Viva Energy Group (VEA) H2 2024 earnings summary

Executive summary

• Achieved strong sales and EBITDA growth in FY2024, driven by strategic acquisitions, notably OTR and Liberty Convenience, and integration progress despite challenging retail trading and cost-of-living pressures.

• Completed OTR acquisition and began Express store conversions, targeting over AUD 90 million in annualised synergies by 2026.

• Entered new markets, including marine fuels in Brisbane and bulk lubricants in Pilbara, and advanced hydrogen and low-carbon fuels initiatives.

• Commissioned 90 million liters of strategic diesel storage at Geelong and progressed major investments in storage, low sulphur gasoline, and hydrogen refuelling.

• Safety performance improved, with enhancements in personal and process safety metrics.

Financial highlights

• Group underlying EBITDA (RC) rose 5% year-over-year to $748.6M, with strong Commercial & Industrial performance; NPAT (RC) fell to $254.2M, and statutory net loss after tax (HC) was $76.3M due to inventory losses and one-off items.

• Group sales reached nearly 17 billion liters (+4% y/y); convenience sales $1,664M; convenience margin 38.8%.

• Revenue increased to $30.1B from $26.7B; gross margin (RC) rose to $3.45B.

• Net capex was $491M–$588.1M, reflecting major investments in acquisitions, integration, and new energy projects.

• Net debt increased to $1.8B, mainly due to OTR acquisition financing; dividend per share was 10.6c, fully franked, with a payout ratio of 66% of NPAT.

Outlook and guidance

• C&M and C&I combined EBITDA guidance for H1 2025: AUD 270–330 million, with significant uplift and $50M in cost reductions targeted for H2 2025.

• Liberty Convenience to contribute AUD 15–25 million EBITDA in H2 2025; integration of OTR and Express businesses to deliver $90M per annum in cost synergies by 2027.

• Refining outlook constructive, with Ultra-Low Sulphur Gasoline upgrade expected to add $1.50/bbl benefit from 2026; major RCCU turnaround planned for Q3 2025.

• Continued investment in renewable fuels, EV charging, and circular economy initiatives.

• Capex to remain elevated in FY2025 (~$500M), then reduce as refinery investment program concludes.