Key Highlights

  • Replacement cost EBITDA rose to A$774.4 million from A$304.9 million in the half to 30 June 2026.
  • Replacement cost net profit after tax reached A$371.1 million, up from A$62.6 million.
  • Most of the improvement came from refining, the most volatile part of the business.
  • The Interim Dividend was lifted to 7.73 cents per share.

What happens to a fuel refiner and retailer when global energy markets are disrupted? Viva Energy Group Ltd. (ASX:VEA) offered a detailed answer on 25 August 2026, when it reported results for the half year to 30 June 2026. Replacement cost EBITDA rose to A$774.4 million from A$304.9 million, replacement cost net profit after tax reached A$371.1 million from A$62.6 million, and the interim dividend was lifted to 7.73 cents per share. The result matters because most of the improvement came from refining, the most volatile part of the business, so the figures say as much about the market backdrop as about management.

What Viva Energy does

Viva operates in three areas. Convenience and Mobility (C&M) covers retail fuel and shops, including the OTR convenience brand.

"Replacement cost" earnings, the company's headline measure, adjust for changes in the value of inventory as crude prices move, so they show underlying trading more clearly than statutory profit. The announcement did not include statutory profit, total Revenue or a leverage ratio, so those are not covered here.

The 1H26 numbers

For the half year ended 30 June 2026, compared with 1H25:

EBITDA (replacement cost) A$774.4 million, up 154.0%.

EBIT (replacement cost) A$616.1 million, against A$176.0 million.

NPAT (replacement cost) A$371.1 million, against A$62.6 million.

Sales volumes of 8,490 million litres, up 1.3%.

Volumes barely moved, so the Earnings jump was about margin, not demand. The company's risk language refers to geopolitical disruption, particularly the Middle East conflict. Viva does not control that backdrop, and it should not be treated as permanent.

Refining drove the change

Energy and Infrastructure delivered EBITDA of A$353.7 million, compared with A$18.4 million a year earlier. The Geelong Refining Margin was US$21.1 per barrel, against US$8.2 per barrel in 1H25, and refining intake was 19.7 million barrels, against 18.8 million. The company said the July 2026 refining margin was US$20.7 per barrel, which suggests strength carried into the second half, though one month is a small sample.

An incident at the refinery on 15 April 2026 reduced margin and crude intake in the second quarter. Operations were restored and the residue catalytic cracking unit and associated units restarted in June.

Viva also receives support under the federal Fuel Security Services Payment. No payment was received in 1H26 because the average Margin Marker stayed above the A$15.9 per barrel support threshold, which means the safety net was not triggered. The company noted that the cap and collar on the mechanism rose by 3.6 cents per litre, equivalent to A$5.7 per barrel.

The retail and commercial businesses

C&M EBITDA rose 86.4% to A$138.7 million. Fuel volumes were 2,626 million litres, up 2.0%, while convenience sales slipped to A$803 million from A$835 million. Excluding tobacco, convenience sales rose 1.3%, and tobacco sales fell 16.8%. The shop margin was 37.7%, flat on the prior period.

The company credits resources, aviation and marine spot sales, plus favourable term Supply arrangements that it expects to moderate in the second half of 2026.

Dividend, Debt and Capital spending

The interim dividend of 7.73 cents per share, fully franked, totals A$126.9 million, against 2.83 cents a year earlier. Any dividend relating to refining profit is assessed at year end. The Record Date was 7 September 2026 and payment was due on 30 September 2026.

Net debt was A$1,720.0 million at 30 June 2026, down from A$2,074.8 million at 31 December 2025. Net Capital Expenditure was A$123.0 million in the half, and the company reaffirmed full-year capital spending guidance of about A$350 million to A$400 million.

Outlook and strategy

Management expects refining margins to remain encouraging through the rest of 2026. In C&M, the supply chain transformation is on track for completion at the end of November 2026. The company plans to open about 20 to 25 new OTR stores, convert 10 to 15 Reddy Express stores to a mix of OTR and Liberty Convenience, and convert 25 to 30 sites to unattended self-service. These are plans, not results.

Viva is also engaging with government on Australian Fuel Reserves, higher Minimum Stockholding Obligations and a Refinery Retention program. It says these could support infrastructure development at the Geelong Energy Hub.

Competitive position

Viva is one of a small number of fuel suppliers in Australia, where it competes with other refiners-importers and large retail chains. The Geelong Refinery gives it local supply but also makes it more exposed to crude costs and refining spreads than importers. A margin of US$21.1 per barrel is well above the US$8.2 per barrel of 1H25, which is context for how unusual the half year was.

Risks and what to watch

The company's own list of risks includes geopolitical disruption to global energy supply chains, disruption to aviation fuel volumes, moderation of the favourable term supply arrangements, refinery operational risk, continued decline in tobacco sales, and margin volatility.

Items to watch include completion of the supply chain transformation in November 2026, the pace of OTR openings, refining margins relative to the A$15.9 per barrel support threshold, government decisions on fuel reserves, and the full-year result, which will show how much of the first-half margin strength lasted.