The Viva Energy Group Ltd (ASX: VEA) share price declined nearly 7% on Friday.
Viva Energy is one of Australia’s largest energy companies and it’s the exclusive licensee of the Shell brand.
Earlier, the energy business informed the market that its crude intake processed through the Geelong Refinery for the month of November 2018 was 3.5 million barrels.
It achieved an actual ‘Geelong Refining Margin’ (GRM) of US$7.1 per barrel compared to the revised assumption provided on 19 November 2018 of US$8 per barrel for November 2018 and December 2018.
According to Viva Energy, its November performance was further impacted by weakness in regional refining margins along with an unexpected outage of the third-party polypropolene plant co-located at the refinery site.
It further admitted that refining margins in December to date are below the November performance.
Viva Energy’s 2018 result will be subject to the actual regional refining margins and foreign exchange rates achieved, which it said are outside of the control of the company.
Extracted from The Motley Fool