-on-year, driven by new
outlet openings and greater value extraction from existing outlets.

Quick service restaurants are key to growth in this segment and we continue to roll out our
strategy of bringing more food brands to our service stations. During the period, international
food brand, KFC, opened its first restaurant at a Shell-branded service station in the Ivory Coast, 
which was well received by our customers.

Convenience retail is an important growth focus area where we deploy category management plans
to respond effectively to consumer needs.

In Non-fuel retail, our focus is delivering the most convenient experience by turning our service
stations into hubs for consumers and commerce.

COMMERCIAL

Volumes         Gross         Gross Cash Unit    Gross Cash    Adjusted
(litres)        Profit        Margin             Profit        EBITDA
1,926 million   $81 million   $47 /'000 litres   $91 million   $57 million

KEY PERFORMANCE INDICATORS

                                                                                                        Six-month period ended 
US $'000, unless otherwise indicated                                                30 June 2018   30 June 2017         Change   
Volumes (million litres)                                                                   1,926          1,883            +2%   
Gross profit                                                                              80,910         73,447           +10%   
Gross cash unit margin ($ /'000 litres)                                                       47             44            +8%   
Gross cash profit                                                                         91,454         82,623           +11%   
Adjusted EBITDA                                                                           57,361         54,591            +5%   

ANALYSIS OF RESULTS

Aviation, Marine and LPG contributed strongly to higher volumes partly offset by slightly lower
Commercial fuel performance. Gross cash unit margin was higher at $47 per thousand litres compared
to $44 per thousand litres in H1 2017 and gross cash profit increased by 11%.

Core commercial

Core commercial comprises LPG and bulk fuel sales to customers in industries such as
transportation, mining, construction, power and consumers for packed LPG. Core commercial
accounted for 74% (H1 2017: 77%) of total Commercial volumes and 83% (H1 2017: 88%) of
total Commercial gross cash profit.

Gross cash profit was 5% higher, despite a decrease in volumes (1% year-on-year).
Commercial volumes were negatively impacted by lower fuel demand, as some key power sector
customers increasingly relied on hydro power in the rainy season, and certain government construction 
projects were delayed. LPG volumes increased year-on-year, driven by the development of the 
distributers' networks and the expansion of point of sale coverage.

Gross cash unit margin increased by 6% to $53 per thousand litres, driven by the development of
customer value propositions and strategically targeting profitable growth in high margin sectors.
Cost management, as well as efficient supply and distribution, especially in LPG, further contributed
to higher margins and increased gross cash profit.

Aviation and Marine

Aviation and Marine accounted for 26% (H1 2017: 23%) of total Commercial volumes and
17% (H1 2017: 12%) of total Commercial gross cash profit.

Aviation and Marine volumes grew by 14% year- on-year. Gross cash unit margin increased by 33%
year-on-year to $31 per thousand litres.

Aviation was positively impacted by the tourism sector. Vivo Energy successfully secured several
additional aviation contracts with international and regional carriers. Spot sales and increasing
crude oil prices resulted in higher Aviation unit margins.

Marine volumes increased due to an increase in large-scale tankers bunkering in one of our
countries. In other countries, ongoing efforts to secure opportunistic spot sales at favourable
pricing had a positive impact on both margins and volumes.

LUBRICANTS

Volumes      Gross         Gross Cash Unit    Gross Cash    Adjusted      
(litres)     Profit        Margin             Profit        EBITDA        
67 million   $35 million   $536 /'000 litres  $36 million   $25 million   

KEY PERFORMANCE INDICATORS
                                                                                                        Six-month period ended  
US $'000, unless otherwise indicated                                                30 June 2018   30 June 2017         Change   
Volumes (million litres)                                                                      67             65            +3%   
Revenue                                                                                  183,665        167,595           +10%   
Gross profit                                                                              34,614         36,841            -6%   
Gross cash unit margin ($ /'000 litres)                                                      536            583            -8%   
Gross cash profit                                                                         35,917         37,975            -5%   
Adjusted EBITDA                                                                           25,418         23,179           +10%   

ANALYSIS OF RESULTS

Adjusted EBITDA for the Lubricants segment increased by 10% to $25 million, mainly attributable to
our SVL joint venture that ensures a partnership across the value chain. Lubricants accounted for 13%
of the Group's adjusted EBITDA.

Retail lubricants

Retail lubricants comprise sales to Retail customers and B2C sales. Retail lubricants
accounted for 60% (H1 2017: 59%) of total Lubricants volumes and 62% (H1 2017: 61%) of
total Lubricants gross cash profit.

Volumes grew 4% year-on-year driven by successful marketing campaigns and tactical
initiatives such as lube bays and oil specialist offerings at service stations. In the first half of
2018, full growth potential was slightly limited due to lower than expected efficiencies of some of our distributers. 
Unit margin decreased to $547 from $598 per thousand litres, as a result of an increase in base oil prices, offset 
by favourable foreign exchange movements. In response to the increase in base oil prices, active price management in line
with the pricing strategy was initiated and marketing activities were focused on selling an
optimised sales mix of premium products that ensure higher margins.

Commercial lubricants

Commercial lubricants comprise sales to commercial customers and export sales to more
than 10 African countries. Commercial lubricants accounted for 40% (H1 2017: 41%) of total
Lubricants volumes and 38% (H1 2017: 39%) of total Lubricants gross cash profit.

Volumes grew 1% despite postponement of some construction projects. Activity in the Commercial
lubricants segment is expected to increase during the second part of the year.

Unit margins are at $518 in 2018 from $560 per thousand litres compared to the prior period,
attributable to the increase in the base oil prices, partially offset by favourable foreign exchange
movements.

CONSOLIDATED FINANCIAL POSITION

Total assets

Total assets, including foreign currency movements, increased by $132 million and can largely be explained by:

- $85 million increase in other assets, mainly driven by other government benefits receivable, principally
  as a result of the timing of payments;
- $97 million increase in inventories due to higher crude oil prices as well as the timing of purchases
  and shipments. Average monthly inventory days for the period was 22 days;
- $57 million increase in trade receivables driven by increased sales volumes and higher crude oil prices.
  Average monthly DSO 1 for the period was 16 days.

Partially offset by:

- $107 million decrease in cash and cash equivalents, mainly due to repayments of borrowings,
  investments in PP&E and intangible assets as well as current income taxes paid.

TOTAL ASSETS
($ MILLIONS)
                          30 June 2018    31 December 2017
Non-current assets               1 198               1,204
Current assets                   1 563               1,425 
                                 2 761               2,629 

Equity and liabilities

Total equity and liabilities, including foreign currency ovements, increased by $132 million and can largely
be explained by:

-  $194 million increase in trade payables, mostly due to an increase in crude oil prices and the timing of
   purchases and shipments. Average monthly DPO(1) for the period was 56 days.

Partially offset by:

-  $42 million repayment of long-term debt;
-  $23 million decrease in other liabilities, relating to payments of employees' annual and long-term
   incentives as well as the settlement of the current portion of the Management Equity Plan.

(1) DPO and DSO are based on monthly averages and on trade elements only.  

EQUITY AND LIABILITIES
($ MILLIONS)

                                     30 June 2018     31 December 2017
Current liabilities                         1 479                1,352
Non-current liabilities and equity          1 282                1,277
                                            2 761                2,629

LIQUIDITY AND CAPITAL RESOURCES

FREE CASH FLOW

                                                                                                        Six-month period ended
US $'000                                                                                     30 June 2018         30 June 2017   
Net income                                                                                         71,258               72,054   
Adjustment for non-cash items & other                                                              82,718               83,741   
Cash flow from operations before changes in net working capital and income tax                    153,976              155,795   
Net change in operating assets and liabilities and other adjustments                             (35,877)               14,154   
Cash flow from operating activities before income tax                                             118,099              169,949   
Net additions of PP&E and intangible assets                                                      (59,019)             (38,106)   
Free cash flow before income tax                                                                   59,080              131,843   
Current income tax paid                                                                          (62,438)             (72,090)   
Free cash flow after tax                                                                          (3,358)               59,753   

Free cash outflow after income tax of $3 million in the first half of 2018 was negatively impacted by special
items(1) and is explained by our significant investments in PP&E and intangible assets of $59 million compared
to $38 million in the first half-year of 2017. We have continued to significantly invest into our retail service
station network, which will positively contribute to our future growth. Further progress was made on our
IT-related projects, such as the SAP implementation, resulting in a cash outflow of approximately
$12 million. Furthermore, we paid income tax in the amount of $62 million in the first half of 2018. Cash
outflows for our investments in fixed assets and income tax paid were offset by a cash inflow from
operating activities before income tax of $118 million due to our strong business performance in H1 2018.
The "Net change in operating assets and liabilities and other adjustments" amounts to a cash outflow of
$36 million, principally as a result of an increase in other assets, which was partly compensated by a
positive net change in our working capital such as inventories, trade receivables and trade payables. The
increase in other assets mainly relates to the timing of payments of other government benefits receivable
for local subsidies. After the end of the reporting period, the Company received cash of $40 million in the
month of July 2018 for the other government benefits receivable.

NET DEBT AND AVAILABLE LIQUIDITY

US $'000                                                                                       30 June 2018   31 December 2017   
Long-term debt                                                                                      433,943            479,889   
Lease liabilities                                                                                   121,678            133,757   
Total debt excluding short-term bank borrowings                                                     555,621            613,646   
Short-term bank borrowings 2                                                                        154,927            175,302   
Less cash and cash equivalents                                                                    (315,919)          (422,494)   
Net debt                                                                                            394,629            366,454   

US $'000                                                                                       30 June 2018   31 December 2017   
Cash and cash equivalents                                                                           315,919            422,494   
Available undrawn credit facilities                                                               1,339,162            761,490   
Available short-term capital resources                                                            1,655,081          1,183,984   

Net debt at 30 June 2018 increased slightly to $395 million from $366 million at 31 December 2017. The
increase was primarily due to a decrease in cash and cash equivalents, partially offset by a decrease in long-
term debt as a result of scheduled repayments and a decrease in lease liabilities.

(1) For special items, refer to "Reconciliation of Non-GAAP measures".
(2) Short-term bank borrowings exclude the current portion of long-term debt.

The leverage ratio(1) increased to 1.01x at 30 June 2018 from 0.97x at 31 December 2017. In May 2018,
the Company established a new multi-currency revolving credit facility of $300 million.(2) This credit facility
remains fully undrawn and resulted in available short-term capital resources of $1,655 million compared
to $1,184 million at 31 December 2017.

NON-GAAP FINANCIAL MEASURES

We believe that providing certain Non-GAAP financial measures in addition to IFRS measures provides
users of our interim condensed consolidated financial statements with enhanced understanding of results
and related trends, and increases the transparency and clarity of the core results of our business.

Non-GAAP financial measures are derived from the interim condensed consolidated financial statements
but do not have standardised meanings prescribed by IFRS. The exclusion of certain items from Non-
GAAP performance measures does not imply that these items are necessarily non-recurring. From time
to time, we may exclude additional items if we believe doing so would result in a more transparent and
comparable disclosure.

This Interim report is based on reported numbers in accordance with IFRS and the following Non-GAAP
financial measures:

Term            Description                                   Term          Description
Gross cash      Gross profit before depreciation and          Gross cash    Gross cash profit per unit (1000 litres).
profit          amortisation recognised in cost of sales.     unit margin

EBIT            Earnings before finance expense, finance      EBITDA        Earnings before finance expense, finance
                income and income taxes.                                    income, income tax, depreciation and
                                                                            amortisation.

Adjusted        EBITDA adjusted for the impact of special     EBT           Earnings before income taxes.
EBITDA          items.

Adjusted net    Net income adjusted for the impact of         Adjusted      Diluted EPS adjusted for the impact of
income          special items.                                diluted EPS   special items.

Special items   Income or charges that are not                Free cash     Cash flow from operating activities less
                considered to represent the underlying        flow          net additions to PP&E and intangible
                operational performance and, based on                       assets.
                their significance in size or nature, are
                presented separately to provide further
                understanding of the financial
                performance of the Group.

Net debt        Total borrowings and lease liabilities less   Leverage      Net debt divided by adjusted EBITDA.
                cash and cash equivalents.                    ratio

(1) The Group's leverage ratio is calculated as net debt, including lease liabilities, divided by adjusted EBITDA. At 30 June 2018, the
    leverage ratio is calculated using the last 12 months' adjusted EBITDA.
(2) The multi-currency revolving credit facility consists of a primary $300 million able to be drawn upon admission and an additional
    $100 million contingent upon events after the listing.

RECONCILIATION OF NON-GAAP MEASURES

                                                                                                        Six-month period ended
US $'000                                                                                      30 June 2018        30 June 2017   
Gross profit                                                                                       312,062             294,935   
Add back: Amortisation and depreciation in cost of sales                                            32,373              28,173   
Gross cash profit                                                                                  344,435             323,108 
  
                                                                                                        Six-month period ended
US $'000                                                                                      30 June 2018        30 June 2017   
EBIT                                                                                               132,123             131,743   
Depreciation and amortisation                                                                       44,189              39,734   
EBITDA                                                                                             176,312             171,477   
Special items:                                                                                                                   
Management Equity Plan                                                                               2,332              14,318   
Restructuring                                                                                        1,013               2,912   
IPO and Engen acquisition related expenses(1)                                                       23,893                   -   
Adjusted EBITDA                                                                                    203,550             188,707   

                                                                                                        Six-month period ended
US $'000                                                                                      30 June 2018        30 June 2017   
Net income                                                                                          71,258              72,054   
Adjustments to EBIT related to special items:                                                                                    
Management Equity Plan                                                                               2,332              14,318   
Restructuring                                                                                        1,013               2,912   
IPO and Engen acquisition related expenses(1)                                                       23,893                   -   
Tax on special items                                                                               (3,459)             (3,705)   
Adjusted net income                                                                                 95,037              85,579  
 
                                                                                                        Six-month period ended
US $                                                                                          30 June 2018        30 June 2017   
Diluted EPS(2)                                                                                        0.05               29.02   
Impact of special items                                                                               0.02                5.91   
Adjusted diluted EPS2                                                                                 0.07             34.93 3   

(1) In May 2018, the Company became listed on the London Stock Exchange Main Market for listed securities and the Main Board of
    the JSE Limited by way of secondary inward listing. All IPO-related expenses are considered to be special items. Furthermore, on
    4 December 2017, the Company agreed to enter into a sale and purchase agreement with Engen Holdings (Pty) Limited ("Engen
    Holdings"), a 100% subsidiary of Engen Limited, in relation to the purchase of shares in Engen International Holdings (Mauritius)
    Limited ("Engen International Holdings Limited") for the exchange of a shareholding in Vivo Energy, with a cash element. This
    transaction is subject to regulatory approval. Related integration project expenses are treated as special items.
(2) Refer to basis of preparation (note 1) in the interim condensed consolidated financial statements.
(3) Weighted average number of ordinary shares and diluted number of shares for the six-month period ended 30 June 2018 relate
    to Vivo Energy plc and for the six-month period ended 30 June 2017 to Vivo Energy Holding B.V.

ACCOUNTING AND REPORTING DEVELOPMENTS

In 2017, the Group elected to early-adopt IFRS 9 "Financial Instruments", IFRS 15 "Revenue from
Contracts with Customers", and IFRS 16 "Leases". The early adoption of IFRS 9 and IFRS 15 had an
insignificant impact on the Group's financial position. The IFRS 16 early adoption had a material impact on
the Consolidated Statement of Financial Position, an immaterial impact on the Consolidated Statement of
Comprehensive Income and no impact on the Consolidated Statement of Cash Flow. The full
retrospective adoption of the standard led to the restatement of comparative figures. Refer to our annual
financial statements as of 31 December 2017. There are no other standards, amendments and
interpretations which are effective for the financial year beginning on 1 January 2018 that have a material
impact on the interim condensed consolidated financial statements of the Group.

CONTROL AND PROCEDURES

Our approach to internal controls includes a number of general and specific processes and policies that
have been developed based on detailed risk assessment at Group and local level. The key controls are
linked to the main business processes such as the revenue and receivables cycle, procure-to-pay cycle,
inventory, capital expenditure management as well as information technology systems. The objectives of
these controls are to ensure structured investment decision making, quality and timely reporting, cost
optimisation as well as intended innovative ways of creating and protecting value.

The internal control framework includes daily, monthly, quarterly, half-yearly and annual monitoring
mechanisms to ensure the control environment continues to be designed and operates effectively. The
internal control function works closely with the internal audit team in carrying out their monitoring role,
which is linked to performance appraisals. There were no significant changes to the internal controls
framework in the reporting period.

RISKS AND UNCERTAINTIES

In December 2015, the Government of Morocco deregulated fuel prices. Following consumer activism in
Morocco across several sectors during Q2 2018, the government initiated discussions with the Moroccan
Petroleum Group (GPM), the industry representative body, to discuss price regulation. Whilst discussions
have taken place, at this stage no plans regarding price regulation have been confirmed. During the first
half of 2018 Retail fuels in Morocco contributed 22% to Group's adjusted EBITDA compared to 29% for
the full-year 2017. Our 2019 guidance at IPO already reflected a $3/'000 litres decrease in overall Retail
gross cash unit margin, representing an estimated impact of approximately $15 million on adjusted
EBITDA, based on 2019 targeted Retail volumes.

Completion of the EIHL transaction is subject to satisfaction (or waiver, where applicable) of certain
conditions, including regulatory anti-trust approvals and non-objection. In the Democratic Republic of
Congo, a Government Ministry on 2 May 2018 filed a motion in the DRC courts asserting a right of pre-
emption in respect of EIHL's shareholding in Engen DRC S.A. (in which the Government holds a 40%
stake) which, if maintained, would have the effect of preventing the transfer of Engen DRC S.A. to the
Group. Engen DRC S.A. constitutes a material part of the EIHL Group. On the advice of counsel, the
Directors believe that this claim has no legal basis. The Company continues to work with the EIHL Group
to resolve this issue prior to the completion of the EIHL transaction. If the Company is unable to resolve
the matter to its satisfaction it may, amongst other things, look to exercise its rights and remedies under
the Share Sale and Purchase Agreement, which, depending on the circumstances, could include exercising
its right to terminate the Share Sale and Purchase Agreement.

Apart from the above, the principal risks and uncertainties faced by the Company are expected to remain
largely consistent with those described in the Vivo Energy plc Prospectus published on 4 May 2018.

SHAREHOLDER INFORMATION

Authorised, issued and outstanding shares as at 30 June 2018 were as follows:

                                                                                                                    Issued and
                                                                                                    Authorised     outstanding
Ordinary shares                                                                                  1,201,798,866   1,201,798,866

Effective 13 June 2018, the Company completed a court-approved reduction of capital. The purpose of
the reduction of capital was to provide distributable reserves which will allow the Company to make
future dividend payments. Following the reduction of capital, the number of issued shares and the rights
attached to those shares remained unchanged. The nominal value of the ordinary shares in the capital of
the Company was reduced by $1.00 from $1.50 to $0.50.

Subsequent to the end of the period, the Board approved an interim dividend of circa $0.01 per share,
amounting to approximately $8 million. The dividend is expected to be paid on 17 September 2018 to
shareholders of record at close of business on 17 August 2018. The dividend will be paid out of
distributable reserves as at 30 June 2018.

UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the three- and six-month periods ended 30 June 2018   

Terms and abbreviations

Term     Description                                Term    Description
DTR      Disclosure Guidance and Transparency       FVTPL   Fair value through profit and loss
         Rules                                      GAAP    Generally Accepted Accounting Principles
B2B      Business to business                       HSSE    Health, safety, security and environment
B2C      Business to consumer                       IAS     International Accounting Standards
EBIT     Earnings before finance expense, finance   IASB    International Accounting Standards Board
         income and income taxes                    IFRIC   IFRS Interpretation Committee
EBITDA   Earnings before finance expense, finance   IFRS    International Financial Reporting Standards
         income, income taxes, depreciation and     JSE     Johannesburg Stock Exchange
         amortisation                               LTIP    Long-term incentive plan
EBT      Earnings before income taxes               NCI     Non-controlling interest
EPS      Earnings per share                         OCI     Other comprehensive income
ETR      Effective tax rate                         P&L     Profit and loss
FVTOCI   Fair value through other comprehensive     PP&E    Property, plant and equipment
         income

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                                                     Three-month period ended           Six-month period ended
US $'000                                              Notes   30 June 2018       30 June 2017   30 June 2018      30 June 2017   
Revenues                                                  4      1,894,950          1,619,176      3,672,742         3,226,737   
Cost of sales                                                  (1,736,689)        (1,469,741)    (3,360,680)       (2,931,802)   
Gross profit                                              4        158,261            149,435        312,062           294,935   
Selling and marketing cost                                        (46,061)           (48,764)       (90,468)          (89,922)   
General and administrative cost                                   (62,135)           (48,736)      (102,627)          (80,490)   
Share of profit of joint ventures and associates                     6,732              4,045         12,144             6,741   
Other income (expense)                                    5          1,153                180          1,012               479   
EBIT                                                      4         57,950             56,160        132,123           131,743   
Finance income                                                       1,535              1,403          3,140             2,476   
Finance expense                                                   (13,365)            (8,746)       (21,432)          (17,229)   
Finance expense - net                                     6       (11,830)            (7,343)       (18,292)          (14,753)   
EBT                                                                 46,120             48,817        113,831           116,990   
Income taxes                                              7       (18,021)           (18,751)       (42,573)          (44,936)   
Net income                                                4         28,099             30,066         71,258            72,054   
Net income attributable to:                                                                                                      
Equity holders of Vivo Energy plc(1)                                25,198             27,449         64,981            66,387   
NCI                                                                  2,901              2,617          6,277             5,667   
                                                                    28,099             30,066         71,258            72,054   
OCI                                                                                                                              
Items that may be reclassified to profit or loss                                                                                 
Currency translation differences                                  (40,332)             14,036       (17,383)            20,537   
Net investment hedge gain                                            9,907                  -          4,918                 -   
Items that are never reclassified to profit or loss                                                                              
Re-measurement of retirement benefits                                   40                 79             73               759   
Income tax relating to retirement benefits                             (2)               (79)            (2)             (290)   
OCI, net of tax                                                   (30,387)             14,036       (12,394)            21,006   
Total comprehensive income                                         (2,288)             44,102         58,864            93,060   
Total comprehensive income attributable to:                                                                                      
Equity holders of Vivo Energy plc(1)                               (1,199)             39,583         53,785            84,710   
NCI                                                                (1,089)              4,519          5,079             8,350   
                                                                   (2,288)             44,102         58,864            93,060   
EPS (US $)(2)                                             8                                                                      
Basic                                                                 0.02              12.20           0.05             29.51   
Diluted                                                               0.02              12.00           0.05             29.02   

NON-GAAP FINANCIAL MEASURES(3)

                                                                    Three-month period ended            Six-month period ended
US $'000, unless otherwise indicated                           30 June 2018     30 June 2017   30 June 2018       30 June 2017   
Adjusted EBIT                                                        80,101           73,390        159,361            148,973   
EBITDA                                                               79,859           75,756        176,312            171,477   
Adjusted EBITDA                                                     102,010           92,986        203,550            188,707   
Adjusted net income                                                  46,942           43,591         95,037             85,579   
Adjusted diluted EPS(2) (US $)                                         0.04            17.91           0.07              34.93   

The notes are an integral part of these interim condensed consolidated financial statements.

(1) Formerly Vivo Energy Holding B.V. refer to the basis of preparation (note 1).
(2) Refer to the basis of preparation (note 1).
(3) Refer to the Non-GAAP financial measures definitions and reconciliations to the most comparable IFRS measures (note 4).

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

US $'000                                                                               Notes   30 June 2018   31 December 2017   
Assets                                                                                                                           
Non-current assets                                                                                                               
Property, plant and equipment                                                                       579,918            585,171   
Right-of-use assets                                                                                 136,333            148,413   
Intangible assets                                                                                   124,014            119,993   
Investments in joint ventures and associates                                                        222,173            218,801   
Deferred income taxes                                                                                41,545             42,627   
Available for sale investments                                                                        6,313              6,314   
Other assets                                                                               9         87,683             82,171   
                                                                                                  1,197,979          1,203,490   
Current assets                                                                                                                   
Inventories                                                                               10        449,802            353,129   
Trade receivables                                                                                   469,509            412,181   
Other assets                                                                               9        308,746            229,068   
Income tax receivables                                                                               13,675              8,452   
Other financial assets                                                                                5,662                  -   
Cash and cash equivalents                                                                           315,919            422,494   
                                                                                                  1,563,313          1,425,324   
Total assets                                                                                      2,761,292          2,628,814   
Equity and liabilities                                                                                                           
Total equity                                                                                                                     
Attributable to equity holders of Vivo Energy plc(1)                                                461,301            401,546   
Attributable to NCI                                                                                  50,436             46,075   
                                                                                                    511,737            447,621   
Liabilities                                                                                                                      
Non-current liabilities                                                                                                          
Lease liability                                                                                     100,764            121,261   
Borrowings                                                                                11        351,402            396,244   
Provisions                                                                                           88,020             91,982   
Deferred income taxes                                                                                52,816             51,388   
Other liabilities                                                                         12        176,938            168,245   
                                                                                                    769,940            829,120   
Current liabilities                                                                                                              
Lease liability                                                                                      20,914             12,496   
Trade payables                                                                                    1,062,122            868,521   
Borrowings                                                                                11        237,468            258,947   
Provisions                                                                                           18,576             20,866   
Other financial liabilities                                                                               -                664   
Other liabilities                                                                         12        120,432            152,409   
Income tax payables                                                                                  20,103             38,170   
                                                                                                  1,479,615          1,352,073   
Total liabilities                                                                                 2,249,555          2,181,193   
Total equity and liabilities                                                                      2,761,292          2,628,814   

The notes are an integral part of these interim condensed consolidated financial statements.

(1) Formerly Vivo Energy Holding B.V. refer to the basis of preparation (note 1).

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

US $'000                                                                                                                                                For the six-month period ended 30 June 2018
                                                                                 Attributable to equity holders of Vivo Energy plc(1)
                                                                                                          Other reserves
                                                                                                           Currency         Fair    Equity settled
                                          Share       Share    Retained                  Retirement     Translation        Value         incentive        NCI                                 Total
                                        Capital     Premium    Earnings     Reserves       Benefits      Difference     Reserves        schemes(2)   Reserves        Total         NCI       Equity
Balance at 1 January 2018                   30      244,753     309,218            -        (2,294)       (160,226)        2,446             1,904      5,715      401,546      46,075      447,621
Net income                                    -           -      64,981            -              -               -            -                 -          -       64,981       6,277       71,258
OCI                                           -           -           -            -             71        (11,267)            -                 -          -     (11,196)     (1,198)     (12,394)
Total comprehensive income                    -           -      64,981            -             71        (11,267)            -                 -          -       53,785       5,079       58,864
IPO-related reorganisation impact(3)    600,869   (241,618)   (364,511)    (135,272)          2,248        152,382       (2,446)           (1,904)    (5,715)        4,033           -        4,033
Share-based expense                           -           -           -            -              -               -            -             1,937          -        1,937           -        1,937
Dividends paid                                -           -           -            -              -               -            -                 -          -            -       (718)        (718)
Balance at 30 June 2018                 600,899       3,135       9,688    (135,272)             25        (19,111)            -             1,937          -      461,301      50,436      511,737


US $'000                                                                                                                                                For the six-month period ended 30 June 2017
                                                                             Attributable to equity holders of Vivo Energy Holding B.V.
                                                                                                          Other reserves
                                                                                                           Currency         Fair    Equity settled
                                          Share       Share    Retained                  Retirement     Translation        Value         incentive        NCI                                 Total
                                        Capital     Premium    Earnings     Reserves       Benefits      Difference     Reserves        schemes(2)   Reserves        Total         NCI       Equity
Balance at 1 January 2017                    30     244,753     473,501            -        (4,233)       (175,396)        2,281             1,814      5,715      548,465      39,993      588,458
Net income                                    -           -      66,387            -              -               -            -                 -          -       66,387       5,667       72,054
OCI                                           -           -           -            -            469          17,854            -                 -          -       18,323       2,683       21,006
Total comprehensive income                    -           -      66,387            -            469          17,854            -                 -          -       84,710       8,350       93,060
Share-based expense                           -           -           -            -              -               -            -                45          -           45           -           45
Dividends paid                                -           -   (284,000)            -              -               -            -                 -          -    (284,000)     (3,100)    (287,100)
Balance at 30 June 2017                      30     244,753     255,888            -        (3,764)       (157,542)        2,281             1,859      5,715      349,220      45,243      394,463

The notes are an integral part of these interim condensed consolidated financial statements.

(1) Formerly Vivo Energy Holding B.V. refer to the basis of preparation (note 1).
(2) Equity settled incentive schemes include the Long-Term Incentive Plan ('LTIP') and the IPO Share Award Plan.
(3) Refer to the basis of preparation (note 1).

CONSOLIDATED STATEMENT OF CASH FLOWS

                                                                                                        Six-month period ended
US $'000                                                                              Notes   30 June 2018        30 June 2017   
Operating activities                                                                                                             
Net income                                                                                          71,258              72,054   
Adjustment for:                                                                                                                  
Income taxes                                                                                        42,573              44,936   
Amortisation, depreciation and impairment                                                           44,189              39,734   
Net gain on disposal of PP&E and intangible assets                                        5          (829)               (888)   
Share of profit of joint ventures and associates                                                  (12,144)             (6,741)   
Dividends received from joint ventures and associates                                                8,929               6,700   
Current income tax paid                                                                           (62,438)            (72,090)   
Net change in operating assets and liabilities and other adjustments                     13       (35,877)              14,154   
Cash flows from operating activities                                                                55,661              97,859   
Investing activities                                                                                                             
Acquisition of businesses                                                                            (547)                   -   
Purchases of PP&E and intangible assets                                                           (60,803)            (39,396)   
Proceeds from disposals of PP&E and intangible assets                                                1,784               1,290   
Cash flows from investing activities                                                              (59,566)            (38,106)   
Financing activities                                                                                                             
Proceeds from issuance of shares                                                                       525                   -   
Net (repayments)/proceeds (of)/from bank and other borrowings                                     (65,864)             223,118   
Repayment of lease liability                                                                      (12,080)             (9,273)   
Dividends paid                                                                                       (718)           (287,100)   
Interest paid                                                                                     (21,924)            (12,121)   
Interest received                                                                                    3,140               2,475   
Cash flows from financing activities                                                              (96,921)            (82,901)   
Effect of exchange rate changes on cash and cash equivalents                                       (5,749)              11,962   
Net decrease in cash and cash equivalents                                                        (106,575)            (11,186)   
Cash and cash equivalents at beginning of period                                                   422,494             368,653   
Cash and cash equivalents at end of period                                                         315,919             357,467   

The notes are an integral part of these interim condensed consolidated financial statements.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of preparation

Vivo Energy plc ("Vivo Energy" or the "Company") was incorporated as a private limited company in the
United Kingdom on 12 March 2018 and re-registered as a public limited company on 9 April 2018. Vivo
Energy plc was incorporated in conjunction with the pre-IPO reorganisation of the Group. On 10 May
2018 the Company listed on the London Stock Exchange Main Market for listed securities and the Main
Board of the securities exchange operated by the Johannesburg Stock Exchange by way of secondary
inward listing.

References in these interim condensed consolidated financial statements to "Vivo Energy" or the "Group"
mean the Company and Vivo Energy Holding B.V. ("VEH", the holding company of the Vivo Energy Group
until admission), together with its consolidated subsidiaries and subsidiary undertakings. Therefore, the
interim condensed consolidated financial statements for the three- and six-month periods ended 30 June
2018 are presented for the Group with continuity, including the impact of the IPO reorganisation.

Effective 13 June 2018, the Company completed a court-approved reduction of capital. The purpose of
the reduction of capital was to provide distributable reserves which will allow the Company to make
future dividend payments. Following the reduction of capital, the number of issued shares and the rights
attached to those shares remained unchanged. The nominal value of the ordinary shares in the capital of
the Company was reduced by $1.00 from $1.50 to $0.50.

The Company's interim condensed consolidated financial statements have been prepared in accordance
with IAS 34 "Interim Financial Reporting Standards" as adopted by the European Union. The interim
condensed consolidated financial statements have been prepared under the historical cost convention
unless otherwise indicated.

These interim financial statements should be read in conjunction with the annual financial statements for
the year ended 31 December 2017, which have been prepared in accordance with IFRS as adopted by the
European Union.

2. Significant changes in the current and future reporting period

A number of new standards and amendments to standards and interpretations are effective for annual
periods beginning after 1 January 2018.

IFRS 2 "Amendments to Classification and Measurement of Share-based Payment Transactions" clarifies
the following:

- In estimating the fair value of cash-settled share-based payments, the accounting for the effects of
  vesting and non-vesting conditions should follow the same approach as for equity-settled share-based
  payments;

- Where tax law or regulation require an entity to withhold a specified number of equity instruments
  equal to the monetary value of the employees' tax obligation, which is then remitted to the tax
  authority, such an arrangement should be classified as equity-settled in its entirety, provided it would
  have been classified as equity-settled in absence of the net settlement feature;

- A modification of share-based payment that changes the transaction from cash-settled to equity-
  settled should be accounted for as (1) a derecognition of the original liability; (2) recognition of an
  equity-settled share-based payment at the modification date; and (3) any differences between the
  carrying amount of the liability at the modification date and the amount recognised in equity should
  be recognised in profit or loss.

The Group already applies these amendments.

IFRS 10 "Consolidated Financial Statements" and IAS 28 "Amendments to Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture" deals with situations where there is a sale or
contribution of assets between an investor and its associate or joint venture and the treatment of gains
or losses from such transactions. The IASB has not confirmed the effective date of this amendment;
however, early application is permitted. The Group does not anticipate that the application of these
amendments will have an impact on the Group's financial statements in future periods should such
transactions arise.

IFRIC 22 "Foreign Currency Transactions and Advance Consideration" addresses how to determine the
"date of transaction" for the purpose of determining the exchange rate to use on initial recognition of an
asset, expense or income, when consideration for that item has been paid or received in advance in a
foreign currency which resulted in the recognition of a non-monetary asset or non-monetary liability.

The Group already accounts for transactions involving the payment or receipt of advance consideration
in a foreign currency that is consistent with IFRIC 22 amendments.

IFRIC 23 "Uncertainty over Income Tax Treatments" provides additional guidance on the determination
of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is
uncertainty over income tax treatments under IAS 12. The Group has to determine the impact, if any, on
the interim condensed consolidated financial statements.

The Group does not anticipate that the application of these amendments will have an impact on the
Group's interim condensed consolidated financial statements.

There are no IFRS or IFRIC interpretations that are not yet effective that would be expected to have a
material impact on the Group.

3. Financial instruments by category

The table below sets out the Group's classification of each class of financial assets and financial liabilities
and their fair values for the current and the comparative period:

US $'000                                                                                                          30 June 2018
                                                                   Financial   Financial   Financial      Total
                                                                   assets at   assets at   assets at   carrying
                                                              amortised cost       FVTPL      FVTOCI      value     Fair value
Financial assets
Trade receivables                                                    469,509           -           -    469,509        469,509
Cash and cash equivalents                                            315,919           -           -    315,919        315,919
Available for sale investments                                             -           -       6,313      6,313          6,313
Other assets(1)                                                       92,419           -           -     92,419         92,419
Total                                                                877,847           -       6,313    884,160        884,160

(1) Other assets (note 9) exclude the following elements that do not qualify as financial instruments: prepayments, VAT and duties
    receivable and other government benefits receivable.

US $'000                                                                                                          30 June 2018
                                                                                    Financial        Total
                                                                               liabilities at     carrying
                                                                               amortised cost        value          Fair value
Financial liabilities
Trade payables                                                                      1,062,122    1,062,122           1,062,122
Borrowings                                                                            588,870      588,870             588,870
Other liabilities(1)                                                                  232,580      232,580             232,580
Lease liabilities                                                                     121,678      121,678             121,678
Total                                                                               2,005,250    2,005,250           2,005,250

US $'000                                                                                                      31 December 2017
                                                           Financial   Financial     Financial       Total
                                                           assets at   assets at     assets at    carrying
                                                      amortised cost       FVTPL        FVTOCI       value          Fair value
Financial assets
Trade receivables                                            412,181           -             -     412,181             412,181
Cash and cash equivalents                                    422,494           -             -     422,494             422,494
Available for sale investments                                     -           -         6,314       6,314               6,314
Other assets(2)                                               87,473           -             -      87,473              87,473
Total                                                        922,148           -         6,314     928,462             928,462

US $'000                                                                                                      31 December 2017
                                                                                    Financial        Total
                                                                               liabilities at     carrying
                                                                               amortised cost        value          Fair value
Financial liabilities
Trade payables                                                                        868,521      868,521             868,521
Borrowings                                                                            655,191      655,191             655,191
Other liabilities(24)                                                                 261,179      261,179             261,179
Lease liabilities                                                                     133,757      133,757             133,757
Other financial liabilities                                                               664          664                 664
Total                                                                               1,919,312    1,919,312           1,919,312

The Group has classified equity investments as financial instruments at FVTOCI (without recycling). These
investments are measured using inputs for the asset or liability that are in the absence of observable
market data, based on net asset value of the related investments (level 3 in the IFRS 13 fair value
measurement hierarchy). Since the value is based on the net asset value of the related investments, no
sensitivity analysis is presented.

(1) Other liabilities (note 12) exclude the following elements that do not qualify as financial instruments: other tax payable 
    and deferred income.
(2) Other assets (note 9) exclude the following elements that do not qualify as financial instruments: prepayments, VAT and duties
    receivable and other government benefits receivable.

4. Segment reporting

The Group operates under three reportable segments: Retail, Commercial and Lubricants.

Retail segment - Retail fuel is aggregated with Non-fuel revenue. Both the operating segments derive
revenue from retail customers who visit our retail sites. Retail fuel and Non-fuel revenues are aggregated
as the segments are managed as one unit and have similar customers. The economic indicators that have
been addressed in determining that the aggregated segments have similar economic characteristics are
that they have similar expected future financial performance and similar operating and competitive risks.

Commercial segment - Commercial fuel, LPG, Aviation and Marine are aggregated in the Commercial
segment as the operating segments derive revenues from commercial customers. The segments have
similar economic characteristics. The economic indicators that have been addressed are the long-term
growth and average long-term gross margin percentage.

Lubricants segment - Retail, B2C, B2B and Export Lubricants are the remaining operating segments.
Since these operating segments meet the majority of aggregation criteria, they are aggregated in the
Lubricants segment.

The segmented information is prepared using the same accounting policies as those described in the annual
consolidated financial statements for the fiscal year ended 31 December 2017.

The following table presents revenues and profit information regarding the Group's operating segments:

US $'000                                                                                   Six-month period ended 30 June 2018   
                                                                     Retail   Commercial          Lubricants      Consolidated   
Revenues from external customers                                  2,389,615    1,099,462             183,665         3,672,742   
Gross profit                                                        196,538       80,910              34,614           312,062   
Add back: Depreciation and amortisation                              20,526       10,544               1,303            32,373   
Gross cash profit                                                   217,064       91,454              35,917           344,435   
Adjusted EBITDA                                                     120,771       57,361              25,418           203,550  
 
US $'000                                                                                   Six-month period ended 30 June 2017   
                                                                     Retail   Commercial          Lubricants      Consolidated   
Revenues from external customers                                  2,071,564      987,578             167,595         3,226,737   
Gross profit                                                        184,647       73,447              36,841           294,935   
Add back: Depreciation and amortisation                              17,863        9,176               1,134            28,173   
Gross cash profit                                                   202,510       82,623              37,975           323,108   
Adjusted EBITDA                                                     110,937       54,591              23,179           188,707   

                                                                                                        Six-month period ended
US $'000                                                                                      30 June 2018        30 June 2017   
Share of profit of joint ventures and associates included in segment EBITDA                                                      
Lubricants                                                                                           5,706                   -   
Retail                                                                                               2,721               3,961   
Commercial                                                                                           3,717               2,780   
Total                                                                                               12,144               6,741   

The amount of revenues from external customers by location of the customers is shown in the table below.

                                                                                                        Six-month period ended
US $'000                                                                                     30 June 2018         30 June 2017   
Revenues from external customers by country                                                                                      
Morocco                                                                                           755,249              630,423   
Kenya                                                                                             635,018              668,828   
Ghana                                                                                             293,742              261,609   
Other                                                                                           1,988,733            1,665,877   
Total                                                                                           3,672,742            3,226,737 
  
US $'000                                                                                     30 June 2018     31 December 2017   
Non-current assets by country (excluding deferred tax)                                                                           
Netherlands                                                                                       195,727              182,459   
Morocco                                                                                           187,652              189,058   
Kenya                                                                                             122,198              125,184   
Other                                                                                             650,857              664,162   
Total                                                                                           1,156,434            1,160,863   

Reconciliation of Non-GAAP measures

We believe that including certain Non-GAAP financial measures in addition to IFRS measures provides
users of our interim condensed consolidated financial statements with enhanced understanding of results
and related trends and increases the transparency and clarity of the core results of our business. Non-
GAAP financial measures are derived from the interim condensed consolidated financial statements but
do not have standardised meanings prescribed by IFRS. The exclusion of certain items from Non-GAAP
performance measures does not imply that these items are necessarily non-recurring. From time to time,
we may exclude additional items if we believe doing so would result in a more transparent and comparable disclosure.

Gross cash profit, the Group defines Gross cash profit as gross profit before depreciation and
amortisation expense. Adjusted EBITDA, the Group defines EBITDA as earnings before tax, finance
expense, finance income, depreciation and amortisation. Adjusted EBITDA is arrived at by making further
adjustments to EBITDA for special items. Special items represent income or charges that are not
considered to represent the underlying operational performance and, based on their significance in size
or nature, are presented separately to provide further understanding of the financial performance of the
Group. Headline earnings, the Group defines Headline earnings as earnings based on net income
attributable to owners of the Group, before items of a capital nature, net of income tax.

                                                                                                        Six-month period ended
US $'000                                                                                     30 June 2018         30 June 2017   
EBIT                                                                                              132,123              131,743   
Depreciation and amortisation                                                                      44,189               39,734   
EBITDA                                                                                            176,312              171,477   
Special items:                                                                                                                   
Management Equity Plan                                                                              2,332               14,318   
Restructuring                                                                                       1,013                2,912   
IPO and Engen acquisition related expenses(1)                                                      23,893                    -   
Adjusted EBITDA                                                                                   203,550              188,707   

                                                                                                        Six-month period ended
US $'000                                                                                     30 June 2018         30 June 2017   
Net income                                                                                         71,258               72,054   
Adjustments to EBIT related to special items:                                                                                    
Management Equity Plan                                                                              2,332               14,318   
Restructuring                                                                                       1,013                2,912   
IPO and Engen acquisition related expenses(1)                                                      23,893                    -   
Tax on special items                                                                              (3,459)              (3,705)   
Adjusted net income                                                                                95,037               85,579  

                                                                                                        Six-month period ended 
US $                                                                                         30 June 2018         30 June 2017   
Diluted EPS (see note 8)                                                                             0.05                29.02   
Impact of special items                                                                              0.02                 5.91   
Adjusted diluted EPS(2)                                                                              0.07                34.93 

                                                                                                        Six-month period ended  
US $'000, unless otherwise indicated                                                         30 June 2018         30 June 2017   
Headline Earnings Per Share                                                                                                      
Net income attributable to owners                                                                  64,981               66,387   
Re-measurements:                                                                                                                 
Net gain on disposal of PP&E and intangible assets                                                  (829)                (888)   
Income tax on re-measurements                                                                         241                  271   
Headline earnings                                                                                  64,393               65,770   
Weighted average number of ordinary shares(3)                                               1,201,798,866            2,250,000   
Headline EPS (US $)(2)                                                                               0.05                29.23   
Diluted number of shares(3)                                                                 1,204,209,416            2,287,433   
Diluted headline EPS (US $)(2)                                                                       0.05                28.75   
ETR                                                                                                37.40%               38.41%   

(1) In May 2018, the Company became listed on the London Stock Exchange Main Market for listed securities and the Main Board of
    the JSE Limited by way of secondary inward listing. All IPO-related expenses are considered to be special items. Furthermore, on
    4 December 2017, the Company agreed to enter into a sale and purchase agreement with Engen Holdings (Pty) Limited ("Engen
    Holdings"), a 100% subsidiary of Engen Limited, in relation to the purchase of shares in Engen International Holdings (Mauritius)
    Limited ("Engen International Holdings Limited") for the exchange of a shareholding in Vivo Energy, with a cash element. This
    transaction is subject to regulatory approval. Related integration project expenses are treated as special items.
(2) Refer to the basis of preparation (note 1).
(3) Weighted average number of ordinary shares and diluted number of shares for the six-month period ended 30 June 2018 relate
    to Vivo Energy plc and for the six-month period ended 30 June 2017 to Vivo Energy Holding B.V.

5. Other income and expense                                                                                                      
                                                                                                        Six-month period ended
US $'000                                                                                           30 June 2018   30 June 2017   
Gain on disposals of property, plant and equipment and intangible assets                                    829            888   
Loss on financial instruments                                                                             (322)        (2,094)   
Other income                                                                                                505          1,685   
                                                                                                          1,012            479   
6. Finance income and expense                                                                                                 
                                                                                                        Six-month period ended   
US $'000                                                                                           30 June 2018   30 June 2017   
Finance expense                                                                                                                  
Interest on bank and other borrowings and on lease liability                                           (11,117)       (10,424)   
Interest on long-term debt including amortisation of set-up fees                                        (5,956)        (4,374)   
Foreign exchange loss                                                                                   (2,014)          (199)   
Accretion expense net defined benefit liability                                                         (1,053)        (1,048)   
Other                                                                                                   (1,292)        (1,184)   
                                                                                                       (21,432)       (17,229)   
Finance income                                                                                                                   
Interest from cash and cash equivalents                                                                   3,140          2,476   
                                                                                                          3,140          2,476   
Finance expense - net                                                                                  (18,292)       (14,753)   

7. Income taxes

Income tax expense is recognised based on management's estimate of the annual effective income tax rate
of 37.4% for the six-month period ended 30 June 2018 (38.4% for the six-month period ended 30 June
2017). The effective tax rate used for the six-month period ended 30 June 2018 is in line with
management's estimated annual income tax rate for the year, as no significant items impacting the effective
annual income tax rate have been identified.

8. Earnings per share

Basic and diluted EPS were computed as follows:

                                                                     Three-month period ended           Six-month period ended 
US $'000, unless otherwise indicated                           30 June 2018      30 June 2017    30 June 2018     30 June 2017   
Basic Earnings Per Share                                                                                                         
Net income                                                           28,099            30,066          71,258           72,054   
Attributable to owners                                               25,198            27,449          64,981           66,387   
Weighted average number of ordinary shares(1)                 1,201,798,866         2,250,000   1,201,798,866        2,250,000   
Basic EPS (US $)(2)                                                    0.02             12.20            0.05            29.51 
  
                                                                     Three-month period ended           Six-month period ended 
US $'000, unless otherwise indicated                           30 June 2018      30 June 2017    30 June 2018     30 June 2017   
Diluted Earnings Per Share                                                                                                       
Earnings attributable to owners                                      25,198            27,449          64,981           66,387   
Diluted number of shares(1)                                   1,204,209,416         2,287,433   1,204,209,416        2,287,433   
Diluted EPS (US $)(2)                                                  0.02             12.00            0.05            29.02   

9. Other assets                                                  
                 
US $'000                                                                                       30 June 2018   31 December 2017   
Other government benefits receivable(3)                                                             140,502             71,748   
Prepayments                                                                                         133,265            118,507   
VAT and duties receivable                                                                            30,243             33,511   
Employee loans                                                                                        8,613              8,137   
Indemnification asset on legal and tax claims                                                         7,726              9,868   
Other(4)                                                                                             76,080             69,468   
                                                                                                    396,429            311,239   
Of which current                                                                                    308,746            229,068   
Of which non-current                                                                                 87,683             82,171   
                                                                                                    396,429            311,239   
10. Inventories                                                                                                                  

US $'000                                                                                       30 June 2018   31 December 2017   
Fuel                                                                                                372,813            276,680   
Lubricants                                                                                           70,034             69,773   
Other                                                                                                 6,955              6,676   
                                                                                                    449,802            353,129   

Cost of sales as disclosed on the face of the Consolidated Statement of Comprehensive Income include
the total expense for inventory during the half-year period for $3,157m (full-year 2017: $5,869m). The
carrying value of inventory represents the net realisable value.

Write-downs of inventories to the net realisable value amounted to $5m as per 30 June 2018 (2017: $5m).
This was recognised as an expense during the period and included in cost of sales.

(1) Weighted average number of ordinary shares and diluted number of shares for the six-month period ended 30 June 2018 relate
    to Vivo Energy plc and for the six-month period ended 30 June 2017 to Vivo Energy Holding B.V.
(2) Refer to the basis of preparation (note 1).
(3) The amount relates to other government benefits receivable mainly in Morocco, Botswana, Madagascar, Senegal and Guinea.
(4) The amount in "Other" mainly comprises items such as brand promotion fund receivables and coupons to customers' deposits.

11. Borrowings

US $'000                                          Drawn on     Interest rate      Maturity     30 June 2018   31 December 2017   
Societe Generale(1)                               09/06/2017   Libor + 2.50%/3%   09/06/2022        433,943            479,889   
Bank borrowings                                                                                     154,927            175,302   
                                                                                                    588,870            655,191   
Of which current                                                                                    237,468            258,947   
Of which non-current                                                                                351,402            396,244   
                                                                                                    588,870            655,191   

(1) The amounts are net of financing costs. The loan amount is $438m (2017: $484m); financing costs are $4m (2017: $4m).

Current borrowings consist of bank borrowings which carry interest rates between 1% and 22% per annum.

The carrying amounts of the Group's non-current and current borrowings approximate the fair value.

The Societe Generale term loan facility was entered into on 6 June 2017. The facility matures on 9 June
2022 and has semi-annual repayments. Interest is paid quarterly at a rate of Libor plus a margin of 2.50%
per annum. Incremental facility was drawn down on 18 December 2017 and carries an interest of Libor
+2.5% for the amortised portion and Libor +3% for the bullet portion.

Key covenants:

- The Company needs to supply to the lender within 150 calendar days after year-end its audited annual
  consolidated financial statements, unaudited annual non-consolidated financial statements and the
  unaudited annual group accounts of each operating unit. Within 90 days after each half of each financial
  year, the Company should provide its unaudited non-consolidated financial statements, unaudited
  consolidated financial statements and unaudited group accounts for each operating unit for the
  financial half-year.

- With each set of financial statements, a financial covenants compliance certificate has to be provided
  showing the debt cover and interest cover.

- The loan carries some customary negative pledges such as on asset sale, securities over assets,
  mergers and guarantees subject in each case to some exemptions and permitted baskets. It also has
  a Change of Control clause triggering repayment if a shareholder, other than permitted ones, takes
  control of the Company.

No covenants were breached in the last applicable period.

12. Other liabilities      
                                    
US $'000                                                                                       30 June 2018   31 December 2017   
Oil fund liabilities                                                                                 86,519             88,070   
Deposits owed to customers                                                                           69,039             54,062   
Employee liabilities                                                                                 60,320             93,801   
Other tax payable                                                                                    59,529             50,587   
Deferred income                                                                                       5,261              8,888   
Contingent liabilities                                                                                3,825              3,825   
Other                                                                                                12,877             21,421   
                                                                                                    297,370            320,654   
Of which current                                                                                    120,432            152,409   
Of which non-current                                                                                176,938            168,245   
                                                                                                    297,370            320,654   

13. Net change in operating assets and liabilities and other adjustments

                                                                                                        Six-month period ended
US $'000                                                                                           30 June 2018   30 June 2017   
Inventories                                                                                           (105,305)       (15,080)   
Trade receivables                                                                                      (70,301)       (92,929)   
Trade payables                                                                                          215,123        141,003   
Other assets                                                                                           (80,463)       (42,163)   
Other liabilities                                                                                      (16,538)          8,495   
Provisions                                                                                              (3,897)         11,986   
Other                                                                                                    25,504          2,842   
                                                                                                       (35,877)         14,154   

14. Commitments and contingencies

Lease commitments

The table below analyses the Group's lease liabilities into relevant maturity groups based on the remaining
period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the
contractual undiscounted cash flows.

US $'000                                                                                                          30 June 2018
                                                                 Between 3
                                               Less than 3    months and 1     Between 1     Between 2      Over
                                                    months            year   and 2 years   and 5 years   5 years         Total
Lease liability                                      4,807          16,166        17,225        48,953    47,067       134,218

                                                                                                              31 December 2017
                                                                Between 3
                                               Less than 3   months and 1      Between 1     Between 2      Over
                                                    months           year    and 2 years   and 5 years   5 years         Total
Lease liability                                      4,846         14,540         17,217        49,906    55,712       142,221

Contingencies

Management has prepared a best estimate of its contingent liabilities that should be recognised in respect
of legal claims in the course of ordinary business. Some of the claims will be compensated by an indemnity
obtained from the former Shareholder (Shell). Should these cases be determined against the relevant Vivo
Energy Entity, such entity will be indemnified by the former Shareholder. An indemnification asset of $8m
(2017: $10m), equivalent to the fair value of the contingencies provided for by the Group in respect of
the indemnified claims that have been recognised.

In many markets there is a high degree of complexity involved in the local tax regimes. In common with
other business operating in this environment the Group is required to exercise judgement in the
assessment of any potential exposures in these areas. Where appropriate, the Group will make provisions
or disclose contingencies in accordance with the relevant accounting principles.

15. Management Equity Plan

In 2013, Vivo Energy Holding granted to certain senior managers and other senior employees phantom
options which entitled option holders to a cash payment based on the value of Vivo Energy Holding shares
upon exercise of their phantom options. Under the terms of the phantom options, all outstanding
phantom options would become fully exercisable upon admission.

However, the option holders have agreed to amend the terms of their outstanding phantom options such
that 30% of the outstanding phantom options became deemed to be exercised at admission and 70% will
become exercisable on the first anniversary of admission for a period of 12 months. Under the amended
terms, the option holders' entitlement to the cash payment is based on the market value of the shares at
the time of exercise net of a nominal per share exercise price.

The Management Equity Plan related liability as at 30 June 2018 amounted to $34m (31 December 2017: $49m).

16. Events after balance sheet period

Subsequent to the end of the period, the Board approved an interim dividend of circa $0.01 per share,
amounting to approximately $8 million. The dividend is expected to be paid on 17 September 2018 to
shareholders of record at close of business on 17 August 2018. The dividend will be paid out of
distributable reserves as at 30 June 2018.

RESPONSIBILITY STATEMENT

The Directors confirm that these interim condensed consolidated financial statements have been prepared
in accordance with the IAS 34, "Interim Financial Reporting", as adopted by the European Union and that
the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR
4.2.8, namely:

- An indication of important events that have occurred during the first six months and their impact
  on the condensed set of financial statements, and a description of the principal risks and
  uncertainties for the remaining six months of the financial year;
- Material related party transactions that have taken place in the first six months of the current
  financial year and that have materially affected the financial position or performance of the entity
  during that period; and any changes in the related party transactions described in the last annual
  report that could do so.

The Directors of Vivo Energy plc are listed on page 50 of the Vivo Energy plc Prospectus dated 4 May
2018; there are no changes in the period. A list of current directors is maintained on the Vivo Energy plc
website: http://investors.vivoenergy.com/group-overview/board-of-directors.

By order of the Board

Christian Chammas
Chief Executive Officer
2 August 2018

Johan Depraetere
Chief Financial Officer
2 August 2018

INDEPENDENT REVIEW REPORT

Report on the interim condensed consolidated financial statements

Our conclusion

We have reviewed Vivo Energy plc's interim condensed consolidated financial statements (the "interim
financial statements") in the Interim Report of Vivo Energy plc for the 6-month period and 3-month period
ended 30 June 2018. Based on our review, nothing has come to our attention that causes us to believe
that the interim financial statements are not prepared, in all material respects, in accordance with
International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union
and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.

What we have reviewed

The interim financial statements comprise:

- the consolidated statement of financial position as at 30 June 2018;
- the consolidated statement of comprehensive income for the 6-month and 3-month periods then ended;
- the consolidated statement of cash flows for the period then ended;
- the consolidated statement of changes in equity for the period then ended; and
- the explanatory notes to the interim financial statements.

The interim financial statements included in the Interim Report have been prepared in accordance with
International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union
and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.

As disclosed in note 1 to the interim financial statements, the financial reporting framework that has been
applied in the preparation of the full annual financial statements of the Group is applicable law and
International Financial Reporting Standards (IFRSs) as adopted by the European Union.

Responsibilities for the interim financial statements and the review

Our responsibilities and those of the directors

The Interim Report, including the interim financial statements, is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the Interim Report in accordance
with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.

Our responsibility is to express a conclusion on the interim financial statements in the Interim Report
based on our review. This report, including the conclusion, has been prepared for and only for the
company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook
of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this
conclusion, accept or assume responsibility for any other purpose or to any other person to whom this
report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

What a review of interim financial statements involves

We conducted our review in accordance with International Standard on Review Engagements (UK and
Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the
Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards
on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We have read the other information contained in the Interim Report and considered whether it contains
any apparent misstatements or material inconsistencies with the information in the interim financial
statements.

PricewaterhouseCoopers LLP
Chartered Accountants
London
2 August 2018

JSE sponsor: J.P. Morgan Equities South Africa (Pty) Ltd



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