Viva Energy Group Limited (ASX: VEA) has posted strong full-year results for 2024, with Group EBITDA (RC) rising 5% to $748.6 million, driven by solid growth in Commercial & Industrial (C&I) fuel sales and improved refinery performance. However, cost-of-living pressures and illicit tobacco trade weighed on convenience store sales, while regional refining margins softened in the second half.
Key Financial Highlights
- Fuel Sales: Up 4% to 16.8 billion litres
- Group EBITDA (RC): $748.6M (+5%)
- C&I EBITDA: $469.9M (+5%) – A record performance
- Refinery EBITDA: $94.3M (+44%) amid higher crude intake
- NPAT (RC): $254.2M, down 20% due to lower refining margins and retail softness
- Dividend: 10.6 cents per share, down from 15.6c last year
CEO Insights: Navigating Headwinds and Unlocking Synergies
Viva Energy CEO Scott Wyatt acknowledged the challenges of 2024 but remained optimistic:
“Despite cost pressures and a tougher retail environment, we delivered strong EBITDA growth, particularly in Commercial fuels. The integration of OTR and our retail transformation will drive efficiencies, with $90M in synergies expected by 2026.”
Viva is accelerating its cost reduction program, targeting $50M in savings in 2H2025, alongside $30M in C&M synergies this year.
Convenience & Mobility: Transformation Underway
- Fuel Sales: 5.06 billion litres (+0.5%)
- Convenience & QSR Sales: Ex-tobacco revenue up 2%, but overall sales down 4%
- OTR Store Conversions: First four Express stores converted, delivering 30-60% gross margin uplift in non-tobacco sales.
- Expansion Plans: 40-60 new OTR sites in 2025, scaling to 100 conversions per year.
C&I: Growth Continues
Viva’s Commercial segment continues to be a standout, with fuel volumes up 5%, driven by Aviation, Resources, Agriculture, and Defence contracts.
Refining & Infrastructure: Resilience Amid Margin Pressures
- Geelong Refinery Intake: 40.1MBBL (+27%) with 95% availability
- Geelong Refining Margin: US$8.7/BBL (down from US$9.8)
- Federal Support: Received $25M in Fuel Security Payments amid weak refining margins
Outlook: Efficiency Gains, Retail Rebuild, and Growth Pipeline
Viva expects earnings growth in 2H2025, driven by cost reductions, OTR integrations, and improved convenience offerings. The Liberty Convenience acquisition, expected to close by March, will further enhance retail capabilities.
Wyatt remains confident:
“While market conditions remain mixed, our transformation efforts will unlock significant value, setting up Viva for long-term success.”
Viva will focus on streamlining operations, enhancing retail performance, and capitalising on its strong position in commercial fuels to navigate 2025 and beyond.
