Puma Energy announces Q2 2020 results

20 Aug 2020

Singapore, 20 August 2020 – Puma Energy today announced its second quarter financial results for the three month period ended 30 June 2020.

  • Stable financial performance despite impact of COVID-19 across markets
  • Sale of Puma Energy’s Australian fuels business completed on schedule
  • Decisive management action to reduce costs helped mitigate COVID-19 challenges

Singapore, 20 August 2020 – Puma Energy today announced its second quarter financial results for the three month period ended 30 June 2020.



*NB All financial figures are presented excluding the impact of IFRS16


Financial Highlights

  • Achieved an EBITDA of US$150 million, a 10.1% increase compared to the second quarter of 2019
  • Recognising the divestments in 2019, H1 performance indicates underlying organic growth of 2%
  • Sales volumes down by 16.9% but starting to recover since April and offset by a 18.0% increase in unit margins
  • Reduced fixed costs by 7.4%, to US$196 million in the quarter, in line with expectations
  • Disciplined approach to capital expenditure, prioritising investments which will position the business for a sustainable recovery post-lockdown
  • Managed approach to reduction of net debt in line with previous commitments and recognising the liquidity challenges as a result of the impact of COVID-19
  • Prepaid US$200 million of the three year term loan so far during 2020, including US$50 million in August 2020 

Strategic and Operational Highlights

  • Safely maintained the provision of the essential services that our customers rely on throughout the crisis, and sustained the safety performance with a lost time injury frequency rate (LTIFR) of 0.9 per million hours worked
  • Completed the sale of the Australian fuels business for AU$425 million on time and as planned
  • Delivered operational improvements of US$37 million in the first half of 2020, in line with the Company’s commitment to operational excellence and ahead of budget
  • Reorganising the business to create dedicated Downstream, Infrastructure and Future Energies business units to further accelerate value creation and cost reduction 

Commenting on the results, Emma FitzGerald, CEO, said:

Puma Energy has delivered these results in an extraordinarily challenging environment. I am proud of the team’s agility and resilience which allowed us to provide essential services to our customers safely. The COVID-19 pandemic has reinforced the importance of executing our customer-led strategy, and reducing operating expenditure while maintaining a laser-like focus on our customers’ needs, even in the most difficult of times.  

“In line with our strategy to focus on high potential markets, I am pleased to confirm that we successfully completed the sale of our Australian fuels business in June. We will continue to simplify the business, reduce costs and drive the growth that will position Puma Energy for the new energy era. This focus demonstrates our balanced approach to overcoming this crisis, building profitability and creating a sustainable business for the long term. 

“We believe many of the core markets in which we operate are starting to emerge from the COVID-19 crisis, particularly in Africa. This recovery and the decisive measures we have taken to control costs and refocus the business post pandemic, mean that, subject to the impact of any potential second wave of COVID-19, the business can expect EBITDA in 2020 to be broadly in line with 2019. We remain vigilant and are navigating these unprecedented times with care.” 

Financial Overview

As markets continue to adjust to the long-term effects of COVID-19, the Company’s financial and operational performance has remained steady throughout the second quarter, demonstrating the impact of executing the customer-led, five-year sustainable growth plan while navigating macroeconomic headwinds. 

The Company achieved Q2 Earnings Before Income Tax Depreciation and Amortisation (EBITDA) of US$150 million, a 10.1% increase compared to the second quarter of 2019. Following continued strategic cost reduction efforts to streamline the business and deliver operational improvements, the Company has further reduced its fixed costs by 7.4%, to US$196 million in the quarter. The Company maintained a disciplined approach to capital expenditure, prioritising investments which will underpin asset integrity and accelerate recovery. 

The marginal decrease in gross profit to US$349 million compared to the same period last year, is a reflection of the lower demand from COVID-19, partially offset by higher margins and lower costs. In Q1 the Company noted it expected a contraction in negative working capital which has materialised, due to anticipated lower crude prices and has been exacerbated by COVID-19 volume reductions. 

Strategic and Operational Overview

Due to global lockdowns and travel restrictions implemented in response to COVID-19, sales volumes decreased by 16.9% for the quarter, but since April there have been welcome signs of recovery in volumes and margins, especially for the Company’s operations in Africa. Throughout the crisis, colleagues have worked tirelessly to ensure continuity of the essential services that Puma Energy provides to the communities it serves, responding to customers’ needs while continuing to prioritise safety at all times. 

The completion of the sale of Puma Energy’s Australian fuels business to Chevron for AU$425 million is evidence of the management team’s ability to deliver against stated commitments. Proceeds from the sale will be used to deleverage in a balanced way, in three tranches, with the first payment completed by mid-August as we manage through this recovery. This brings the total pre-paid term loan in 2020 to US$200 million. 

Puma Energy also remains committed to further non-core asset disposals, delivering US$23 million so far this year and targeting US$100 million by the end of 2020. This will further simplify the business, with a focus on the Company’s core downstream business, and contribute to the wider long-term efforts to strengthen the balance sheet. 


Subject to the potential impacts resulting from a material second wave of COVID-19, the expectation for Puma Energy’s EBITDA for 2020 is broadly similar to the 2019 reported levels. This will be driven by progression in both the delivery of the Company’s  customer-led growth plan and the strategic disposal of non-core assets. Once divestments are taken into account it is expected that this will demonstrate underlying organic growth year-on-year. 

Accelerating growth in a post-COVID 19 future

Puma Energy is a diverse business operating in emerging markets around the world with distinct business models suited to the sectors in which it operates. In the coming months, the business will be reorganised into three business units: the core ‘Downstream’ business, an ‘Infrastructure’ business and a ‘Future Energies’ business. This will optimise value creation for the Company, its customers and its shareholders. 

  • A core ‘Downstream business unit’ will consist of five customer-focused lines of business: retail, commercial lubricants, bitumen, and aviation in the Company’s ‘priority growth markets’.
  • An ‘Infrastructure business unit’ will be organised around 34 Marine & Inland terminals and storage facilities. It will focus on safe storage and operation of assets while maximising commercial value from them.
  • A ‘Future Energies business unit’ with a ‘start-up’ philosophy allow us to rapidly scale our activities and deliver lower carbon alternatives for Downstream customers in the context of the energy transition. 

With these strategic organisational changes, the Company will accelerate its five-year plan while continuing to divest from non-core assets and markets. This will create a more focused and agile business for sustainable and profitable future growth in a fast-changing energy landscape. 

- ENDS -

For press queries, please contact:

FTI Consulting

Genevieve Ryan | Caroline Cutler

Tel: +44 (0) 20 3727 1000

Email: pumaenergy@fticonsulting.com

For investor queries, please contact:


Further information can be located at: https://www.pumaenergy.com/en/investor-relations/home/ 

About Puma Energy

Puma Energy is a leading global energy business with a customer-focused approach to safely providing energy solutions in 46 countries across six continents. Puma Energy has around 3,000 retail sites, a presence at over 80 airports and a network of 100 storage terminals. Our purpose is to energise communities to help drive growth and prosperity by sustainably serving our customers’ needs in high potential countries around the world. 

For further information visit: www.pumaenergy.com


Cautionary Statement

This announcement is not being made in and copies of it may not be distributed or sent into any jurisdiction where distribution would be unlawful.


Forward-looking statements

Some of the information included in this announcement contain forward-looking statements. You can identify these forward-looking statements by use of words such as “strategy,” “expects,” “continues,” “plans,” “anticipates,” “believes,” “will,” “estimates,” “intends,” “projects,” “goals,” “objectives,” “guidance,” “targets,” “forecasts” or “could”, the negative of such terms and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts. Although Puma Energy believes that the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of Puma Energy or any of its directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this announcement. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of Puma Energy or any of its directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this announcement.

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