Viva Energy Group reported a 1.5 per cent share price decline following its December quarter trading update. The company saw total group sales volumes reach 4408 megalitres, a 1.1 per cent increase compared to the previous year. This growth was primarily driven by stronger commercial and industrial fuel sales, notably in the aviation sector, which compensated for reduced marine demand. Viva Energy refines, imports, and distributes fuels and lubricants in Australia. It also operates a network of service stations across the country.
Convenience & Mobility fuel volumes experienced a 1.5 per cent decrease on a like-for-like basis. This was attributed to ongoing store conversions and the divestment of 15 Liberty stores. Overall convenience sales also declined by 11.4 per cent, significantly impacted by a 33.6 per cent drop in tobacco sales, which the company links to illicit trade. Despite the fall in sales, gross margin on total convenience sales showed improvement, rising 4.5 per cent to 42.2 per cent.
OTR-format stores performed well, delivering a 1.9 per cent increase in like-for-like sales. Refining intake for the period totalled 9.4 million barrels. The Geelong refining margin was reported at $US12.1 per barrel. This margin was achieved despite planned maintenance activities, power disruptions, and the commissioning of the ultra low sulphur gasoline plant in anticipation of the new fuel standard.
