Virši-A CEO: No Dividend Hike Planned for Shareholders
- Energoresursu tirgotāja AS "Virši-A" is maintaining its current dividend policy to fuel further expansion and development, according to Jānis Vība, the company's Chairman of the Board and CEO.
- Virši-A is strategically positioning itself as a leader in the alternative fuels market.
- The location of the biomethane plant is strategically chosen, situated near large farms to ensure a steady supply of resources.
Virši-A Prioritizes Investment in Growth Over Increased Dividends
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Energoresursu tirgotāja AS “Virši-A” is maintaining its current dividend policy to fuel further expansion and development, according to Jānis Vība, the company’s Chairman of the Board and CEO. This strategy was outlined during a webinar discussing the company’s 2024 financial results.
Strategic Focus on Alternative Fuels
Virši-A is strategically positioning itself as a leader in the alternative fuels market. The company currently offers compressed natural gas (CNG) at ten of its fuel stations and provides electric vehicle (EV) charging at 24 locations. This commitment is further demonstrated by the ongoing construction of a biomethane plant in Naukšēni, Valmiera region.
The location of the biomethane plant is strategically chosen, situated near large farms to ensure a steady supply of resources. According to Vība,”Zemes darbi ir sākti,lai pēc tam varētu nodarboties ar betonēšanu,pamatiem,tehnoloģiju uzstādīšanu un citiem darbiem. Vienlaikus ir redzama arī sagaidāmā atdeve, jo ir noslēgti līgumi ar šo produktu pircējiem Eiropā.”
The completion of the biomethane plant is projected for the first quarter of 2026.
Expansion and Retail Growth
In the past year, “Virši-A” operated 82 fuel stations and aims to expand to 90 stations by 2027. Last year saw the opening of ten new retail locations, including a store in the “Origo” shopping center and the company’s first fuel station in Lithuania.
Further expansion is planned for this year, with a new fuel station slated to open in Salacgrīva in June.
Market Dynamics and Challenges
Vība addressed the challenges in the fuel market,noting that ”nekas ārkārtējs degvielas tirgos nenotika,” but highlighting the impact of geopolitical tensions in the Middle East on oil product logistics. he also pointed out the conflicting influences of the new U.S. management on oil prices.
He elaborated, “No vienas puses, notiek tarifu karš, kas nav labi ekonomikai un var novest pie lielas inflācijas, bet, no otras puses, sankciju politika, kas vērsta uz Venucuēlu un Irānu, varētu tikt pastiprināta, kas savukārt varētu samazināt piedāvājumu.”
The retail fuel sector in Latvia experienced intense competition, characterized by promotions, discounts, and marketing efforts targeting individual consumers. However, markups remained at satisfactory levels. An increase in costs for fossil fuels is anticipated in the near future.
“Virši-A” experienced an 8.8% increase in fuel retail sales volume, outpacing the overall retail fuel market growth in Latvia, which was 1.2%.
Diversification into Electricity and Retail
“Virši-A” has successfully diversified its buisness, doubling its number of business clients in the electricity sector. The company has also become the fourth-largest electricity provider for households.Additionally, “Virši-A” store turnover increased by 18.6% last year.
Skulte LNG Terminal Project
Addressing the “Skulte LNG Terminal” project,”Virši” Finance Director Vita Čirjevska stated that the project “ir zaudējis aktualitāti jau pirms 2023.gada,jo tam nebija valsts atbalsts.” She added that “Virši-A” wrote off these investments in 2023, deeming them insignificant.
Financial Performance
Preliminary data indicates that the “Virši-A” group’s turnover for the past year was €380.578 million, a 10.7% increase compared to 2023.However, the group’s profit decreased by 5.3% to €4.825 million, according to the company’s unaudited annual report.
The audited turnover for the “Virši-A” group in 2023 was €343.732 million, an 8.4% decrease compared to 2022, while the group’s profit decreased more than twofold to €5.099 million.
Company Structure
The “Virši-A” group includes the parent company “Virši-A”, SIA “Virši loģistika”, SIA “Virši Renergy”, “Virši Lietuva”, and AS “CRYO Baltic”.
According to publicly available information,the largest shareholders of the company are Jānis Riekstiņš (20.99%),Jānis rušmanis (20.84%), Ruta Plūme (20.81%), Andris Priedītis (12.79%), and Ilgvars Zuzulis (12.79%). The company’s shares are listed on the “Nasdaq Riga” alternative market ”First north”.
Virši-A: Your questions Answered About Growth, Strategy, and Performance
This Q&A provides insights into AS “Virši-A,” a leading energy trader in Latvia. Learn about their strategic focus on alternative fuels, expansion plans, financial performance, and more.
General Details about Virši-A
What is Virši-A?
AS ”virši-A” is a Latvian company focused on the sale of fuel and alternative energy resources. They operate a network of service stations and are involved in electricity supply and the growth of alternative fuel infrastructure. Virši-A is the largest and fastest growing local fuel trader and alternative energy trader with 27 years of