StockMarketWire.com - Africa-focused fuel retailer Vivo Energy booked a 40% drop in annual profit, owing to lower demand for petrol during the pandemic.

The company, however, also said it would increase its dividend payout ratio amid a recovery in trading conditions.

Net income for the year through December fell to $90 million, down from $150 million year-on-year, as revenue slid 17% to $6.92 billion.

Fuel volumes dropped 7% to 9.64 billion litres and adjusted operating profit fell 16% to $360 million.

Vivo Energy held its annual dividend steady at 3.8c per share.

Looking forward, the company said it experienced a 'swift recovery' in the second half of 2020 and has growing confidence for the future, with the positive trends expected to continue into 2021.

'We demonstrated our commitment to dividends by maintaining our progressive policy through the pandemic and believe that now is the right time to increase the minimum pay-out ratio from 30% to 50% of attributable net income, and intend for future dividends to grow in line with earnings,' Vivo said.




At 8:01am: [LON:VVO] Vivo Energy PLC share price was 0p at 93.1p



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