Viva Energy Group (VEA) H1 2025 earnings summary

Executive summary

• Significant progress in integrating major retail acquisitions, including Coles Express, OTR Group, and Liberty Oil Convenience, with most transition activities complete and focus shifting to operational delivery and growth.

• Group EBITDA (RC) for the half was $304.9M, down 32.5% year-over-year, reflecting strong commercial/industrial performance and challenges in retail and refining.

• Declared an interim fully franked dividend of 2.83 cps, representing a 50% payout ratio for key segments and 73% for the group overall.

• Reported a statutory net loss after tax (HC) of $195.4M, but an adjusted net profit after tax (RC) of $62.6M after significant one-off items and inventory losses.

• Delivered $80M in synergies and cost-outs targeted for FY25, with $65M from Convenience & Mobility.

Financial highlights

• Revenue increased to $14,955.2M, with group sales volumes at 8.4BL and $835M in convenience sales at a 38.7% margin.

• Net debt finished at $1,947M, with gearing at 1.66x term debt to trailing 12-month EBITDA and 3.2x including RCF.

• Net capital expenditure for the half was $225M, with major spend on retail conversions, refining upgrades, and integration.

• Significant non-cash impairment of $245M recognized for certain convenience and mobility sites due to softer trading and tobacco decline.

• Free cash flow was affected by significant investment and integration activity; underlying free cash flow was slightly positive after adjustments.

Outlook and guidance

• On track for around $500M of investment in FY25, mainly for Ultra-Low Sulphur Gasoline and aromatics projects, with major projects to be completed by October.

• Capital expenditure expected to step down to $350M–$450M per annum from FY26 as major projects conclude.

• Focus on reducing gearing to ~2.0x by end of FY27, supported by project completion and improved earnings.

• Targeting delivery of 40 OTR store conversions this year, ramping up to 20–25 per quarter in future years.

• Expecting positive momentum in all business segments by year-end, with improved refining margins anticipated from new Ultra-Low Sulphur Gasoline processing capability.