Company news: Viva Energy and Healius
Australian Equities sub-portfolio
Viva Energy gave an update to the market this week. It was a noticeable out performer – with its shares rising by more than 12% this week. Viva has been less impacted by COVID-19 than expected, with a decline in fuel volumes offset by strong margins. We held a view that the market had overly discounted the stock due to this uncertainty and continue to see upside in the company as its refining margins improve.
Healius announced that it has entered an agreement to sell its Medical Centres business. The market reacted positively to this, with its share price rising by 19% over the week. Healius has been a strong performer over the COVID-19 period, providing an exposure to the defensive Healthcare sector. The sale will put the company in a stronger financial position and will allow it to focus on its core imaging and pathology businesses.