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Update on the impact of COVID-19
Vivo Energy plc
(Incorporated in England and Wales)
(Registration number: 11250655)
(Share code: VVO)
LEI: 213800TR7V9QN896AU56
ISIN: GB00BDGT2M75
25 March 2020
Vivo Energy plc
LSE:VVO / JSE:VVO
Update on the impact of COVID-19
Vivo Energy, the pan-African retailer and distributor of Shell and Engen-branded fuels and lubricants,
issues the below update given the rapidly evolving developments linked to COVID-19.
Our Priority
Vivo Energy’s first priority has, and always will be, the health and safety of our people, their families
and our customers. We have implemented a range of measures to protect our staff, including travel
restrictions, remote working and/or creating rotations to reduce the numbers of people in our offices
or facilities at one time. We are also supporting our local communities and host Governments in their
efforts to manage the situation, with initiatives including donations of fuel to Ministries of Health,
funding to support the fight against the spread of COVID-19, and as an example, we are blending hand
sanitiser for the Kenyan Government at our lubricants blending facilities in Mombasa.
Current trading
Trading for the year to date has been in line with expectations as there has been minimal impact from
the COVID-19 virus due to the small number of confirmed cases in our 23 African operating countries
to date. However, in recent days, a number of our host Governments, including in Morocco, Kenya
and Tunisia, have acted decisively to prevent the spread of COVID-19 within their countries. These
measures have included the closure of borders, schools and in certain cases, imposing restrictions on
the movement of people. As fuel is a critical resource, our retail sites remain open and we have
continued to supply to our commercial customers, but we have naturally seen a reduction in aviation
and transport volumes from the restrictions.
Financial Position
We have entered this period of uncertainty in a strong financial position and year-end 2019 net debt
to EBITDA of 0.5x. As at the end of February 2020, the Group had long-term debt of $0.4 billion, with
available short-term capital resources amounting to $1.7 billion. This comprises $0.2 billion of an
undrawn committed multi-currency revolving credit facility, $1.1 billion of undrawn unsecured short-
term bank facilities within our 23 operating entities for working capital purposes, and $0.4 billion of
cash on hand. $0.3 billion of the long-term debt is an amortising term loan which matures in 2022,
with principal repayments of $41 million due semi-annually (June and December) ahead of maturity.
The financial covenants attached to the long-term debt are that EBITDA should be no less than 4 times
interest and net debt should be no more than 3 times EBITDA.
Dividend
It is the Board’s current intention to maintain their recommendation of the payment of the full year
dividend, representing $34 million, as the business retains a strong balance sheet. However, as we
cannot predict the impact of COVID-19 to the business, as a rapidly evolving situation, the Board may
decide to review this recommendation ahead of the Annual General Meeting on 20 May.
Company Actions and Outlook
Due to the unprecedented situation, the company has taken steps to update its business continuity
planning to ensure we can continue to operate efficiently and has taken the decision to reduce
marketing spend and discretionary uncommitted capex in order to manage our expenditure. We are
closely monitoring stock levels and credit exposure to ensure that these continue to be managed
effectively in light of the changing demand.
As a result of the current uncertainty, the Group has decided to withdraw the guidance it published
on 4 March 2020, but will continue to monitor developments and provide further updates as necessary.
Ends
Notes to editors:
Media contacts: Investor contact:
Vivo Energy plc Vivo Energy plc
Rob Foyle, Head of Communications Giles Blackham, Head of Investor Relations
+44 7715 036 407 +44 20 3034 3735 / +44 7714 134 681
rob.foyle@vivoenergy.com giles.blackham@vivoenergy.com
Tulchan Communications
Martin Robinson, Suniti Chauhan
+44 20 7353 4200
vivoenergy@tulchangroup.com
This announcement contains inside information, which is disclosed in accordance with the
Market Abuse Regulation.
About Vivo Energy:
Vivo Energy operates and markets its products in countries across North, West, East and Southern Africa. The Group has
a network of over 2,200 service stations in 23 countries operating under the Shell and Engen brands and exports lubricants
to a number of other African countries. Its retail offering includes fuels, lubricants, card services, shops, restaurants and other
non-fuel services. It provides fuels, lubricants and liquefied petroleum gas (LPG) to business customers across a range of
sectors including marine, mining, construction, power, transport, wholesalers and manufacturing. The Company employs
around 2,600 people and has access to over 1,000,000 cubic metres of fuel storage capacity and has a joint venture, Shell and
Vivo Lubricants B.V., that sources, blends, packages and supplies Shell-branded lubricants.
For more information about Vivo Energy, please visit www.vivoenergy.com
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, am ong other
things, the future results of operations, financial condition, prospects, growth, strategies of the Group and the industry in whic h 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 futur e 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 announcement. 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.
JSE Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
Date: 25-03-2020 09:00:00
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