Key Highlights

  • Viva Energy Group Limited (ASX:VEA) shares go ex-dividend on 4 September 2026, ahead of the payment on 30 September 2026.
  • The Board declared a fully franked interim Dividend of 7.73 cents per share, representing a 70 per cent payout of C&M and C&I NPAT (RC).
  • Group EBITDA (RC) increased to $774.4 million in the first half of 2026, up from $304.9 million in the first half of 2025.
  • Net Debt reduced to approximately $1.7 billion at 30 June 2026, down from $2,074.8 million at 31 December 2025.

Viva Energy Group Limited, listed on the ASX under the code VEA, will trade ex-dividend from 4 September 2026. The Board determined a fully franked Interim Dividend of 7.73 cents per share, equivalent to $126.9 million in total, representing a 70 per cent Payout Ratio of Convenience & Mobility and Commercial & Industrial NPAT (Replacement Cost), at the top end of the company's target payout range of 50 to 70 per cent. The dividend is payable to shareholders registered as at the Record Date of 7 September 2026, with payment occurring on 30 September 2026.

The company noted that any dividend relating to Refining NPAT (RC) will be assessed separately at year end, within the same 50 to 70 per cent payout policy range. Its Dividend reinvestment Plan remains active, allowing eligible shareholders to reinvest dividends into shares at a 1.5 per cent discount.

First-Half Earnings Performance

For the half year ended 30 June 2026, Viva Energy reported Group EBITDA (RC) of $774.4 million, up from $304.9 million in the first half of 2025, with earnings growth recorded across all Business units. The Energy & Infrastructure segment benefited from elevated regional refining margins during the period, although this was partially offset by the impact of the Alkylation unit fire at the Geelong Refinery.

The Commercial & Industrial business recorded growth in sales volumes together with favourable term Supply arrangements during a period of market volatility. The Convenience & Mobility segment reported improved performance, supported by higher retail fuel sales and increased customer visits.

Balance Sheet and Cash Flow

Net debt decreased to approximately $1.7 billion at 30 June 2026, down from $2,074.8 million at 31 December 2025. The company attributed this reduction to operating Cash Flow generated during the half, partially offset by Capital Expenditure of $123.0 million, net of government receipts. Viva Energy reaffirmed its expectation for capital expenditure in FY2026 of approximately $350 million to $400 million.

Operational Developments at Geelong

The Energy & Infrastructure segment's performance during the half was affected by the Alkylation unit fire at the Geelong Refinery, even as elevated regional refining margins provided an offsetting benefit. In July, the Geelong Refinery achieved a Gross Refining Margin of US$20.7 per barrel, which the company said is expected to remain elevated through the remainder of FY2026.

Viva Energy also confirmed that its supply chain transformation program remains on track for completion by the end of November 2026, a program intended to provide greater control over product ranging, including the reintroduction of private label offerings, along with improved replenishment and supplier terms.

Second-Half Outlook

For the remainder of 2026, Convenience & Mobility plans to open between 20 and 25 new OTR stores, convert 10 to 15 Reddy Express stores to a mix of OTR and Liberty Convenience formats, and convert 25 to 30 sites to an unattended self-service format. The Commercial & Industrial segment is expected to remain steady, supported by diversified sector exposure, although earnings in the second half are expected to moderate as some of the favourable term supply arrangements seen in the first half ease, while still remaining above the second half of 2025.

Viva Energy also noted its continued engagement with the Federal Government on fuel security measures, including Australian Fuel Reserves, an increase to Minimum Stockholding Obligations, and a Refinery Retention program, which the company said could collectively support the development of additional infrastructure at its Geelong Energy Hub.

Conclusion

Viva Energy's first-half 2026 result reflects a period of earnings growth across each of its business segments, with Group EBITDA more than doubling on the back of elevated refining margins and improved retail and commercial trading conditions, even as the Geelong Alkylation unit fire presented an offsetting factor. The fully franked interim dividend of 7.73 cents per share, going ex-dividend on 4 September 2026, was set at the top of the company's payout policy range alongside a reduction in net debt during the period.