Key Highlights

• On 25 August 2026, Viva Energy published its half-year results for 2026, covering the six months to 30 June. presentation, EBITDA was $774.4 million, up 154 per cent, and EBIT was $616.1 million, up 250 per cent.

• Net profit after tax was $371.1 million, up 492.8 per cent, and the Dividend was 7.73 cents per share, up 173.1 per cent.

• Group fuel sales rose 1.3 per cent despite disruption in the Middle East.

• Profit rose far faster than fuel sales, which grew only 1.3 per cent, reinforcing that margins rather than volumes drove the result.

Why did Viva Energy report profit several times higher than a year earlier, and how much of that can be relied on to continue? For Viva Energy Group (ASX:VEA), the answer lies mainly in unusually encouraging refining margins at its Geelong refinery, with fuel Marketing and a changing convenience network providing a more stable base.

The central development: a sharp jump in first-half earnings

On 25 August 2026, Viva Energy published its half-year results for 2026, covering the six months to 30 June. presentation, EBITDA was $774.4 million, up 154 per cent, and EBIT was $616.1 million, up 250 per cent. Net profit after tax was $371.1 million, up 492.8 per cent, and the dividend was 7.73 cents per share, up 173.1 per cent. Group fuel sales rose 1.3 per cent despite disruption in the Middle East.

This matters because the size of the increase reflects conditions that may not persist, which is why separating refining from marketing is important. Profit rose far faster than fuel sales, which grew only 1.3 per cent, reinforcing that margins rather than volumes drove the result.

What Viva Energy does and how it earns

Viva Energy operates the Geelong refinery in Victoria, supplies fuel to commercial and industrial customers such as aviation, Mining and transport, and operates a convenience and mobility network. Its Business is commonly split into Energy and Infrastructure, which includes refining and terminals, Commercial and Industrial, and Convenience and Mobility.

Refining Earnings depend on the Margin between the price of refined products and the cost of crude oil, which can be volatile. Marketing and convenience earnings depend on fuel volumes, non-fuel sales and the margins on those sales, and tend to be steadier.

Refining margins and the Geelong refinery

In a July 2026 first-half update, the company reported a Geelong refining margin of US$21.1 per barrel, more than double the prior year. Management attributed this to a regional shortage of oil Supply and refining capacity linked to geopolitical events, and described the margin environment as substantially improved. Regional refining margins were expected to remain above historical averages for the rest of 2026.

A fire in the alkylation unit in April disrupted production. The company said operations had recovered to more than 90 per cent of normal capacity, which was also its expectation in the half-year presentation. No injuries were reported.

The July figures were preliminary and unaudited, and the final numbers in the August presentation can differ from them.

Segment performance

The July update gave approximate segment EBITDA of $353 million for Energy and Infrastructure, $305 million for Commercial and Industrial, and $138 million for Convenience and Mobility. In Commercial and Industrial, sales volumes rose 1.0 per cent. In Convenience and Mobility, fuel sales rose 2.4 per cent to 2,625 megalitres, with growth coming from customer visits and non-tobacco sales, supported by new delivery partnerships and network expansion.

Convenience network and the Coles transition

The company extended the Flybuys loyalty program to its OTR branded network and expected to open 20 to 25 new OTR stores in the 2026 year, while converting more sites to self-service or Liberty formats. It is also exiting its Coles distribution agreement, with new supply centres opening in Victoria and Queensland, and expects the exit to be completed by the end of the year.

A transition of this kind involves operational and customer risk. The shift to its own supply centres should give more control, but it also means execution matters in the months ahead.

Balance sheet and outlook

Net Debt was reported at $1.7 billion in the July update, down from $2.1 billion at 31 December 2025. The company reaffirmed full-year Capital Expenditure of $350 million to $400 million. Management said it expects continued benefit from encouraging refining margins and advantaged supply arrangements while managing costs and improving operational efficiency.

Hedging support for Commercial and Industrial is expected to decline in the second half, which could moderate gains.

Sector conditions and competitive position

Australia has a small number of domestic refineries, which means local refining margins are linked to regional supply. When capacity tightens or supply is disrupted, margins can rise sharply, and when conditions normalise they can fall just as quickly. Viva's integrated model, which combines refining with a large fuel distribution network, offers some protection because the marketing business can benefit when refining is weaker, though the reverse can also apply.

Competition in fuel retail is intense, with major oil companies, supermarkets and independent operators competing on price, convenience and loyalty offers. Longer term, the shift to electric vehicles and changing fuel standards are structural questions for refiners and fuel retailers.

Material risks and upcoming developments

The key risk is a fall in refining margins from their current high level, because they reflect geopolitical disruption. Other risks include further refinery outages, crude supply interruptions, currency and oil price movements, the Coles transition and the decline in hedging support.

Upcoming developments include progress on the Coles exit by year end, the pace of OTR store openings, updates on Geelong refinery performance, and the next trading update. Dates should be confirmed on the company's investor calendar.