(Reuters) - Australian oil refiner and retailer Viva Energy Group <VEA.AX> on Monday posted a 43% drop in first half underlying profit, hurt by skinny refining margins and weak consumer spending in its fuel marketing business.
Rival Caltex Australia <CTX.AX> also recently warned its profit is set to slump as the company battles slowing economic growth and margin pressure.
The gasoline retailers are being hit like other retailers in Australia, which is growing at its slowest pace in a decade, with unemployment on the rise and consumer spending under pressure.
Underlying pre-tax earnings for Viva's refining business fell 62% to A$18.4 million ($12.4 million), coming in at the upper end of the zero to A$20 million forecast provided by the company.
The company's retail segment, which makes up the bulk of its earnings, dropped 8% from the previous year to A$283.3 million, but fell within its revised guidance range.
Overall underlying profit after tax attributable at replacement cost basis for the six months ended 30 June came in at A$50.9 million down from A$90.0 million a year ago on a pro-forma basis.
The company, which listed on the Australian bourse last year, declared an interim dividend of 2.1 cents per share.
(Reporting by Shreya Mariam Job in Bengaluru; Editing by Sandra Maler and Sonali Paul)
