This ASX energy share is stepping on the accelerator.
The post Why is the Viva Energy (ASX:VEA) share price up 10% in a month? appeared first on The Motley Fool Australia. –
The Viva Energy share price gained nearly 10% over the last month
Investors have reacted positively to operating earnings almost doubling
The company was the fifth best energy share to hold in 2021
The Viva Energy Group Ltd (ASX: VEA) share price is on a roll this past month.
Shares in the company increased 9.77% in the last month, from $2.15 to $2.36. However, the company’s shares closed down 1.26% today.
Let’s take a look at what might driving the energy company’s performance lately.
What’s happening at Viva Energy
The Viva Energy share price has been on a steady rise throughout the month with only a couple of minor bumps on its path.
Investors appear to have driven the company’s momentum after it provided a well-received financial update in late December.
Viva’s Coles Express business segment averaged 55 million litres a week in fuel sales. These sales have been boosted since lockdown restrictions ended.
Price increases in crude oil have also likely had a positive impact. The crude oil price has jumped nearly 15% from US$75.21 to US$86.41 per barrel this year.
Viva Energy was also ranked the fifth-best energy share to hold in 2021, as reported by my Foolish colleague Bernd in early January. The company’s share price gained 15.8% in 2021.
The Australian Financial Review reported yesterday that Viva has benefited from improved profit margins. The company owns the Geelong Oil Refinery in Victoria. Its rival Ampol Ltd (ASX: ALD) has also seen profit margins increase at its Lytton refinery in Brisbane.
Earlier in December, Viva Energy entered into a memorandum of understanding with natural gas producer Woodside. The Woodside Petroleum Limited (ASX: WPL) share price has also surged 16% in the past month.
Viva Energy share price snap shot
The Viva Energy share price is up 2.16% in a week and 0.43% year to date. In the past year, the company’s shares have jumped a healthy 25.33%.
In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned 8.75% in the past year.
Viva Energy has a market capitalisation of nearly $3.7 billion based on its current share price.
The post Why is the Viva Energy (ASX:VEA) share price up 10% in a month? appeared first on The Motley Fool Australia.
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.