Highlights

  • Viva Energy lifts its Geelong refining Margin to USD 21.4 per barrel in the September quarter.
  • The group records AUD 407 million in convenience sales, representing growth of 3.8% year on year.
  • Crude intake rises to 9.1 million barrels as refinery recovery work continues after April’s fire.
  • The company pays a fully franked Interim Dividend of 7.73 cents per share in September.

Viva Energy Group Limited (ASX:VEA) entered the final quarter of 2026 with a sharply higher Geelong refining margin and growing convenience sales, even as repairs following April’s refinery fire continued. Its September-quarter update, released on 22 October, showed a refining margin of USD 21.4 per barrel, compared with USD 10.2 a year earlier, alongside broadly stable group fuel volumes.

Geelong Margin Rebounds as Crude Intake Rises

The Geelong refinery processed 9.1 million barrels of crude during the quarter, up from 8.7 million barrels in the comparison period. The reported refining margin more than doubled, while the margin excluding one-off hedging losses reached USD 23.4 per barrel. Recovery work at the Residue Catalytic Cracking Unit continued after the April 2026 fire. However, the damaged Alkylation unit is expected to remain offline throughout 2027, with repair or replacement Options still under assessment.

Convenience Growth Meets Margin Pressure

Across the group, fuel sales were broadly unchanged at 4.205 billion litres. Convenience sales increased 3.8% to AUD 407 million, but convenience gross margin declined by 2.0 percentage points to 37.9%. The company linked the decline to stock adjustments following a supply-chain rollout. Its convenience operations include OTR, Reddy Express and Liberty Convenience, while the broader Business also distributes Shell-branded fuel and serves commercial and industrial customers.

Distribution Changes Extend Beyond the Refinery

Viva is preparing to exit its Coles Product Supply Agreement by late November 2026 following completion of a distribution Facility in Western Australia. The planned transition sits alongside its refining and convenience operations as the company continues developing its own fuel distribution infrastructure. Meanwhile, fluctuations in crude prices during the September quarter affected retail margins before pump prices adjusted.

First-Half Earnings Support the Dividend

The September update followed first-half results released on 25 August 2026. Replacement-cost EBITDA reached AUD 774.4 million, up 154%, while net profit after tax rose 493% to AUD 371.1 million. Net Debt declined from AUD 2.1 billion at the end of 2025 to AUD 1.7 billion at 30 June 2026. A fully franked interim dividend of 7.73 cents per share was paid on 30 September, compared with 3.83 cents in the prior corresponding period.

Fire Recovery and Year-End Decisions Ahead

The refinery fire remains an unresolved operational issue, with an insurance claim covering property damage and business interruption still being finalised. Further developments include the planned Coles supply exit and consideration of any additional refining-linked dividend at year end. The company’s next updates will clarify progress across these outstanding matters.