The Viva Energy Group Ltd (ASX: VEA) share price is in focus after the company announced the successful restart of its Residue Catalytic Cracking Unit at the Geelong Refinery, with production set to return to over 90% of normal capacity following April's fire. For April and May 2026, the Geelong Refining Margin was US$23.9 per barrel from a refining intake of 6.5 million barrels.
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What did Viva Energy Group report?
- Restart of the Residue Catalytic Cracking Unit (RCCU) at Geelong Refinery, restoring production to over 90% of normal capacity
- Geelong Refining Margin (GRM) averaged US$23.9 per barrel for April and May 2026
- Refining intake reached 6.5 million barrels over the two-month period
- Alkylation unit remains offline, impacting gasoline production from LPG by-product
- Assessment of Alkylation unit repair or replacement options is underway
What else do investors need to know?
Viva Energy's swift action means most refining operations are now back online, significantly boosting capacity after April's incident. However, the Alkylation unit, which helps turn LPG into gasoline, will remain offline through 2027; the company is currently assessing its options to either repair or replace this equipment.
The incident has also prompted a detailed investigation, with early findings pointing to a failure in the Alkylation unit's piping as the cause. Insurance discussions for property damage and business interruption are ongoing, helping to manage financial impacts.
What's next for Viva Energy Group?
Viva Energy is prioritising the repair or replacement of the Alkylation unit, but expects Geelong Refinery will operate at slightly reduced capacity into 2027. The restart of the RCCU should help the company improve refining margins and product yields as it returns to normal operations.
The company will continue its investigation into the incident's cause and work closely with insurers as part of its recovery plan.
Viva Energy Group share price snapshot
Over the past 12 months, Viva Energy shares have declined 1%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
