Viva Energy Results - financial year ended 31 Dec 2024

Key points

• Group fuel sales +4% to 16.8 billion litres
• Group EBITDA (RC) +5% to $748.6 million
• Record Commercial & Industrial EBITDA, +5% to $469.9 million

Full summary

Viva Energy Group Limited today announced the Group's financial results for the full year ended 31 December 2024 (FY2024). Group fuel sales increased 4% on a pro forma basis to 16.8 billion litres, while Group EBITDA (RC) grew 5% to $748.6 million. The Group's Commercial & Industrial (C&I) business delivered record EBITDA, up 5% to $469.9 million. Viva Energy completed the acquisition of OTR Group and received regulatory approvals for the Liberty Convenience acquisition. The company is targeting $90 million per annum of synergies over the next 2 years, with $30 million expected to be delivered in FY2025. A group-wide cost reduction program targeting $50 million in savings is also underway. The Convenience & Mobility (C&M) business was impacted by lower demand due to cost-of-living pressures and illicit tobacco trade, as well as high inflation. However, the company expects C&M earnings to improve in the second half of 2025 as synergies and cost reductions are realized. The Energy & Infrastructure (E&I) segment contributed EBITDA (RC) of $94.3 million, up 44% due to lower maintenance and improved operating performance, though regional refining margins declined in the second half. Viva Energy expects C&M and C&I EBITDA (RC) of between $270 million and $330 million in 1H2025, with E&I EBITDA (RC) negatively impacted by a site-wide shutdown at the Geelong Refinery.

Guidance

Viva Energy expects C&M and C&I EBITDA (RC) of between $270 million and $330 million in 1H2025. E&I EBITDA (RC) in 1H2025 has been negatively impacted by approximately A$20 million due to a site-wide shutdown of the Geelong Refinery.

Outlook

Viva Energy expects C&M earnings to improve in 2H2025 as initiatives are accelerated to capture approximately $30 million of synergies (out of the $90 million p.a. target by end-2026) and a group-wide cost reduction program targeting $50 million of savings in the second half. The company continues to see strength in the C&I business in 2025, with further sales growth expected from the OTR Wholesale Fuels business and International Aviation.