Australian oil and gas firm Viva Energy Group Ltd <VEA.AX> on Thursday slashed its 2020 capital expenditure forecast and deferred a share buyback in response to the ongoing coronavirus pandemic.
The fuel supplier has been hit by a double whammy of plunging demand for jet fuel as global airlines ground flights to contain the pandemic, and a crash in crude prices due to a price war between top producers Saudi Arabia and Russia.
The company said it now expects its annual capital expenditure to be between A$60 million ($37.24 million) and A$80 million, way below its earlier outlook of A$140 million to A$160 million.
An on-market share buyback to return A$680 million in proceeds from the company's realised investment in Viva Energy REIT <VVR.AX> will be delayed, it said.
Viva added it was reviewing maintenance plans at its Geelong refinery, scheduled for late August through October, citing time pressure due to steps it has taken to manage the effects of the pandemic.
(Reporting by Soumyajit Saha in Bengaluru; Editing by Muralikumar Anantharaman and Sherry Jacob-Phillips)
