Vivo Energy plc SWOT and PESTLE Analysis
COMPANY PROFILE -Vivo Energy plc
Business Sector :Energy & Power
Operating Geography :United Kingdom, Europe, Global
About Vivo Energy plc :
Vivo Energy plc, also known as Vivo Energy, is a British downstream petroleum firm headquartered in London. It has subsidiaries and operations in 23 African countries, where it supplies, stores, distributes, and sells a variety of petroleum products. The company sources distribute, promote, and deliver fuels and lubricants as a Royal Dutch Shell and Engen Petroleum licensee. The firm was established in 2011. Retail, commercial, and lubricants are the three business segments of the company. Fuels, lubricants, card services, stores, restaurants, and non-fuel services are all part of the company's retail offering. It serves companies in a variety of industries, including maritime, aviation, mining, construction, power, transportation, and manufacturing, with fuels, lubricants, and liquefied petroleum gas (LPG) as well as solar energy solutions. The Company's non-retail gasoline business includes convenience stores, quick service and fast-casual restaurants, as well as lubrication bays, vehicle washes, and automated teller machines (ATMs). It has access to a fuel storage capacity of nearly 1,000,000 cubic metres. Its commercial business offerings include providing customers with bulk fuel. In July 2022, Vitol Group has secured approval for acquisition of the company.
Vivo Energy's USP lies in its being one of the leading players in the Oil & Gas Operations industry in South Africa. The vision statement of the company reads, "To become the most respected energy business in Africa".
Vivo Energy plc Revenue :
US$ 8,458 million – FY ending 31st Dec 2021 (y-o-y growth of -17%)
US$ 6,918 million – FY ending 31st Dec 2020
Competitive Analysis of Vivo Energy plc
Strengths | Weaknesses |
1. Expansive supply network in 20+ African nations 2. Strong financial performance in FY2021 3. Diversified product portfolio including alternative energy 4. Robust brand image throughout target regions 5. Delivering against strategy despite the pandemic by venturing in new markets and products | 1. Severe effect of COVID-19 on operations and strategy |
Opportunities | Threats |
1. Large-scale venturing into alternative sources of energy 2. Robust ESG corporate policy required to attract future investors 3. Potential buyout by Vitol may lead to new ventures | 1. Slow vaccination rates in Africa could impact long-term strategy 2. Shifting emphasis to alternative fuels will transform the energy sector 3. The accelerated pace of climate change threatens growth 4. Slow recovery in sub-Saharan African target geography |
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Detailed SWOT Analysis of Vivo Energy plc
Strength
1. Expansive supply network in 20+ African nations: Established in 2011, Vivo Energy plc currently has operations and export markets in 25+ countries. Then domestic markets include Botswana, Burkina Faso, Cape Verde, Gabon, Guinea, Ghana, Ivory Coast, La Reunion, Kenya, Mauritius, Malawi, Mali, Madagascar, Morocco, Namibia, Rwanda, Senegal, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe. The export markets include Democratic Republic of Congo and Ethiopia, which recorded a high sales revenue despite the pandemic. Under their two major subdivisions, Shell and Engen, the company has an extensive supply network maintained by offices in each country under its production. This gives the company a pan-African identity despite being headed in London, the United Kingdom. It remains a key company for supplying mining, construction, transport, power and industrial companies. LPG is supplied to consumers as well as to the wholesale market. The expansive network requires a robust supply chain which has helped them achieve their strategic goals.
The remaining section under "Strength" is available only in the 'Complete Report' on purchase.
Weakness
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Opportunity
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Threat
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Major Competitors :
- Certas Energy
- Afric Oil
- Atlas Oil
Major Brands :
- Shell
- Engen
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References used in Vivo Energy plc SWOT & PESTLE Analysis Report
1. Annual Report - https://investors.vivoenergy.com/~/media/Files/V/Vivo-Energy-IR/reports-and-presentations/2021/vivo-energy-annual-report-and-accounts-2020.pdf
2. How Morocco went big on solar energy - https://www.bbc.com/future/article/20211115-how-morocco-led-the-world-on-clean-solar-energy
3. Strategy and ambition: In Wang Yi visit, China’s long Africa game - https://indianexpress.com/article/explained/in-wang-yi-visit-chinas-long-africa-game-7720305/
4. Vaccines are finally arriving in Africa—but the rollout will be a challenge - https://www.economist.com/graphic-detail/2021/11/12/vaccines-are-finally-arriving-in-africa-but-the-rollout-will-be-a-challenge
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Vivo Energy plc SWOT and PESTLE analysis has been conducted by Riti Bhattacharyya and reviewed by senior analysts from Barakaat Consulting.
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