Looming Jet Fuel Shortages?

[Saab34]

It was noticeable at those recent press events with the Viva boss, and the media kept trying to get a doomsday quote from him, but he kept referring to the continued shipments he was securing from North/South America etc. They didn’t like that and kept asking stupid questions ‘so when are we going to run out of fuel again’.

I think the press have tried to push a doomsday approach sort of vibe while behind the scenes the major players have and are continuing to have success securing supplies (albeit being underwritten by the Government).

 

[markis10]

Viva doesn’t need an underwriting, that’s a con job.

 

[MEL_Traveller]

Viva doesn’t need an underwriting, that’s a con job.

My understanding is that the underwriting guarantees against losses… for example the company buys when the price is high, but there’s a sudden drop in the price of oil, etc.

A risk averse company may choose not to purchase when the price is ‘too high’ for fear of losses down the track.

Why would that not be reasonable in Viva’s case?

 

[markis10]

Why would that not be reasonable in Viva’s case?

Because the largest shareholder of Viva happens to be the largest trader of petroleum products in the world! Something of a conflict of interest in my books. As I alluded to earlier, it’s also why we don’t seem to have any issues with getting stock!

 

[Saab34]

Because the largest shareholder of Viva happens to be the largest trader of petroleum products in the world! Something of a conflict of interest in my books. As I alluded to earlier, it’s also why we don’t seem to have any issues with getting stock!

Australia will probably be the first on the supply list to Viva’s owners, just bump up the margin a bit, who will know, Aussies will pay for it. Win Win for Viva and Co.

They will need to slap a higher margin on imports to cover the profit dip in the Geelong plant which is expected to have a material impact on guidance.

 

[MEL_Traveller]

Because the largest shareholder of Viva happens to be the largest trader of petroleum products in the world! Something of a conflict of interest in my books. As I alluded to earlier, it’s also why we don’t seem to have any issues with getting stock!

Unless there’s proof of a conflict of interest, I’m still not seeing the issue?