Its valuation range is equivalent to an equity to net profit multiple of 13.1 times to 14.6 times.
The company owns an oil refinery at Geelong in Victoria, fuel import terminals across the country and about 1000 Shell branded service stations.
In a note to fund managers titled A well-oiled machine, Deutsche said since the acquisition from Shell, Viva has made significant capital investments and embarked on various growth initiatives across each business segment, which should provide future growth opportunities for investors.
Executive Series 28 Feb 19: Viva Energy REIT (VVR) Managing Director, Margaret Kennedy
These include expanding the retail network, growing fuel margin, expanding non-fuel margin, extending commercial sales and improving refinery throughput and reliability.
Deutsche expects capex requirements to moderate from 2018.
Extracted from AFR