Viva Energy Group Limited (ASX:VEA) Reports Strong Q4 2024 Performance
4Q2024 Operating Update
Viva Energy Group Limited reports total sales volumes of 4.4 billion litres for 4Q2024, marking a 0.8% increase compared to 4Q2023. The Commercial & Industrial (C&I) segment achieved a record quarterly sales figure of 3 billion litres, significantly driven by growth in Aviation, Transport, and Agriculture.
In addition, Convenience and Mobility (C&M) fuel sales rose by 2.0% compared to the same period last year. The group noted a strong performance linked to network growth across the OTR and Liberty Convenience networks, along with strong seasonal demand.
Financial Performance Highlights
The unaudited financial results for FY2024 indicate that Group EBITDA (replacement cost) is expected to be approximately $750 million. While the C&M segment is projected to be at the bottom end of its guidance range for EBITDA, it faces challenges posed by lower retail fuel margins and ongoing illicit tobacco issues affecting the OTR and Reddy Express businesses.
The Geelong Refining Margin (GRM) was reported at US$6.7 per barrel, with crude intake of 9.3 million barrels. Production was affected by scheduling issues and planned maintenance, with no federal government support expected for 4Q2024.
Geelong Refinery Update and Future Outlook
On 12 January 2025, an unplanned power outage occurred at the Geelong Refinery due to external supply interruptions. Normal production has resumed following successful restart activities. The financial impact from this outage is estimated at around A$20 million.
Viva Energy also announced that the capability to process waste and bio-genic feedstocks for recycled plastics at the Geelong Refinery was established in December 2024, with successful completion of a trial batch.
The group has secured approval from the ACCC for the Liberty Convenience acquisition and anticipates completing the transaction on 31 March 2025.
Motley Fool contributor ..... has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.