Viva Energy (ASX:VEA) Posts Record First-Half EBITDA of $774.4 Million, Up 154%

Sonal Goyal

25 August 2026 01:19 PM AEST

Viva Energy (ASX:VEA) Posts Record First-Half EBITDA of $774.4 Million, Up 154%

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Key Highlights

Group EBITDA on a replacement cost basis rose to $774.4 million in 1H26, up from $304.9 million in 1H25, with Earnings growth recorded across all Business units.
Energy & Infrastructure EBITDA increased to $353.7 million from $18.4 million, supported by a Geelong Refining Margin of US$21.1 per barrel, up from US$8.2 per barrel, though operations were affected by an incident at the refinery in April 2026.
Net Debt was reduced to approximately $1.7 billion at 30 June 2026, down from $2,074.8 million at 31 December 2025, supported by positive operating cash flow.
The Board declared a fully franked Interim Dividend of 7.73 cents per share, representing a 70% payout of Convenience & Mobility and Commercial & Industrial NPAT, at the top end of the company's target payout range.

Group Earnings More Than Double

Viva Energy Group Limited (ASX:VEA) announced its financial results for the half year ended 30 June 2026, reporting Group EBITDA on a replacement cost basis of $774.4 million, up from $304.9 million in the prior corresponding period, with earnings growth recorded across all business units. Shares in Viva Energy traded at $2.84 on the ASX at the time of the announcement, down 0.35 percent, or $0.01, on the day. Group EBIT on a replacement cost basis increased to $616.1 million from $176.0 million, while net profit after tax on the same basis rose to $371.1 million from $62.6 million.

Energy & Infrastructure Benefits from Refining Margins

The Energy & Infrastructure segment recorded EBITDA of $353.7 million, materially higher than the $18.4 million reported in the prior corresponding period, largely reflecting strong regional refining margins resulting from disruptions to crude and product flows from the Middle East. The Geelong Refining Margin averaged US$21.1 per barrel for the period on crude intake of 19.7 million barrels, up from US$8.2 per barrel and 18.8 million barrels in 1H25. The company noted that operations at the Geelong Refinery were impacted by an incident on 15 April 2026, which reduced the refining margin and crude intake during the second quarter, though operations were safely restored with the relevant units restarting in June.

Convenience & Mobility Growth

Convenience & Mobility delivered 1H26 EBITDA of $138.7 million, up from $74.4 million in the prior corresponding period, supported by improved fuel sales and margins and a full period contribution from the Liberty Convenience Acquisition completed on 31 March 2025. Fuel sales volumes increased 2.0% against the prior period, supported by greater retail fuel availability and competitive pricing. Ex-tobacco convenience sales were 1.3% higher, supported by increased customer visits and expansion of the third-party delivery offer, though tobacco sales declined 16.8% on the same period last year. Shop margins were 37.7% for the half, broadly in line with the prior period, with the underlying improvement in shop margins excluding tobacco and wastage rising to 42.5% from 41.2%.

Commercial & Industrial Performance

The Commercial & Industrial business delivered EBITDA of $305.4 million, up 28.4% compared with the prior corresponding period, reflecting structural growth across the business and favourable term Supply arrangements that were in place prior to the Middle East conflict. Sales volumes increased 1.0%, driven by Demand from the resource and aviation sectors and higher marine spot sales, though aviation fuel volumes were affected by disruptions arising from the Middle East conflict. The company said these favourable supply arrangement benefits are expected to moderate in the second half of the year.

Balance Sheet and Capital Management

Net debt decreased from $2,074.8 million at 31 December 2025 to $1,720.0 million at 30 June 2026, reflecting strong Operating Cash Flow generated during the half, partially offset by Capital Expenditure of $123.0 million net of government receipts. The company reaffirmed FY26 capital expenditure guidance of approximately $350 million to $400 million. The Board declared a fully franked interim dividend of 7.73 cents per share, equivalent to $126.9 million, representing a 70% Payout Ratio of Convenience & Mobility and Commercial & Industrial net profit after tax, at the top end of the company's target payout range of 50% to 70%. The dividend is payable on 30 September 2026 to shareholders on the register at the Record Date of 7 September 2026.

Management Commentary

Viva Energy CEO Scott Wyatt said the company delivered its highest underlying first-half earnings with all business units reporting significant growth, reflecting a substantially improved refining margin environment alongside improving retail sales growth and continuing strength in the company's commercial businesses. He noted that strong cash conversion strengthened the company's balance sheet, with net debt reducing from $2.1 billion at the end of 2025 to $1.7 billion at 30 June 2026. Mr Wyatt said the first half was shaped by geopolitical events causing significant disruption across global energy markets, and that the company worked closely with governments, customers and suppliers to maintain production and supply throughout the period.

Outlook

The company said it enters the second half with a strong Balance Sheet and a clear focus on disciplined execution. Convenience & Mobility plans to open approximately 20 to 25 new OTR stores and convert 10 to 15 Reddy Express stores during the remainder of 2026, with the completion of its supply chain transformation program remaining on track for the end of November 2026. Commercial & Industrial earnings in the second half are expected to moderate from first-half levels as favourable term supply arrangements ease, though earnings are still expected to be higher than the second half of 2025. In Energy & Infrastructure, the Geelong Refinery achieved a refining margin of US$20.7 per barrel in July, and the company continues to engage with the Federal Government on fuel security measures including Australian Fuel Reserves, increased Minimum Stockholding Obligations, and a Refinery Retention program.

Conclusion

Viva Energy delivered a substantial increase in first-half earnings, with Group EBITDA more than doubling on the back of elevated refining margins at its Geelong Refinery, alongside growth in its Convenience & Mobility and Commercial & Industrial businesses. The company's net debt position improved materially during the half, supporting an interim dividend at the top end of its target payout range. While the company expects Commercial & Industrial earnings to moderate in the second half as favourable term supply arrangements ease, refining margins are expected to remain supportive through the remainder of FY2026, with the Geelong Refinery's July performance continuing the trend seen during the first half.

FAQs

Q: What was Viva Energy's Group EBITDA for 1H26?

A: Group EBITDA on a replacement cost basis was $774.4 million, up from $304.9 million in the prior corresponding period, with growth recorded across all business units.

Q: Why did Viva Energy's Energy & Infrastructure earnings increase so sharply?

A: The increase was largely driven by elevated Geelong Refining Margins, which averaged US$21.1 per barrel compared with US$8.2 per barrel in the prior period, as disruptions to Middle East crude and product flows supported regional refining margins.

Q: Did Viva Energy's refinery experience any operational issues in 1H26?

A: Yes, an incident at the Geelong Refinery on 15 April 2026 reduced refining margin and crude intake during the second quarter, though operations were safely restored with the relevant units restarting in June.

Q: What dividend did Viva Energy declare for 1H26?

A: The Board declared a fully franked interim dividend of 7.73 cents per share, representing a 70% payout of Convenience & Mobility and Commercial & Industrial net profit after tax, at the top end of the company's target payout range of 50% to 70%.

Q: How did Viva Energy's net debt change during the half?

A: Net debt decreased from $2,074.8 million at 31 December 2025 to $1,720.0 million at 30 June 2026, reflecting strong operating cash flow generated during the period.

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