THE VIVA STORY
Proudly changing the nature of the South African fuel industry, one service station at a time.
Driven by excellence.
Viva is committed to deliver a service station concept based on true partnership principles that will revolutionise the industry in a personal and meaningful way to ultimately add real business value to its customers and stakeholders.
As a wholly owned subsidiary of Royale Energy Limited, Viva embodies the same core values of the group which are:
The Group is driven by:
- Commitment to excellent service
- Acknowledgment and recognition of superior performance
- Keeping every promise
- Dedication to achieving team goals
- Doing things right, first time, every time
The Viva Brand:
The Viva brand has been purpose-designed to release the essence of the true meaning of the word “Viva” which is perpetuity, success and elation. The Viva brand has been carefully crafted to ensure an attractive eye-catching design with mass appeal that is easy yet cost effective to implement.
The Viva service station business model focuses on three specific areas:
New Site Developments:
Suitable sites that have been earmarked for flagship filling stations are carefully selected following an extensive feasibility study and market research process. New site developments that are compliant with the necessary criteria will be built according to Viva’s flagship blueprint. The development costs associated with a Viva flagship filling station is approximately 30% less than that of any major brand development.
Re-branding Existing Sites:
Viva has had great success with re-branding existing filling stations to Viva. This process is applicable to branded sites that are no longer contractually bound by an Oil Company branding like Shell, Engen, BP etc. as well as to non-branded or “white” sites in urban and rural areas. The minimum requirement for re-branding a filling station is an average pump volume in excess of 120 000 litres per month.
The Viva rebate structure is designed to significantly enhance the profit margin of a filling station. This coupled with full owner-control of the filling station makes Viva an attractive company to partner with. Viva’s agreement gives the filling station owner the freedom to operate their filling station businesses according to their unique business plans. The owner operates with the autonomy of a “white site” while enjoying the benefits of being a part of a national brand. The Viva model encourages full owner control and favours equipment and asset ownership, with the exception of all Viva signage.
Viva’s Progress and Future ‘Roll Out’ Plan
The Viva network is constantly expanding. Viva presently has 34 branded filling stations in its network and envisages adding an additional 12 sites to its network in 2014.
The company’s growth targets for the next 2 years include growing the network by 62 sites (28 added in 2015 and 34 added in 2016). By end of the financial year February 2016 Viva aims to have a network of 118 filling stations.
The Royale Energy Ltd Group:
Viva is 100% owned by Royale Energy Limited, the largest privately owned oil company in South Africa boasting a 71% BBBEE Level 2 status. Royale as well as Viva has wholesale oil company licenses from the Department of Energy. In terms of this licence Royale entered into an evergreen supply agreement with Sasol Oil Limited, who is currently supplying the bulk of Royale and Viva’s fuel supply.
A hands-on approach by a compact management structure that believes in expeditious decision-making, rapid problem-solving, honesty, loyalty and integrity has swiftly transformed Royale Energy Limited into a force to be reckoned with in the industry. Royale Energy was registered in 2003, within a mere 48 month period the business expanded from uplifting 6 million litres of petrol, diesel and paraffin per month to where it is currently, uplifting over 30 million litres per month. In the 2014 financial year Royale Energy’s revenue was calculated at almost ZAR 4 billion.
Royale Energy’s impressive business performance, in a competitive market that includes longstanding multinationals, is due largely to a fleet of well-maintained and managed trucks and tankers.
Equipped with the latest technology for optimum service delivery, resource manageability and profitability, the fleet allows Royale to purchase fuel products direct from the supplier and distribute to the commercial as well as retail sectors at competitive prices and as demand requires.
Already well-established in the commercial arena, distributing to all end-user markets, from storekeepers, farming communities, transporters and the mining industry, Royale Energy’s resourceful management also has its sights set on making an impact in the retail market. Royale’s fleet of 19 trucks currently uplifts about 22 million litres of fuel from Natref, Secunda and Watloo and distributes it through well-planned routes.
In accordance with the company’s managed growth policy, arrangements are being finalised to uplift petroleum product nationally with further storage depots in the pipeline, to ensure constant supply and to further streamline operations. Royale currently operates two depots conveniently located in Hammanskraal and Polokwane and supplies the bulk of Viva’s fuel requirement.
Viva’s board of directors are guided by a number of business principles including strong corporate and business governance. The company has developed policies and regulations to achieve its objectives and has positioned itself to attract investors of similar thinking whilst owning, managing and operating assets. Where control is not possible, the board seeks effective asset management participation.
Eyabantu Petroleum is owned by a consortium of business men and women and a broad based company: Litema Broad Based (Pty) Ltd. The BBBEE Company which own 15% of Eyabantu Petroleum has community trusts made up of the following organisations:
· Nkosi Johnson Aids Foundation
· Mawaka Woman Investments
· Rural Education Access Program
· The Fort Hare Foundation
· Touch Community Network
· Schmidtdrift II Claimants Trust
· New Enterprise Development (Pty) Ltd
Collectively the above broad-based organisations benefit more than 20 000 (twenty thousand) people. The Eyabantu shareholding combined with the Pyutaz Trust owned by Pat Mdoda family at 71.06% therefore positions Royale Energy as a true empowerment company. Royale Energy is a proud level two contributor.
Royale Group Structure:
Brief Resume of Directors and Management:
Stephan Nothnagel – Chief Executive Officer
Stephan Nothnagel is a South African businessman and Chartered Accountant. He has more than 20 years’ experience in the petroleum industry. His ambitious nature resulted in him being appointed as the youngest Admin Manager in the petrochemical industry. He was later promoted to Credit Management Level where he managed a debtor’s book of over R600m. His strengths lie in business planning and analysis management and he took responsibility for establishing many profitable business units throughout Engen. He was appointed Financial Director at Afric Oil Petroleum before joining Royale Energy.
Sindi Mlungwana – Chief Financial Officer
Sindi is a chartered accountant. Before joining Royale Energy, she was an Equity Analyst responsible for financial analysis and valuations of listed entities on the JSE Mid and Small Caps sector. She has experience in treasury accounting and risk management. She trained as an accountant with Deloitte and Touché and later moved to Gobodo Incorporated.
Qwie Kruger – General Manager Viva Oil
Qwie is a specialist service station analyst and has been in the retail sector of the Oil Industry for over 16 years. He has conducted more than 300 feasibility studies on potential service station properties and has been involved with the development of more than 90 service stations. All the Viva filling stations were developed by his team.
The Viva Retail Development Team:
Lezanne Marais Retail Developer
After successfully finishing her honours degree in International Trade and Marketing, Lezanne joined Royale Energy as Customer Liaison Officer. Her responsibilities included Sasol orders and agent administration. In April 2011 she was appointed as a business representative in Viva were she assumed responsibility for the dealer network administration that included fuel deliveries, uniform orders and attending to any administration problems. In June 2012 Lezanne was promoted to Retail Developer where she focusses predominantly on branding existing and new filling station developments to Viva. Her portfolio includes all marketing initiatives as well as operational activities.
Over the years she has been part of the journey that has seen Viva grow from a mere 6 sites to a growing network with 34 filling station sites at present.
Casper Coetzee Business Representative
Casper joined the Viva team in October 2013 as a business representative. His portfolio includes the wellbeing of the dealer network regarding and his role entails providing assistance to the network in terms of fuel deliveries, uniforms, site inspection reports, administration activities as well as any problem-solving interventions needed.
For a brief Resume of
Directors and Management of Royale Energy please visit the website at:www.royale-energy.co.za