Viva Energy (ASX:VEA) Announces FY2024 Financial Results
Financial Performance
Viva Energy reported a 5% increase in Group EBITDA to $748.6 million for FY2024, driven by strong fuel sales and improved refinery performance. Commercial & Industrial (C&I) EBITDA also rose by 5% to $469.9 million. Fuel sales reached 16.8 billion litres, up 4% on a pro forma basis.
Strategic Acquisitions and Synergies
The Group completed the acquisition of OTR Group and received regulatory approvals for the Liberty Convenience acquisition. Viva Energy is targeting $90 million in synergies over the next two years, accelerating efforts to deliver approximately $30 million in FY2025. A cost reduction program is set to achieve $50 million in savings in the second half of 2025.
Executive Comments
Viva Energy CEO and Managing Director, Scott Wyatt, stated: “Viva Energy delivered approximately $750 million of EBITDA during FY2024. This was up 5% on FY2023, supported by strong sales growth in our Commercial business and higher crude intake due to lower levels of maintenance and improved operating performance in our Refinery.”
Future Outlook and Guidance
For 1H2025, Viva Energy expects combined C&M and C&I EBITDA of $270 million to $330 million. The company anticipates earnings growth in the second half of 2025 through accelerated synergies and cost reductions. Capital expenditure for FY2025 is projected to be around $500 million.
Dividends and Capital Management
Viva Energy has declared a fully-franked final dividend of 3.87 cents per share, payable on 31 March 2025. The Group’s net debt increased to $1,793.5 million as of 31 December 2024, primarily due to the acquisition of OTR Group and capital expenditures.
Motley Fool contributor Abbie Stokes 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.