ABOUT VIVO ENERGY
📊 Vivo Energy energy was founded in 2011 as a downstream function of Shell operations in Africa. Initially, its operations began in Cape Verde, Senegal, Madagascar, Mali, Mauritius, Morocco and Tunisia. In 2013 the company began its retail expansion program, adding over 100 service stations in the year.
📊 Today the company is an Africa-based marketer and distributor of Shell fuels and lubricants with more than 1800 service stations in more than 15 countries across the continent. The company’s service portfolio functions in three market sectors, being retail, commercial and lubricants, with its retail sector taking up 60% of its operations, commercial consisting of 28% and the rest belonging to lubricants.
📊 The company functions to deliver lubricants and fuels to countries without service stations, with more than 500 service stations distributed across the continent today.
📊 Registered as a company in the UK, Vivo is listed on the London Stock Exchange as well as the Johannesburg Stock Exchange (JSE), where it currently trades under the stock symbol –VVO with a market cap of over R26 billion.
VISION & VALUES OF VIVO ENERGY
- With the opening of 116 new retail outlets in 2017 alone, Vivo has grown to be the second largest fuel retailer in Africa, its retail services supporting the majority of the company’s growth across the continent.
- As such,Vivo Energy has been operating under a strategic expansion plan, adding value to its asset portfolio by improving its outlets with upgraded convenience stores. The company has also worked to bolster its market presence through strategic partnerships with Burger King and KFC, which has worked to attract further clientele to its already burgeoning retail outlets with these popular in-store franchises, as well as by adding a variety of other convenient services such as car washes and oil changes to its repertoire.
- Added to this, the company’s deal with Engen is forecast to add a further 500 retail stations to its collection.
- Apart from its high growth record in the retail sector, Vivo’s Vitol Aviation brand supplies 23 airports across 8 African countries with aviation fuel as well as an increasing number of merchant fleets in the marine transport industry, as well as fuel to a variety of mining operations and energy producers. These comprehensive fuel and lubricant packages have served to bolster its commercial sector, enhancing its overall performance.
- All in all, Vivo Energy’s solid portfolio and strong performance in its three markets will serve to boost its share price and deliver good dividends for those who choose to purchase them on the JSE.
MARKET PERFORMANCE OF VIVO ENERGY
- While the data from the live online stock charts indicates a recent decline in Vivo’s share price, economic forecasts show that its dominant position in the African markets, bolstered by its strong backing from Shell, is set to deliver long-term growth in these developing nations.
- The African fuel market has maintained steady growth since 2000, and with a broadening mine industry in Africa, Vivo’s products are set for increased demand, which in turn will deliver good returns for investors who buy shares on the JSE.
- This long-term economic growth forecast coupled with Vivo Energy’s extensive expansion is set to cause an increase in its share price, making this a solid buy in 2019 and beyond for investors who hope to reap rewards in the long run.