Viva Energy’s Geelong Refinery experienced a significant fire on 15 April that impacted the Alkylation unit. The company has now provided an update confirming that repair and restart efforts are progressing on schedule with no identified impediments. The company anticipates that repairs to damaged units will take approximately six weeks, with the critical Residue Catalytic Cracking Unit (RCCU) expected to resume normal operation during June. This timeline represents a relatively contained recovery period for an incident of this nature, suggesting the company has successfully stabilised the situation and mapped out a clear path to restoration.
During the repair period, Viva Energy’s Geelong Refinery will operate at significantly reduced capacity. The company expects to produce diesel and jet fuel at approximately 80 percent of normal capacity and petrol at approximately 60 percent while the RCCU remains offline. These constraints will persist until the RCCU restarts in June, at which point production is expected to increase to over 90 percent of total capacity. A key reassurance in the announcement is the company’s confirmation that it maintains sufficient fuel stocks to cover this reduced production period and expects to maintain normal fuel supply to its customer base throughout the disruption.
The announcement provides several factors that should support investor confidence in the company’s near-term outlook. The ability to maintain normal customer fuel supply despite a substantial reduction in refinery production demonstrates that Viva Energy had adequate contingency stocks in place at the time of the incident. The company has also engaged with its insurers regarding both property damage claims and business interruption coverage, which may offset a significant portion of the financial impact from lost production during the repair period. The six-week repair window, if achieved on schedule, would result in only a relatively brief period of constrained operations for the broader refinery.
Looking ahead, investors should track the company’s ability to execute against its stated timeline for the RCCU restart in June. Any delays to this schedule could extend the period of reduced production and potentially create supply chain pressures for Viva Energy’s fuel distribution business. The outcome of insurance negotiations and the final assessment of repair costs will be important in determining the total financial impact of the incident. Additionally, the ongoing investigation into the fire’s cause may reveal operational or safety factors relevant to the company’s longer-term outlook. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Viva Energy Group Limited (ASX: VEA)
Viva Energy Group Limited is an energy company operating in Australia, Singapore, and Papua New Guinea with three main business segments: Convenience & Mobility, which operates fuel and convenience retail under brands including Shell and Coles Express; Commercial & Industrial, which supplies fuel and lubricants; and Energy & Infrastructure, which includes refining and pipeline operations. The company is Australia’s second-largest vertically integrated refined transport fuel supplier with a significant refining operation in Geelong.
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