I have no particular expectation for their refining business, which will probably continue to remain very volatile.
Probably more interesting to focus on their 2 other divisions : retail and commercial.
Based on their FY 22 results, these 2 divisions together generated $445 m of underlying free cash flow* (vs 273 m the year before).
This is significant as this free cash flow represents 10 % of the enterprise value.
However, it is a bit biased because this free cash flow is calculated before the effect of working capital**, financial charges and taxes.
This is not a problem for working capital (positive contribution to cash flow in FY 22) and financial charges (the group was net cash at 31/12/22).
But we probably need to adjust the above free cash flow for a normal tax rate of 30 %.
If we do this, the underlying free cash flow for retail and commercial (after tax) was around 288 m in FY 22 and still represents a significant free cash flow yield of 6.4 %.
This level of free cash flow (excluding the refining business) does not reflect today's potential of free cash flow for 2 main reasons :
- it does not fully include the 2 recent acquisitions (Coles Express*** and OTR),
- it does not take into account the large improvement of EBITDA (RC) during H1 23 : + 41 % yoy (excluding refining business).
If we include these 2 elements to get a potential free cash flow after tax (excluding the refining business), Viva Energy has probably a free cash flow yield of around 8 %.
* Also good to see that this free cash flow was fully explained by large EBITDA (585 m in FY 22 vs 405 m in FY 21)
** my understanding. I may be wrong on that point.
*** Coles Express consolidated only since 1/5/23 and OTR acquisition not yet finalised.
- Forums
- ASX - By Stock
- VEA
- Ann: Viva Energy to acquire OTR Group
Ann: Viva Energy to acquire OTR Group, page-3
-
- There are more pages in this discussion • 5 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add VEA (ASX) to my watchlist
(20min delay)
|
|||||
Last
$2.96 |
Change
0.040(1.37%) |
Mkt cap ! $4.720B |
Open | High | Low | Value | Volume |
$2.94 | $2.98 | $2.92 | $8.481M | 2.877M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 7500 | $2.95 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$2.96 | 52951 | 4 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 7500 | 2.950 |
4 | 45397 | 2.930 |
5 | 88728 | 2.920 |
3 | 20367 | 2.910 |
12 | 49015 | 2.900 |
Price($) | Vol. | No. |
---|---|---|
2.960 | 52951 | 4 |
2.970 | 33324 | 2 |
2.980 | 47400 | 5 |
2.990 | 42564 | 4 |
3.000 | 6943 | 4 |
Last trade - 16.10pm 02/10/2024 (20 minute delay) ? |
Featured News
VEA (ASX) Chart |