Macquarie sees subdued earnings for Australia's Viva Energy on higher costs

Waypoint REIT

14/07/2023 01:45

** Analysts at Macquarie say Australia's Viva Energy
 VEA.AX  will face an earnings downgrade on the back of negative
impact on its crude resale and refined product purchases that
were more severe than expected 
    ** Shares of Viva Energy rise as much as 1.4% to A$2.960
    ** Brokerage expects weaker Q2 performance from its Geelong
refinery in Victoria due to the plat-former unit outage 
    ** Says Q3 costs now appear to be higher with loss estimates
during July and August now guided at A$30 mln ($20.64 mln)- 40
mln net of insurance recoveries
    ** Macquarie slashes 2H EBITDA refining estimate to A$50 mln
from A$57 mln 
    ** Keeps target price unchanged at A$3.40 per share, retains
an "outperform" rating 
    ** Stock up 7% this year, as of last close, vs 3% increase
in the benchmark S&P/ASX 200 index  .AXJO  


     ($1 = 1.4533 Australian dollars)

 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))