(Reuters) – Australian fuel supplier Viva Energy Group on Wednesday reported a full-year loss compared to last year’s gain, impacted by falling global fuel demand due to the COVID-19 pandemic.
Coronavirus-related curbs on international travel and a domestic lockdown hit the refinery market for most of 2020, impacting their profits and jeopardizing the future of their factories.
Viva’s underlying net loss on taxes on a replacement cost basis was A $ 35.9 million ($ 28.4 million) in the year ended December 31, compared to A $ 135.8 million profit in the prior year.
The Victoria-based company said sales volumes for the year fell 16% to 12,339 million liters, within the company’s forecast range of 12,250 to 12,350 ml provided in December.
The company’s refinery operations resulted in an underlying EBITDA loss on a replacement cost basis of A $ 95.1 million in 2020 due to the pandemic. Replacement costs eliminate the impact of crude oil inventories and foreign exchange movements.
Viva also said it had made material progress in developing its gas terminal project at Geelong in Victoria, which the company wanted to revive following threats of closure.
($ 1 = 1.26 Australian dollars)
Reporting by Nikhil Subba and Tejaswi Marthi in Bengaluru; Edited by Forward Samuel
BRASILIA (Reuters) – Brazilian market regulator CVM said on Tuesday it had opened a second investigation into the announcement of an overhaul in state-controlled oil giant Petrobras, which sparked a two-day stock sell-off that wiped out more than 100 billion reais ($ 18.3 billion) . the value.
CVM on Monday announced the opening of an investigation into the leadership change announced by Brazilian President Jair Bolsonaro on Friday in a social media post. The commission said it was opening a second investigation in response to investors’ complaints.
BRASILIA, February 23 (Reuters) – Prosecutors at Brazil’s federal audit court, known as TCU, are trying to block state-controlled oil company Petrobras from replacing its executive officer as President Jair Bolsonaro announced.
According to a document seen by Reuters on Tuesday, prosecutors said they wanted to investigate whether the Petrobras reshuffle was motivated by Bolsonaro’s personal political interests as he plans to run again in the 2022 general election.
Reporting by Ricardo Brito, written by Anthony Boadle; Edited by Chizu Nomiyama
SYDNEY (Reuters) – Macquarie Group raised its earnings guidance on Monday, sending stocks to a 12-month high, as the North American energy business’s hefty profits from a winter storm swept Texas and other states.
Macquarie said it expects fiscal 2021 profit to jump by as much as 10%, following warnings two weeks ago that revenues will be “slightly down”.
The energy business unit, which is designed to move large amounts of gas to meet unexpected demand, alone raised the investment bank’s estimated overall return to about A $ 400 million, analysts said.
“Extreme winter weather conditions in North America have significantly increased short-term client demand for Macquarie’s ability to maintain critical physical supplies across the commodity complex,” the company said in a statement.
Macquarie is North America’s second largest gas marketer, after major oil company BP. It purchases natural gas and moves it along pipelines and networks, usually from low-use areas to high-demand markets.
A deadly winter storm that crippled infrastructure and left millions of Texans without electricity forced generators to compete for natural gas supplies, driving up prices sharply in a deregulated market.
Supply difficulties had given Macquarie an unexpected advantage.
“Macquarie appears to be making good use of financial market volatility and dislocation,” Bank of America Securities analysts said in a note, as it raised its earnings forecast for the Sydney-based firm.
Macquarie’s performance last year was hurt by the pandemic, with weak deal-making and worsening economic conditions driving up the cost of impairment.
However, a strong initial public offering of its majority-owned data analytics software business, Nuix, late last year and a refresh in the energy business have helped push its share price back to pre-pandemic levels.
The company, which also operates Australia’s largest asset manager and investment banking business, is bracing for an extra boost from a rebound in local M&A activity this year.
Macquarie shares rose 4.31% to A $ 148.39 early Monday, the highest level in a year, outperforming the broader flat market. Share prices declined slightly in afternoon trading.
Earlier this month, the Sydney-based financial conglomerate had forecast full-year revenue for the group to be “slightly” lower than its 2020 fiscal year.
Macquarie’s Global Commodities and Markets Division accounts for nearly 40% of its group revenue. Analysts have previously raised concerns that the pandemic could erode the division’s profits if high-energy industries shut down.
Reporting by Paulina Duran and Jonathan Barrett; Additional reporting by Shriya Ramakrishnan; Edited by Peter Cooney, Jane Wardell & Shri Navaratnam
RIO DE JANEIRO (Reuters) – Management executives of Petroleo Brasileiro SA are considering resigning en masse after the Brazilian government decided to replace Chief Executive Roberto Castello Branco, three people close to management said, asking not to be named because the information is personal.
President Jair Bolsonaro previously said he had decided to appoint former Defense Minister Joaquim Silva e Luna as CEO of a state-controlled oil company.
Reporting by Sabrina Valle; Edited by Christian Plumb