Highlights

  • Viva Energy Group reported an expected 1H26 Group EBITDA (RC) outcome of approximately $770 million to $780 million, compared with $305 million in 1H25.
  • The company benefited from improved regional refining margins, with Geelong Refining Margin increasing to US$21.1 per barrel during 1H26.
  • Commercial & Industrial fuel volumes increased 1.0% year-on-year, supported by resource sector demand and marine sales.
  • Convenience & Mobility fuel volumes grew 2.4%, supported by improved fuel availability, competitive pricing and higher customer visits.
  • Net debt reduced to approximately $1.7 billion at 30 June 2026 from $2.1 billion at the end of December 2025.

Viva Energy Group Limited (ASX:VEA) has released its trading update and unaudited financial results for the six months ended 30 June 2026 (1H26), highlighting improved earnings performance supported by favourable refining conditions, continued commercial activity and progress across its convenience network transformation.

The update comes as Viva Energy shares traded at AUD 2.52, rising 3.07% during the morning session on 28 July 2026. The stock has gained 14.84% over the past year, reflecting continued investor attention towards the company’s operational performance, earnings improvement and strategic initiatives across its energy and convenience businesses.

Viva Energy Reports Significant Earnings Improvement in 1H26

For the first half of FY26, Viva Energy expects Group EBITDA (RC) to be approximately $770 million to $780 million, representing a substantial improvement compared with the $305 million recorded in the corresponding period of FY25.

The company attributed the improved financial performance to several operating factors, including higher regional refining margins, increased commercial activity, favourable supply and hedging arrangements, and improved retail fuel performance.

Viva Energy’s CEO noted that the first half of the year was influenced by geopolitical events that disrupted global energy markets and traditional supply chains. Despite these conditions, the company worked with governments, customers and suppliers to maintain production and fuel availability by leveraging its integrated supply chain capabilities.

The company highlighted that domestic refining continued to play an important role in supporting fuel security, while improved refining market conditions provided a favourable contribution to earnings.

Company Overview and Integrated Energy Operations

Viva Energy is an Australian convenience retailer, commercial services provider and energy infrastructure company with more than 120 years of operating history.

The company operates a large retail convenience and fuel network across Australia, with more than 1,280 stores and fuel supply arrangements covering nearly 1,550 service stations. Viva Energy also owns and operates the Geelong Refinery in Victoria and manages businesses across bulk fuels, aviation, bitumen, marine, chemicals, polymers and lubricants.

The company’s operations are supported by more than 25 terminals and 98 airports and airfields across Australia, creating an integrated network across fuel supply, refining, distribution and retail channels.

Energy & Infrastructure Segment Benefits From Higher Refining Margins

The Energy & Infrastructure (E&I) division was a key contributor to Viva Energy’s improved 1H26 performance.

The company reported that disruptions to oil flows from the Middle East affected refined product availability, contributing to elevated regional refining margins. As a result, the Geelong Refinery recorded a Geelong Refining Margin (GRM) of US$21.1 per barrel during 1H26, compared with US$8.2 per barrel in 1H25.

Refining intake also increased during the period, reaching 19.7 million barrels compared with 18.8 million barrels in the prior corresponding period.

The company noted that production at the Geelong Refinery was impacted by a fire in the Alkylation unit on 15 April 2026. However, following the restart of the Residue Catalytic Cracking Unit and associated facilities in June, production returned to more than 90% of normal capacity.

E&I EBITDA (RC) is expected to be approximately $353 million for 1H26.

Viva Energy also stated that regional refining margins are expected to remain above long-term averages through the remainder of FY26.

Commercial & Industrial Business Maintains Growth Momentum

The Commercial & Industrial (C&I) division delivered continued progress during the half year, supported by demand from key customer sectors.

C&I fuel sales volumes increased 1.0% compared with 1H25, supported by continued activity in the resources sector and higher marine spot sales.

The company reported that lower sales volumes in the second quarter compared with the previous corresponding period were largely due to demand being brought forward into the first quarter, along with aviation fuel disruption associated with geopolitical events in the Middle East.

The division also benefited from favourable hedging and term supply arrangements established before the market volatility. However, Viva Energy expects these arrangements to provide less support during the second half of FY26.

C&I EBITDA (RC) is expected to be approximately $305 million.

Convenience & Mobility Performance Improves Through Retail Growth

Viva Energy’s Convenience & Mobility (C&M) division continued to benefit from improving retail activity and customer engagement.

Fuel sales volumes in the segment increased 2.4% during 1H26 compared with the prior corresponding period. The company attributed this improvement to better fuel availability and competitive pricing across its retail network.

Convenience sales excluding tobacco increased 1.3% year-on-year, supported by higher customer visits linked to increased fuel sales and the expansion of third-party delivery services through Uber Eats and DoorDash.

Tobacco sales declined 16.8% compared with the previous corresponding period but remained stable compared with 2H25.

Convenience & Mobility EBITDA (RC) is expected to be approximately $138 million.

The company also continued integrating the OTR and Reddy Express networks. During 2Q26, the FlyBuys loyalty program was expanded to include the OTR branded network, creating a consistent loyalty offering across the Shell branded company-owned network.

Network Expansion and Store Transformation Continue

Viva Energy continued progressing its convenience network development strategy during 1H26.

New convenience supply distribution centres were established in Victoria and Queensland, while the NSW facility is expected to become operational shortly. The company remains on track to complete the rollout and exit the Coles PSA arrangement by the end of FY26.

The company updated its network development plans to align investment with current project delivery expectations and focus on opportunities with attractive returns.

During FY26, Viva Energy expects to open approximately 20 to 25 new OTR stores and convert 10 to 15 Reddy Express stores into a combination of OTR and Liberty Convenience formats.

Following successful trials, the company also expects to convert approximately 25 to 30 stores into an unattended self-service format.

Balance Sheet Improvement Supports Financial Position

Alongside improved earnings, Viva Energy reported progress in reducing its debt position.

Net debt at 30 June 2026 was approximately $1.7 billion, down from $2.1 billion at 31 December 2025. The reduction was primarily driven by improved conversion of earnings into cash.

The company’s improved cash generation reflects the contribution from higher earnings during the period, supported by refining performance, commercial activity and retail operations.

What This Means for Investors

Viva Energy’s 1H26 trading update highlights improved earnings performance across multiple operating areas, with refining margins, commercial activity and convenience sales contributing to the company’s financial improvement.

The expected EBITDA outcome of $770 million to $780 million represents a notable increase from the previous corresponding period, while debt reduction indicates progress in strengthening financial flexibility.

The company continues to advance its retail network transformation through OTR expansion, Reddy Express conversions and loyalty program integration. At the same time, Viva Energy remains focused on maintaining fuel supply reliability through its integrated infrastructure network.

Investors will continue monitoring the company’s execution through the remainder of FY26, including refining market conditions, commercial demand trends and progress across its convenience transformation initiatives.