High fuel use drives Vivo half-year profit to Sh26bn – Business Daily
Motorists fuel at the Kileleshwa Shell Petrol Station in Nairobi. PHOTO | SALATON NJAU | NMG
Vivo Energy Kenya, the retailer of Shell-branded fuel products posted a Sh25.964 billion jump in revenues in the six months ended June driven by increased fuel consumption and higher pump prices.
The oil marketer’s parent company, Vivo Energy Group Plc disclosed that it made Sh110.55 billion ($924 million) in revenues from the Kenyan market in the first half of the year, a 30.6 percent jump from Sh84.59 billion ($707 million) in a similar period last year.
The rise came at the back of an increase in consumption of super and diesel coupled with a spike in pump prices in the six months to June compared to the first half of last year.
The growth cemented Vivo Energy Kenya’s position as the biggest African market for Shell-branded fuel products ahead of Morocco and Senegal.
“Volumes were seven percent higher than half one 2021 owing to the continuing business recovery and our commercial lubricants segment, which benefitted from increased customer demand,” Vivo Energy Group Plc says in half-year disclosures.
Consumption of super and diesel increased 48.6 percent to 3.51 billion litres in the six months ended June from a similar period last year following the easing of travel restrictions that had been enforced to curb the spread of the Covid-19 pandemic.
Pump prices have also been on a steady rise since the start of the year due to the global rally in crude prices owing to supply disruptions caused by the Russian-Ukraine war.
A litre of super retailed at Sh159.12 in June from Sh127.14 in the same month last year in Nairobi while that of diesel sold at Sh140 from Sh107.66 in the period.
The jump in revenue also highlights the impact of Vivo Energy Kenya’s vast retail network across the country.
Vivo Energy Kenya controls 26.52 percent of the local petroleum sales market as of March and is targeting to open 20 fuel stations countrywide by end of the year in expansion plans.