Insights

Why the Viva Energy (ASX:VEA) share price is in focus

The Viva Energy Group Ltd (ASX: VEA) share price is one to watch after the energy group’s first quarter update this morning.
The post Why the Viva Energy (ASX:VEA) share price is in focus appeared first on The Motley Fool Australia. –

A businessman holds a bolt of energy in both hands, indicating a share price rise in ASX energy companies

The Viva Energy Group Ltd (ASX: VEA) share price is in focus again after climbing 1.1% higher yesterday. Investors will be watching after the Aussie energy group’s latest quarterly update prior to the market open.

Why is the Viva Energy share price in focus?

Viva Energy CEO and managing director, Scott Wyatt, said:

Viva Energy is making strong progress on our business recovery program with encouraging results in all parts of our business during the quarter.

The Viva Energy share price will be one to watch as investors see if they share the same opinion. Industry fuel volumes remain down with coronavirus-induced lockdowns and border closures weighing on demand.

Viva Energy’s quarterly petrol production reflected the challenging conditions. Alliance sales volumes “progressively improved” throughout the first quarter despite rising oil prices. Premium petrol sales are up 11% on the same period last year and now comprise 32% of total petrol sales.

Petrol sales remained flat at 780 million litres (ML) while diesel segment sales climbed 4% from Q1 2020 to 1,678 ML. The aviation sector continues to struggle with jet sales down 62% on the prior corresponding period (pcp) to 311 ML. Similarly, lower cruise ship numbers impacted its marine volumes in “Other” which fell 39% on pcp to 261 ML.

One area that makes the Viva Energy share price worth watching was its Geelong refining margin. The Aussie energy group saw its refining margin surge 119% to US$5.9 per barrel, up from US$2.7 in Q1 2020. Viva Energy said the refining environment remains “challenging” as it works with the Federal Government on the long-term fuel security package.

Viva Energy expects to receive $19.6 million from the Government’s Temporary Refinery Production Payment program for Q1 2021. However, all non-essential refinery capital expenditure has been deferred to the second half of the year.

Foolish takeaway

The Viva Energy share price is worth watching in early trade after the group’s first-quarter trading update. Premium sales led the way for the Aussie company while several challenges remain for key business segments.

Shares in the energy group are down 3.7% this year and are underperforming the S&P/ASX 200 Index (ASX: XJO) on a year to date basis.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Ken Hall 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.

The post Why the Viva Energy (ASX:VEA) share price is in focus appeared first on The Motley Fool Australia.

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.

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 App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!