The Viva Energy Group Ltd (ASX: VEA) share price is in focus today after the company reported a 1.1% lift in total group sales volumes for the fourth quarter of 2025, with convenience sales and refining margins highlighted in the update.
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What did Viva Energy report?
- Total group sales volumes increased 1.1% to 4,408 million litres in 4Q2025 versus 4Q2024
- Commercial & Industrial fuel volumes rose 3.7% year-on-year, led by aviation fuel
- Convenience sales fell 11.4% to $431 million, with tobacco sales down 33.6%
- Gross margin on total convenience sales improved 4.5 percentage points to 42.2%
- Geelong Refining Margin (GRM) increased to US$12.1 per barrel (up from US$6.7/bbl in 4Q2024)
- The company refinanced and increased its revolving credit facility to US$1.3 billion
What else do investors need to know?
Viva Energy's convenience business saw softer sales, mainly because of trading interruptions linked to store conversions and the divestment of 15 Liberty Convenience stores, a condition of its OTR Group acquisition. While total convenience sales dropped, the decline in sales excluding tobacco was far less pronounced at just 1.3%, and like-for-like sales in OTR-format stores rose 1.9%.
The company opened 35 OTR stores over FY2025, continuing its network transformation, and completed five Liberty conversions in the December quarter. Despite a small drop in overall retail store numbers, the network remains broad, with more than 985 core fuel and convenience sites nationwide.
What's next for Viva Energy?
Viva Energy's new Ultra Low Sulphur Gasoline plant was delivered on time and ahead of new December 2025 standards, which bodes well for compliance and operational efficiency moving forward. The company's focus remains on growing its convenience formats and enhancing gross margin, while continuing to invest in refining flexibility and core infrastructure.
Looking ahead, management has flagged ongoing emphasis on integrating OTR Group acquisitions and adapting to trends in tobacco and non-tobacco convenience sales. Debt levels remain well managed following the recent refinancing.
Viva Energy share price snapshot
Over the past 12 months, Viva Energy shares have declined 24%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.
