Shell African licensee Vivo Energy has reported a slim tumble in third-quarter gross cash profit tagged to a slowdown in retail volume caused by short-term supply disruptions in Uganda, Kenya and Ivory Coast.
Vivo, which is listed on the London Stock Exchange and distributes and markets Shell-branded fuels and lubricants across 15 African markets, said gross cash profit dropped to US $167 million in the quarter ended September 30, from US $171 million a year before.
The company gave no detail on the nature of the supply disruptions, saying only that they were largely resolved.
It said total retail volumes grew just 1 percent in the quarter. Overall Q3 volumes grew to 2,323 million litres, which was a 2 up percent rise from last year. The company said it expected growth of 4 per cent for the full year.
Established in 2011 via a partnership between energy trader Vitol Group and UK-based private equity firm Helios Investment, Vivo has been looking to expand and develop its network of 1,800 filling stations.
Recently it purchased a network of service stations from Engen Holdings and expects to use them to allow it expand into extra eight African markets. Vivo also expects to exceed its earlier target of opening 80 retail stations this year.