Viva Energy $66.7 million write down

Company News

by Katrina Bullock

Viva Energy Group (ASX:VEA) revised its EBITDA forecasts for the 2018 financial year from its refining business, down from $216.7 million to approximately $150 million.

It attributes the $66.7 million write down to lower than expected regional refining margins in the second half of the 2018 financial year and lost production as a result of the disruption in electricity supply from the external power grid in August.

This was exacerbated by higher crude prices and growing gasoline stocks over the past month and a half.

In other segments, its total fuel volumes for FY2018 are expected to be between 1 and 1.5 per cent below the prospectus forecast. Notwithstanding the weaker volume performance, Viva Energy expects to exceed the FY2018 underlying forecasts for non-refining segments by approximately $5 million due to continued cost management.

Shares in Viva Energy Group (ASX:VEA) are down 12.68 per cent to $1.79.
 

Katrina Bullock

Finance News Network
Katrina joined FNN in 2018. She holds a Bachelor of Laws (Honours first class), a Bachelor of Business (Distinction) and is currently undertaking a PhD in Law focused on stock exchange disclosures and corporate governance. She previously worked as a corporate lawyer in an Australian top tier commercial law firm and is currently the General Counsel for Greenpeace Australia Pacific.