Viva Energy Group has reported its strongest half-year earnings, with Group EBITDA (replacement cost basis) surging to $774.4 million from $304.9 million in the prior year period, marking a 154% increase. This substantial earnings growth was delivered across all three business units, reflecting both cyclical tailwinds in energy markets and operational improvements within the business. The standout performance saw net profit after tax jump to $371.1 million from $62.6 million, representing a 493% increase year-on-year.
The primary driver of the result was the elevated refining margin environment, which benefited the Energy and Infrastructure segment significantly. The Geelong Refining Margin climbed to 21.1 US dollars per barrel from 18.8 in the prior period, though this was partially offset by the impact of an alkylation unit fire at the Geelong Refinery. Despite this operational disruption, the integrated supply chain remained resilient through a period of significant global energy market volatility driven by geo-political events. The Commercial and Industrial business segment contributed EBITDA of $305.4 million, up 28.4%, while Convenience and Mobility reported EBITDA of $138.7 million, nearly doubling from $74.4 million, aided by a full-period contribution from the Liberty Convenience acquisition completed in March 2025.
From a capital management perspective, the company has strengthened its balance sheet substantially. Net debt reduced to approximately $1.7 billion at 30 June 2026 from $2.1 billion at the end of 2025, demonstrating strong cash conversion during the period. This deleveraging creates additional financial flexibility and improves the company’s defensive positioning should market conditions deteriorate. The interim dividend of 7.73 cents per share represents a 70% payout ratio of Commercial and Industrial and Convenience and Mobility net profit after tax, positioning the payout at the top end of the company’s stated dividend policy. This signals management confidence in the sustainability of earnings, though investors should note that the refining margin environment remains volatile and linked to global supply conditions.
Investors should consider several key risks going forward. Refining margins have mean-reverted historically, and the current elevated environment may not persist, which could significantly impact the Energy and Infrastructure segment’s contribution to group earnings. The geo-political disruptions mentioned in the announcement remain unresolved, and any escalation could create supply chain pressures. Additionally, the alkylation unit fire damage at Geelong suggests ongoing operational risks in the refining business. For Convenience and Mobility, the tobacco sales decline of 16.8% year-on-year warrants monitoring, though management notes stability relative to the second half of 2025.
Moving forward, investors should track refining margins, any progress on repairing the alkylation unit, and whether the momentum in retail fuel sales and convenience volumes can be sustained through the second half. The company’s ability to maintain disciplined capital allocation while returning cash to shareholders through elevated dividends will also merit close attention.
This announcement is classified as price sensitive by the ASX and has been flagged as material.
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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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