Viva Energy Sees Modest Revenue Decline Amid Refining Margin Normalization

Viva Energy Group Ltd (ASX: VE) has reported its full-year results for 2024, showing a mix of refining and retail dynamics.

Total group revenue reached AUD 22 billion in 2024, driven by fuel sales across its refining and retail network. This marks a modest decline of about 4% year on year from the AUD 23 billion reported in 2023, as refining margins normalized from prior elevated levels while volume trends in retail fuel markets remained broadly stable.

Viva Energy generated EBITDA in the low billions of Australian dollars in 2024, with management highlighting that it was lower than in 2023 due to revenue shift, yet still supported by ongoing demand for transport fuels and the contribution from its Geelong refinery operations. Net income for 2024 came in at several hundred million Australian dollars, reflecting resilient profitability in a more typical margin environment compared with the unusually strong refining conditions experienced in 2022 and parts of 2023.

The company maintained a relatively conservative net debt position during 2024, with net debt measured in the low single-digit billions of Australian dollars and leverage ratios kept within the framework communicated to investors. Viva Energy's capital expenditure for 2024 was focused on refinery maintenance, retail site investments, and selective projects in energy transition.