Viva Energy (ASX: VEA) has reported a 5% increase in EBITDA (RC) to $748.6 million for the 2024 financial year, driven by strong fuel sales and strategic acquisitions. The company’s fuel sales rose 4% to 16.8 billion litres, while its Commercial & Industrial (C&I) segment posted record EBITDA of $469.9 million, up 5% on the previous year.
Despite growth in key areas, net profit after tax (RC) fell 20% to $254.2 million, impacted by weaker refining margins, inflationary pressures, and lower demand in the convenience business. The Geelong Refining Margin (GRM) averaged US$8.7 per barrel, down from US$9.8 in 2023, although refinery throughput increased by 27% to 40.1 million barrels.
Viva Energy is accelerating its integration of OTR Group and Liberty Convenience, targeting $90 million in synergies by 2026, with $30 million expected in FY25. The company has begun converting Express stores to the OTR format, with early results showing strong sales uplifts. It plans to convert 40 to 60 stores in the coming year and ramp up to 100 conversions per year.
To counter headwinds in the convenience segment, the company has launched a $50 million cost reduction program across its operations, with most benefits expected in the second half of 2025.
A fully franked final dividend of 3.87 cents per share was declared, bringing the total 2024 dividend to 10.6 cents per share, representing a 50% payout ratio of C&M and C&I NPAT. The dividend is payable on 31 March 2025.
Viva Energy is one of Australia’s leading fuel and energy companies, operating nearly 1,500 service stations and the Geelong Refinery. It supplies fuels, lubricants, and chemicals across aviation, marine, mining, and transport industries, with a growing focus on convenience retail and energy infrastructure.
