Viva Energy (ASX:VEA) Reports Record H1 Earnings as Fuel Prices Rise

Sonal Goyal

15 September 2026 11:43 AM AEST

Viva Energy (ASX:VEA) Reports Record H1 Earnings as Fuel Prices Rise

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Viva Energy Group (ASX:VEA) enters the second half of 2026 following a record first-half Earnings result, supported by favourable refining margins and improved performance across its retail and commercial businesses.

The operating environment has also shifted during September, with Crude Oil prices moving above USD 100 per barrel and average Australian retail petrol and diesel prices increasing across most monitored locations.

Viva Energy operates the Geelong Refinery in Victoria alongside a nationwide fuel, convenience and commercial distribution network, giving the group exposure to refining conditions as well as domestic fuel demand.

Record First Half

Viva Energy reported Group EBITDA on a replacement-cost basis of AUD 774 million for the six months ended 30 June 2026, compared with AUD 305 million in the prior corresponding period.

Replacement-cost net profit after tax increased to AUD 371 million.

Underlying free Cash Flow reached AUD 449 million, while operating free cash flow was AUD 604 million.

The stronger cash generation contributed to a reduction in net Debt to AUD 1.7 billion at 30 June 2026, from AUD 2.1 billion at the end of 2025.

Gearing declined to approximately 1.5 times net debt to EBITDA from around 3 times at the end of 2025.

Interim Dividend

Viva Energy declared a fully franked Interim Dividend of 7.73 cents per share. The dividend is scheduled for payment on 30 September 2026.

Refining Earnings

Energy & Infrastructure generated EBITDA of AUD 354 million during the first half of 2026.

The Geelong Refinery benefited from stronger regional refining conditions, with its gross refining Margin averaging approximately USD 21.1 per barrel during the half.

Refining intake totalled approximately 19.7 million barrels.

The refining result was achieved despite operational disruption following a fire in the Alkylation unit on 15 April 2026.

The incident affected refinery production during the quarter, although other major processing units were subsequently returned to operation.

Commercial Operations

Viva Energy's Commercial & Industrial division generated EBITDA of approximately AUD 305 million during H1 2026, up from the prior corresponding period.

Fuel sales volumes were approximately 5.9 billion litres.

The division supplies fuel and other energy products to customers across sectors including resources, aviation, marine, transport, agriculture and industrial operations.

Viva Energy maintained customer Supply during a period of international fuel-market and supply-chain disruption.

Convenience Business

Convenience & Mobility EBITDA increased to AUD 139 million from AUD 74 million in the prior corresponding period.

Retail fuel volumes increased approximately 2%, with diesel contributing to the increase.

Convenience sales excluding tobacco increased 1.3%.

The company also reported 139 million customer visits during the half, compared with 74 million in the prior corresponding period, reflecting changes to the expanded retail network following earlier acquisitions and integration activity.

Viva Energy continues to operate its fuel and convenience network through brands including Shell, OTR, Reddy Express and Liberty.

Higher Fuel Prices

Global oil markets have experienced significant Volatility during September 2026.

Brent crude has traded above USD 100 per barrel, while West Texas Intermediate has also moved above USD 100 amid continuing Middle East supply concerns.

Higher crude and refined-product benchmark prices can feed through to Australian wholesale and retail fuel prices.

Australia's fuel regulator reported that average retail petrol and diesel prices increased across most locations in the week to 9 September 2026, influenced by movements in international refined-fuel benchmarks as Middle East tensions intensified.

Changes in international benchmark prices generally take time to move through Australia's fuel supply chain.

Balance Sheet and Capital

Viva Energy reported net Capital expenditure of AUD 123 million during the first half of 2026.

The company maintained FY2026 net Capital Expenditure guidance of approximately AUD 350 million to AUD 400 million.

Cash generation and inventory reductions contributed to the decline in net debt during the half.

The reduced gearing follows a period of significant Investment associated with refinery projects, acquisitions and the integration of Viva Energy's expanded convenience-store network.

Operating Environment

Viva Energy (ASX:VEA) enters the second half of 2026 with stronger first-half earnings and lower net debt but also with ongoing operational work at the Geelong Refinery.

Regional refining margins, international crude and product prices, domestic fuel volumes and progress on the Alkylation unit will influence the Energy & Infrastructure business.

Performance across the Convenience & Mobility and Commercial & Industrial divisions will also depend on fuel demand, retail activity and the continuing integration of the group's expanded network.

With global crude prices above USD 100 and Australian petrol and diesel prices moving higher across many locations, fuel-market conditions remain an important part of Viva Energy's operating backdrop.

FAQs

Q: What EBITDA did Viva Energy report for H1 2026?

A: Viva Energy reported Group replacement-cost EBITDA of AUD 774 million, compared with AUD 305 million in the prior corresponding period.

Q: Is the Geelong Refinery operating normally after the April 2026 fire?

A: Production has returned to more than 90% of normal capacity, but the Alkylation unit remains offline and is currently expected to remain out of operation throughout 2027.

Q: How much is Viva Energy's H1 2026 interim dividend?

A: Viva Energy declared a fully franked interim dividend of 7.73 cents per share, scheduled for payment on 30 September 2026.

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