Viva Energy Group has posted a 43 per cent drop in first-half underlying profit, hurt by skinny refining margins and weak consumer spending in its fuel marketing business.
Rival Caltex Australia also recently warned its profit is set to slump as the company battles slowing economic growth and margin pressure.
The petrol retailers are being hit like other retailers in Australia, which is growing at its slowest pace in a decade, with unemployment on the rise and consumer spending under pressure.
Viva said on Monday that underlying pre-tax earnings for its refining business fell 62 per cent to $18.4 million, coming in at the upper end of the zero to $20 million forecast provided by the company.
The company’s retail segment, which makes up the bulk of its earnings, dropped 8.0 per cent from the previous year to $283.3 million but fell within its revised guidance range.
Overall underlying profit after tax attributable at replacement cost basis for the six months ended 30 June came in at $50.9 million down from $90.0 million a year ago on a pro-forma basis.
The company, which listed on the Australian bourse last year, declared an interim dividend of 2.1 cents per share.