Why is the Viva Energy (ASX:VEA) share price up 10% in a month?

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. –

Key points

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.

The company predicted its operating earnings to increase by up to 96% to between $470 and $490 million in FY2021. This was almost double the figure in FY2020.

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.

Should you invest $1,000 in Viva Energy right now?

Before you consider Viva Energy, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Viva Energy wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

The 5 best ASX energy shares of 2021 unmasked

Here are the top 10 ASX shares today

Why Australian Clinical Labs, Humm, Neometals, and Viva Energy are rising

ASX 200 (ASX:XJO) midday update: Magellan shares crash 28%, CIMIC tumbles

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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!