Viva Energy (VEA) sales drop but better than feared
Viva Energy (VEA) +4.97%
Gave an update to the market on fuel sales amidst further lockdowns, particularly in Victoria. The petrol station operator saw petrol sales in the state fall 25% in July compared to the same month last year as a result of the stage 3 lockdowns for Melbourne. Fortunately, though total sales were flat on the same period last year with an increase in wholesale and agricultural demand for fuel. They also noted a fall in demand for the rest of Australia which was down around 11%.
The update was better than the market had been expecting with shares in both VEA and competitor Ampol (the old Caltex now trading under ALD) both trading more than 4% better today. Further lockdown measures in Victoria overnight, tightened state borders and outbreaks across the country threaten to weigh on fuel demand for them both though, and with Viva trading only marginally below pre-COVID levels the stock looks full here.
Viva Energy (VEA) Chart
