Viva energy vea

[Joshuatree]

Bought a starter pack today. Owns Shell assets and a % of a reit which owns the shell petrol stations. Listed in july. DYOR
Top 20 own 89%
$4.7 bill mkt cap, will be added to some indices

Trading below IPO hence quite a sell off presents an op.
An opinion,"As a result, this has left the stock trading on a P/E multiple of 13x and an EV/EBITDA multiple of just 6.2x.
6.2x.

"Those modest valuation multiples for a durable, highly-cash generative business with a strong competitive position, impossible-to-replicate infrastructure, and a long operating track record."

"This, to me, is by far the most under-valued large cap stock listed on the ASX today."

.Prospectus (https://hotcopper.com.au/threads/4302672/)

[NZSilver]

JT I popped it on my watchlist and di a fair bit of research after you mentioned it here.

Risks I see are really it was sold as the future of this industry is limited therefore very little growth with increase fuel economy of cars and cars moving to electric. Note varibility of the refinery profitability can have quite a big impact on results. They like to metion a lot of car growth in absolute numbers and percentage but all those new cars use bugger all gas compared to the ones they have replaced.

I also noted possibility of large R&M expense in the future (especially in the refinery)

They also seem to be having reduced fuel sales on individual outlets and are aquiring more to make up the difference.

Div yield will only be approx 5% with all above considered.

Medium term its a solid company and it will produce plenty of cash and a good div, (which will be getting more attractive by the day)

However I suspect its one to keep a close eye if you own on as I wouldnt describe its future as "bright", it may slowly have margins pressured downwards.

SP has dropped to $2.20 today, I will kep an eye on it, there may also be a small trade with quarterly rebalance.

[Joshuatree]

Thanks NZSilver. Im hoping for a rerating when any overhangs complete exiting and then myself exiting.So far my timing hasn't been the best:sleep:

[Joshuatree]

So far so good.VEA now in the ASX 200 ,ASX 100 not far away hopefully.S/P recovered to $2.38 atm. Low was re$2.17 on the 10th.
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[Joshuatree]

Up 13% today on this. Still down re 20c on its listing though.



Summary: Viva Energy and Coles extend and strengthen the Alliance

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[Joshuatree]

A reinvigorated retail platform primed for growth

Back above ipo, maiden div ,4.6c 6months
purchase of 50% westside (so far) 56 gas stations
and remaining 50% of liberty, supplies re 250 sites.

Outlook 2nd half, in line with 1st.

Download Document 2.33MB (https://hotcopper.com.au/documentembed?id=uOMxKKzFkiWRTLKhOROKAxjvSTYP4g%2B 6wBaZtvJ4ke92GA%3D%3D)

[Ricky-bobby]

Still holding this one JT? Have popped it on my watchlist

[nztx]

a bit like the former NZ "Z Energy" I guess

https://www2.asx.com.au/markets/company/vea

a couple of minor consolidations 2020 & 2021 and div looks a bit light

SP hasn't moved much - possibly due to high level of company held by major holders
but still not far of levels of July 2018, when ASX record first listed on VEA ticker

My gut feeling is the larger O&G producers (eg WDS) may well perform better than VEA

[Ricky-bobby]

It’s the refinery business that’s got me interested. A couple of oil brokers have told me refinery is the next thing as there are a limited number globally… luckily we shut ours down aye…