1Q2025 Operating Update
| Stock | Viva Energy Group Ltd (VEA.ASX) |
|---|---|
| Release Time | 14 Apr 2025, 9:05 a.m. |
| Price Sensitive | Yes |
Viva Energy Provides 1Q2025 Operating Update
- On track to deliver EBITDA (RC) in line with guidance of $270-$330 million in 1H2025
- Expects $80 million of synergies and cost reductions in 2H2025
- Completed acquisition of remaining 50% of Liberty Convenience
Viva Energy Group Limited (the Company) today provides an operating update for the three months ended 31 March 2025 (1Q2025). Viva Energy remains on track to deliver EBITDA (RC) in line with guidance of between $270 million and $330 million in 1H2025 across its non-refining businesses, Convenience & Mobility (C&M) and Commercial & Industrial (C&I) combined. Earnings in 2H2025 are expected to benefit from the implementation of approximately $80 million of previously announced synergies and cost reduction initiatives. In addition, the acquisition of the remaining 50% interest of Liberty Convenience (LOC) was completed on 31 March 2025. The company expects LOC to contribute between $20 million and $25 million to C&M EBITDA (RC) in FY2025. C&M quarterly fuel sales grew 1.1% versus the same time last year, with retail fuel margins strengthening in March. Convenience sales excluding tobacco grew 0.5% in 1Q2025, with average gross margin of 38.2% broadly in line with 1Q2024. C&I sales declined 6.0% due to adverse weather events affecting key mining markets and reduced sales into lower margin wholesale markets, though lower sales were largely offset by margin growth across most segments. Geelong Refining Margin (GRM) of US$7.9/BBL was marginally above break-even levels, impacted by the site-wide shutdown in January due to a power outage and higher energy costs.
Viva Energy remains on track to deliver EBITDA (RC) in line with guidance of between $270 million and $330 million in 1H2025 across its non-refining businesses. The company expects the acquisition of Liberty Convenience to contribute between $20 million and $25 million to C&M EBITDA (RC) in FY2025.
Earnings in 2H2025 are expected to benefit from the implementation of approximately $80 million of previously announced synergies and cost reduction initiatives. The company is on track to realise $30 million of C&M synergies in 2H2025 ($60 million annualised run-rate at year-end).