Highlights

• Viva lifted first-half replacement cost EBITDA by 154.0% to $774.4 million, with all three operating businesses reporting growth.

• The Geelong Refining Margin averaged US$21.1 per barrel, up from US$8.2, despite an April fire in the Alkylation unit.

• Net debt fell to $1,720.0 million at 30 June 2026, and the board declared a 7.73 cent interim dividend.

• Viva targets exit from the Coles supply agreement by end-November 2026 and holds an Investor Day on 9 November.

A refinery fire, a Middle East conflict and a shift in how its convenience stores source products all landed in the same half for Viva Energy Group Limited (ASX:VEA). The fuel retailer and refiner still posted its highest underlying first-half earnings, with each business unit growing. Shares were trading at A$2.79 on 23 October 2026, down 3.46%.

Geelong Margins Do the Heavy Lifting

Replacement cost EBITDA for the six months to 30 June 2026 jumped 154.0% to $774.4 million, and replacement cost net profit after tax rose to $371.1 million from $62.6 million. Statutory net profit was $452.0 million. Underlying free cash flow reached $437.2 million, against $41.5 million a year earlier.

Most of the lift came from Energy and Infrastructure, where EBITDA rose to $353.7 million from $18.4 million. The Geelong Refining Margin averaged US$21.1 per barrel, compared with US$8.2, as the Middle East conflict pushed regional margins higher. Crude intake rose 4.5% to 19.7 million barrels.

Commercial and Industrial added $305.4 million of EBITDA, up 28.4%, helped by resources, aviation and marine spot sales and by term supply arrangements put in place before the conflict. Convenience and Mobility earned $138.7 million, up 86.4%, with the Liberty Convenience acquisition contributing for the full period.

The April Fire and the Road Back

A fire broke out in the Alkylation unit at Geelong on 15 April 2026. All personnel were accounted for, and preliminary findings point to a piping failure, with investigation continuing. Refinery availability fell to 81% from 92%. The residue catalytic cracking unit restarted in June, and the company said output should remain above 90% of normal capacity until the Alkylation unit is repaired or replaced, a process that could stretch beyond 2027. An insurance claim is in progress.

Stores, Supply Chains and the Balance Sheet

Convenience sales slipped 3.8% to $803 million as tobacco sales fell 16.8%, although sales excluding tobacco grew 1.3%. The network included 1,268 company-operated stores at June.

Net debt dropped to $1,720.0 million from $2,074.8 million at the end of 2025, putting gearing at 1.5 times. Net capital expenditure was $123.0 million. The board declared a fully franked interim dividend of 7.73 cents per share, or $126.9 million, which is a 70% payout of Convenience and Mobility and Commercial and Industrial earnings. The record date was 7 September and payment on 30 September, with the reinvestment plan active at a 1.5% discount.

Milestones Management Has Flagged

Viva plans to complete its supply chain transformation, and exit the Coles Group product supply agreement, by the end of November 2026. For the rest of the year it intends to open about 20 to 25 new OTR stores, convert 10 to 15 Reddy Express sites and move 25 to 30 sites to unattended self-service.

The company expects refining margins to stay elevated through FY26, with July's margin at US$20.7 per barrel and no major maintenance planned. It expects Commercial and Industrial earnings to moderate in the second half but stay above the same period of 2025. FY26 capital expenditure guidance remains $350 million to $400 million, and an Investor Day is scheduled for 9 November 2026 in Sydney. Viva also said it is engaging with the government on fuel reserve, stockholding and refinery retention policies.