Report
Mark Taylor
EUR 100.00 For Business Accounts Only

Refiner Margins Head in the Right Direction; Now for Alliance Volumes. No Change to AUD 3.00 FVE

No-moat Viva Energy’s share price has taken tentative steps toward a recovery following a rout precipitated by a corrected dysfunction in the Coles alliance, and exacerbated by the collapse of regional refining margins. At AUD 2.30, the shares are 35% above December AUD 1.70 lows, although they remain below 2018’s AUD 2.50 IPO price and even further below our unchanged AUD 3.00 fair value estimate.
Regional refining margins fell sharply from the second half of 2018 because of an oversupply of ga...
Underlying
VIVA Energy

Viva Energy Group Ltd. Viva Energy Group Ltd is an Australia-based integrated downstream petroleum company. The Company operates across three business segments: Retail, Fuels and Marketing; Refining; and Supply, Corporate and Overheads. Retail, Fuels and Marketing segment consists of retail and commercial operations. Retail, which supplies and markets fuel products and lubricants through a national network sites. Commercial, which supplies of fuel, lubricants and specialty products to commercial customers. Refining segment owns and operates the Geelong Refinery, in Victoria, which converts imported and locally sourced crude oil into petroleum products including gasoline, diesel, jet fuel, aviation gasoline, gas, solvents, bitumen and other specialty products. Supply, Corporate and Overheads segment owns contracted access to a national infrastructure network comprising terminals, retail sites, storage tanks, depots and pipelines positioned across metropolitan and regional Australia.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Mark Taylor

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