Viva Energy Group (VEA) H2 2024 earnings summary

Executive summary

• Group EBITDA (RC) rose 5% to $748.6 million in FY2024, driven by strong Commercial & Industrial (C&I) performance, higher refinery intake, and strategic acquisitions including OTR and Liberty Convenience, with integration targeting over $90 million in synergies by end-2026.

• Completed OTR acquisition, began Express store conversions, and advanced integration, with early results showing 30–60% gross margin uplift on ex-tobacco sales.

• Entered new markets such as Brisbane marine fuels and Pilbara bulk lubricants, and launched initiatives in hydrogen and low-carbon fuels.

Financial highlights

• Group fuel sales increased 4% to 16.8 billion litres; convenience sales reached $1,664 million, with gross margin in convenience up to 38.8% due to a shift to higher-margin products.

• EBITDA (RC) up 5% to $748.6 million; EBIT (RC) down 1.8% to $508 million; NPAT (RC) declined 20% to $254 million.

• Net capex was $491 million, reflecting major investments in acquisitions and integration; closing net debt rose to $1.8 billion, mainly due to OTR acquisition financing.

• Dividend payout at 66% of group NPAT, with total dividends of 10.6 cps and Dividend Reinvestment Plan activated.

Outlook and guidance

• C&M and C&I combined EBITDA (RC) guidance for H1 2025: $270–$330 million, down 8–25% from FY24, with significant uplift expected in H2 as $30 million in synergies and $50 million in cost reductions are targeted.

• Liberty Convenience to contribute $15–25 million EBITDA in H2 2025.

• Refining outlook constructive, with Ultra-Low Sulphur Gasoline upgrade expected to add $1.50/bbl benefit from 2026; mid-cycle refining EBITDA targeted at $200–300 million.

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