Highlights

  • Viva Energy recorded Group Fuel Sales of 17.0B litres during the 2025 fiscal year.
  • Underlying EBITDA (RC) reached AUD 701M, reflecting resilience amid major maintenance activities.
  • Full-year dividends were set at 6.77 cents per share, representing 55% of retail earnings.

Viva Energy Group Limited (ASX:VEA) completed the 2025 fiscal year focusing on integrating its expanded retail network and completing large-scale infrastructure projects. The Group reported an underlying EBITDA (RC) of AUD 701M, slightly lower than AUD 749M in the previous fiscal year. Notably, the second half of the year showed a stronger performance, with EBITDA  rising 30% to AUD 396M.

Key strategic milestones included the acquisition of Liberty Convenience and the opening of 35 new OTR stores, primarily located in New South Wales. Additionally, Viva Energy successfully exited the Coles Transitional Services Agreement (TSA), implementing independent ERP and point-of-sale systems to support multi-brand retail operations. These initiatives underpin the company’s focus on streamlining operations while integrating its growing retail footprint.

Commercial and Industrial Segment Shows Resilience

The Commercial and Industrial (C&I) segment delivered steady performance during FY2025, with fuel sales volumes rising 0.9% to 11.8B litres. Growth was primarily driven by a 5% increase in Aviation (Jet) fuel sales, supported by international demand and Defence activities.

Despite higher sales volumes, C&I segment EBITDA (RC) slightly declined to AUD 460.5M from AUD 469.9M in the prior year. The decrease reflected inflationary pressures and investments in supply chain capabilities, including the commissioning of a new barge in Brisbane. The segment’s performance demonstrates the company’s capacity to manage volumes and maintain operations amid broader market and operational pressures.

Energy and Infrastructure Operations at Geelong Refinery

The Energy and Infrastructure (E&I) segment, centered on the Geelong Refinery, reported EBITDA (RC) of AUD 93.0M for FY2025. This outcome was influenced by a planned major maintenance cycle, including the Residual Catalytic Cracking Unit (RCCU) turnaround, and an external power supply outage in January.

The company successfully commissioned Ultra Low Sulphur Gasoline (ULSG) production units in line with new federal fuel specifications. The project incurred a total net cost of AUD 275.7M after government contributions. Management noted that no major maintenance is planned for FY2026, which is expected to support more stable refining operations and output.

Convenience and Mobility Integration Progress

The Convenience and Mobility (C&M) segment faced transitional challenges throughout FY2025, reporting EBITDA (RC) of AUD 197.4M. Fuel margins improved following the transition of OTR supply to Viva Energy’s internal supply chain. However, higher operating costs and a decline in tobacco margins, driven by illicit market activity, partially offset these gains.

Rebranding efforts to convert Coles Express sites to Reddy Express are largely complete. The company is now focused on converting Reddy Express locations to the OTR format, with 25 conversions completed during FY2025. Early operational data indicate a 27% uplift in ex-tobacco store sales in the initial weeks following conversion, highlighting the potential benefits of the integration strategy.

Retail Expansion and Strategic Integration

Viva Energy’s strategic focus on retail expansion and integration has been central to FY2025 performance. The acquisition of Liberty Convenience and OTR network growth facilitated access to high-traffic sites, supporting fuel volume growth and enhancing retail revenue. Operational improvements, including the transition from the Coles TSA and the implementation of independent systems, provide the company with increased control over retail operations.

The integration of these assets aligns with the company’s broader approach to create synergies between fuel sales, convenience offerings, and mobility services. These initiatives aim to improve operational efficiency while enhancing the overall customer experience across retail sites.

Capital Management and Balance Sheet

Net debt for FY2025 increased to AUD 2.1B following the peak of Viva Energy’s multi-year investment program. The company targets a reduction in gearing toward 2.0x by the end of FY2027. Net capital expenditure during FY2025 was AUD 494M, with expectations for moderation to between AUD 350M and AUD 400M in FY2026.

CEO Scott Wyatt stated in the annual report:
"We are highly focused on delivering to our full potential and lifting shareholder value. Key drivers include improving retail execution, maximizing refining production through a low maintenance cycle, and bringing down gearing through lower capital expenditure."

These measures underscore a disciplined approach to capital allocation, balancing investment in growth initiatives with financial sustainability and shareholder returns.

Dividend Distribution and Shareholder Returns

For FY2025, Viva Energy determined a fully franked dividend of 6.77 cents per share, representing approximately 55% of retail earnings. The dividend reflects the company’s continued commitment to returning value to shareholders while supporting strategic investments and operational improvements.

The dividend distribution, combined with disciplined capital management and operational integration, positions the company to maintain financial stability as it transitions into FY2026 with reduced capital expenditure requirements.

Viva Energy Group Limited reported FY2025 Group EBITDA (RC) of AUD 701M, underpinned by record C&I sales volumes of 11.8B litres. Strategic achievements included OTR and Liberty Convenience acquisition, Geelong Refinery upgrades, and retail integration. Dividends were set at 6.77 cents per share, representing 55% of retail earnings. FY2026 is expected to feature lower capital expenditure, supporting balance sheet stability and operational efficiency.

FAQ

Q1. What was the total dividend amount declared by Viva Energy for FY2025?
Viva Energy declared a fully franked dividend of 6.77 cents per share, consistent with its current payout policy.

Q2. How did the Geelong Refinery perform during FY2025 regarding maintenance?
Geelong Refinery operations were impacted by planned maintenance and a power outage, resulting in E&I EBITDA of AUD 93.0M.

Q3. What is the projected capital expenditure for FY2026?
Viva Energy expects FY2026 capital expenditure to moderate to between AUD 350M and AUD 400M, supporting balance sheet reduction goals.