Viva Energy Group (VEA) H1 2025 earnings summary

Executive summary

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

• Group EBITDA (RC) for 1H2025 was $304.9M, down 32.5% year-over-year, reflecting weaker refining and retail performance, but stable commercial/industrial results.

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

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

• Non-cash retail site impairment charges of $245M recognized due to soft trading, cost of living pressures, and illicit tobacco impacts.

Financial highlights

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

• EBITDA (RC) was $304.9M, with net profit after tax (RC) at $62.6M, down from $192.1M YoY; statutory net loss after tax (HC) was $195.4M due to significant one-off items.

• Net debt increased to $1,947M, with gearing at 1.66x (term debt/EBITDA) and 3.2x including RCF.

• Net capital expenditure for the half was $225M, with total capital spend for FY2025 expected to be ~$500M.

• Significant one-off items included $245M in impairments, $27M in integration costs, and a $52M gain on Liberty acquisition.

Outlook and guidance

• Positive momentum expected in 2H2025, with improved Convenience earnings, stronger refining margins, and additional $35M in synergies targeted.

• FY25 capex on track for ~$500M, reducing to $350M–$450M p.a. from FY26 as major projects conclude.

• Major refining upgrades (ULSG, Aromatics) to be completed by October 2025, supporting margin recovery.

• Targeting gearing reduction to ~2.0x by end-FY27 as capex moderates and earnings initiatives take effect.

• Ongoing review of Fuel Security Services Payment mechanism with the Federal Government.