October 25, 2018 / 6:36 AM / 24 days ago

Vivo Energy third-quarter profit dips after supply disruptions

(Reuters) - Shell (RDSa.L) African licensee Vivo Energy (VVO.L) reported a slight fall in third-quarter gross cash profit on Thursday, hit by a slowdown in retail volume which it blamed on short-term supply disruptions in Kenya, Uganda and Ivory Coast.

The company, which distributes and markets Shell-branded fuels and lubricants across 15 African markets, said gross cash profit fell to $167 million (130 million pounds)in the quarter ended Sept. 30, from $171 million a year earlier.

It gave no detail on the nature of the supply disruptions, saying only that they were largely resolved.

Vivo, which listed in London in May, said total retail volumes grew just 1 percent in the quarter. Overall Q3 volumes grew to 2,323 million litres, up 2 percent from the last year. It said it expected growth of 4 percent for the full year.

Created in 2011 by a partnership between energy trader Vitol Group and UK-based private equity firm Helios Investment, Vivo has been looking to expand and develop its network of 1,800 filling stations.

Its recent purchase of a network of service stations from Engen Holdings should allow it to expand into another eight African markets and it expects to exceed its earlier target of opening 80 retail stations this year.

Reporting by Shariq Khan and Arathy S Nair in Bengaluru; Editing by Amrutha Gayathri

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