Viva Energy now needs to reduce debt post 'robust' first half - Morningstar

Waypoint REIT

30/07/2024 21:51

** Analysts at Morningstar expect Australia's Viva Energy
 VEA.AX  to focus on managing debt after a "robust" first half
    ** Brokerage says the fuel refiner's first-half updates
point to strength in commercial and industrial operations which
offset soft performance in retail business 
    ** Brokerage expects the recent On The Run (OTR) acquisition
by Viva Energy to have lifted its net debt to EBITDA ratio from
0.5 to 1.6
    ** OTR’s market-leading technology platform is being rolled
out to other Viva stores capable of supporting the format -
brokerage
    ** Morningstar says shares in Viva are slightly undervalued,
after they are down 17% from April highs 
    ** Stock has fallen 8.9% this year, as of last close 

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))