Good Time to Be the Middle Man in the Oil Game
Oil price strength has fattened profit margins up the production, distribution and retail chains, with local refiners Viva and Ampol among those reaping the bottom-line benefits.
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VEA – Credit Suisse rates the stock as Outperform
The broker retains its Outperform rating and $2.57 target price.
Read MoreViva Energy to Upgrade Geelong Refinery
Viva Energy has given the go-ahead to a $300 million upgrade of its Geelong oil refinery to comply with new emissions limits and ensure the plant can continue operating.
Read MoreAmpol, Viva Say Nyet to Russian Oil
Australian refiners Ampol and Viva Energy say they will stop using Russian crude oil in their plants after shipments currently en route arrive, making them the country’s last two to do so.
Read MoreVEA – UBS rates the stock as Buy
UBS maintains a Buy rating, expecting the business will benefit from rising demand for fuel as travel restrictions ease. Target is raised to $2.50 from $2.45.
Read MoreProfit Briefs: BLD, VEA
As the reporting season winds down, here are snippets from the results announced yesterday by Kerry Stokes-controlled Boral Limited and fuel supplier Viva Energy Group.
Read MoreVEA – UBS rates the stock as Buy
Buy retained. Target rises to $2.45 from $2.35.
Read MoreGovernment Assistance Drives Viva Upgrade
A year on from the depths of the pandemic, oil refinery and service station operator Viva Energy has produced an upgrade amidst the current round of lockdowns.
Read MoreViva’s Lost Wages as Pandemic Bites
Viva Energy has followed its rival Ampol in revealing the damage done to the refining, distribution and retailing of oil and petrol products by COVID.
Read MoreVEA – Credit Suisse rates the stock as Neutral
Viva Energy will participate in an interim refinery production payment program provided by the Commonwealth government. CS retains a Neutral rating and raises the target to $2.03 from $1.78.
Read MoreVEA – Credit Suisse rates the stock as Neutral
The September quarter update was largely in line with Credit Suisse forecasts. The sustainability of the refinery is a large issue that the broker believes is not sufficiently embedded in investor thinking.
Read MoreViva Energy Eyes Closure Of Geelong Refinery
Investors seem to be fairly relaxed by the threat from Viva Energy to shut its Geelong oil refinery. Demand for petrol, distillates, and especially jet fuel have been cut by the lockdowns, with the latter likely to be a long term concern.
Read MoreBuyback Restart Sparks Rally In Viva Energy Shares
The share price of Viva Energy, Australia’s other listed oil refiner and marketer jumped more than 15% in yesterday’s big market surge but there hasn’t been a surge in demand for oil, petrol, jet fuel or chemicals.
Read MoreViva Energy To Shut Down Parts Of Geelong Refinery
The downturn in demand for energy, especially petrol and jet fuel is hitting the Australian refining and distribution sector with Viva Energy saying it’s Geelong refinery would be shutting down major processing units and scaling back output as the coronavirus crisis cuts demand for fuel.
Read MoreVEA – Credit Suisse rates the stock as Neutral
The company will delay its on-market buyback to assess the longer-term impact of the coronavirus crisis. Capital expenditure will be reduced to preserve cash flow.
Read MoreWho (Eventually) Benefits From The New Oil Shock
In more normal times – and nothing is normal at the moment – low oil prices benefit the global economy and stocks such as manufacturers and transport companies. Tim Boreham outlines those Australian companies which stand to benefit from significantly lower energy prices.
Read MoreVEA – UBS rates the stock as Buy
Viva Energy’s result was in line with recently downgraded guidance, although overall quality was better than expected, the broker notes. An announced $680m off-market buyback is a clear positive. The broker suspects earnings may have bottomed.
Read MoreVEA – UBS rates the stock as Buy
2019 guidance for operating earnings (EBITDA) of $371-401m is -15% below UBS estimates. The broker notes the business is, by its nature, volatile and that is reflected in the high PE discount to the market.
Read MoreRetail Fuel Competition Still Dogs Viva Energy
Despite higher refining margins, the focus is on Viva Energy’s retail fuel offering, which is likely to remain pressured by competition.
Read MoreVEA – UBS rates the stock as Buy
Viva Energy’s Sep Q update revealed refiner margins ahead of forecasts but retail margins remaining soft. This comes out as a net positive, with UBS suggesting 9% upside to consensus forecasts on better refiner margins with some offset from weak retail.
Read MoreVEA – Morgans rates the stock as Hold
Viva Energy Group’s first-half result met June guidance and Morgans’ forecasts as tough operating conditions persisted across retail, refining, and commercial.
Read MoreVEA – Deutsche Bank rates the stock as Buy
Viva’s update confirmed refinery earnings are even worse than the broker had feared, but there are signs of strength in Fuels & Marketing relative to the weak update provided by Caltex ((CTX)) last week. The broker doesn’t believe refining margins can get much worse, and retail margins are showing signs of improvement.
Read MoreVEA – Morgans rates the stock as Add
The company reported an improved gross refining margin in March of US$6.50 a barrel. Crude intake was also higher in March. Morgans notes the rise in oil prices has hurt retail fuel margins.
Read MoreViva Squeezed By Higher Energy Prices
Oil refiner and retailer Viva Energy has been bitten by rising global oil prices – not only have earnings taken a $35 million because of the sharp rise in oil prices so far this year but that it expects more pain to come.
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