Key Takeaways

  • Viva Energy Group expects 1H26 underlying replacement-cost EBITDA of approximately $770 million to $780 million, significantly higher than the previous corresponding period.
  • Strong regional refining conditions lifted the Geelong Refining Margin to US$21.1 per barrel, supported by global supply disruptions and tighter refining capacity.
  • Commercial & Industrial fuel volumes increased 1.0% year-on-year, supported by resources activity and marine demand.
  • Convenience & Mobility fuel volumes rose 2.4%, with improved retail fuel sales and higher customer visits supporting performance.
  • Net debt reduced to approximately $1.7 billion at 30 June 2026, down from $2.1 billion at the end of December 2025.

Viva Energy Group Limited (ASX:VEA) has provided a positive trading update for the six months ended 30 June 2026, highlighting a substantial improvement in earnings across its energy, commercial and convenience operations.

The company expects 1H26 Group EBITDA on a replacement-cost basis to be approximately $770 million to $780 million, compared with $305 million in the first half of the previous year.

The improved result reflects stronger refining conditions, continued strength in commercial fuel operations and improving performance across the company’s convenience network.

At the time of writing on 28 July 2026, Viva Energy Group Ltd (ASX: VEA) shares are trading at $2.58.

Energy & Infrastructure Benefits from Higher Refining Margins

Viva Energy’s Energy & Infrastructure division was the largest contributor to earnings growth during the period, benefiting from elevated regional refining margins.

The company reported a Geelong Refining Margin (GRM) of US$21.1 per barrel in 1H26, compared with US$8.2 per barrel in the previous corresponding period.

The stronger refining environment was supported by disruptions across global energy markets, which contributed to reduced regional supply availability and improved refining economics.

Operations at the Geelong Refinery were affected by an alkylation unit fire on 15 April 2026. Following repair activities, the residue catalytic cracking unit and associated facilities restarted in June, allowing production levels to recover to more than 90% of normal capacity.

Viva expects regional refining margins to remain above long-term averages through the remainder of FY26.

The Energy & Infrastructure division is expected to deliver approximately $353 million in EBITDA for 1H26.

Commercial & Industrial Business Maintains Growth

The Commercial & Industrial (C&I) segment continued to demonstrate resilience, supported by ongoing demand from resources customers and marine operations.

Fuel sales volumes increased 1.0% compared with 1H25 to 5,865 megalitres.

The company benefited from favourable supply arrangements and hedging positions established before increased volatility in global energy markets.

While second-quarter volumes were impacted by timing effects and reduced aviation fuel demand associated with geopolitical events, Viva maintained strong commercial performance.

The C&I division is expected to contribute approximately $305 million in EBITDA for 1H26.

Convenience & Mobility Shows Improving Retail Trends

Viva Energy’s Convenience & Mobility segment recorded growth in fuel volumes and customer activity during the first half.

Fuel sales volumes increased 2.4% year-on-year to 2,625 megalitres, supported by competitive fuel pricing, improved product availability and stronger customer engagement across the retail network.

Convenience sales excluding tobacco increased 1.3%, supported by higher customer visits and expanded delivery partnerships.

The company continued integrating the OTR and Reddy Express networks, including extending the FlyBuys loyalty program across the OTR branded network.

Viva expects Convenience & Mobility EBITDA to reach approximately $138 million for 1H26.

Debt Reduction Strengthens Financial Position

Viva Energy continued reducing its debt position during the first half, supported by improved earnings and cash conversion.

Net debt at 30 June 2026 was approximately $1.7 billion, compared with $2.1 billion at 31 December 2025.

The reduction provides additional financial flexibility as the company continues investing in its retail network, energy infrastructure and operational capabilities.

Network Expansion and Strategic Initiatives

Viva Energy continues progressing its convenience network transformation following the integration of OTR and Liberty Convenience operations.

The company operates a large Australian fuel and convenience network, supported by refining, bulk fuels, aviation, marine, chemicals and lubricants businesses.

During FY26, Viva expects to:

  • Open approximately 20 to 25 new OTR stores.
  • Convert 10 to 15 Reddy Express stores into OTR and Liberty Convenience formats.
  • Convert 25 to 30 stores into unattended self-service formats.

The company is also progressing sustainable aviation fuel infrastructure initiatives and expanding commercial partnerships across its energy platform.

Outlook

Viva Energy enters the second half of FY26 with improved operational momentum across its core business segments.

The company’s earnings recovery has been supported by favourable refining conditions, resilient commercial fuel demand and stronger retail fuel performance.

Key areas investors will continue monitoring include refining margin sustainability, progress at the Geelong Refinery, convenience network integration and ongoing balance sheet improvements.