Viva Energy

Viva Energy reports strong first quarter performance

Viva Energy Group has provided an operating update for the three months ended 31 March, delivering a strong performance with sales volumes up 7.5 per cent on the same period last year.

The Geelong Refinery is operating at near capacity and Viva Energy has shown continued progress on its strategic agenda with the acquisition of OTR Group completing on 28 March 2024.

Commercial & Industrial (C&I) maintained momentum, delivering another record quarterly sales performance. Sales volumes increased by 11.7 per cent over the same quarter last year, supported by strong demand across most sectors, particularly Aviation, Resources, and Agriculture, and new business secured in 2023, such as the acquisition of the OTR Wholesale business, which provides a platform for further growth through 2024.

The Convenience & Mobility (C&M) business also performed well in the face of adverse weather conditions in some markets and general cost-of-living pressures impacting market demand.

Lower fuel and shop sales volumes compared to the same period last year, reflected timing impacts from the store exchange with Chevron (25 divested in February and 13 to be received in April) and Easter falling in March (versus April in 2023). Adjusting for these one-off impacts, fuel sales volumes were broadly in line with 1Q2023.

Convenience sales were also impacted by a decline in tobacco sales (down 17 per cent) but offset by growth from other convenience categories, which lifted the gross margin to 35.6 per cent.

The acquisition of OTR Convenience provides a platform to further grow convenience sales as this proven offer is extended to the Coles Express/Reddy Express network.

Energy & Infrastructure (E&I) benefited from a period of strong production (crude intake of 10.2 MBBL, 98 per cent unit availability) and supportive regional refining margins, with the GRM averaging US$12.0/BBL for the quarter.

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