The Viva Energy Group Ltd (ASX: VEA) share price is in focus today after the company reported a sharp lift in first-half EBITDA and an improved refining margin, thanks to elevated regional refining margins and higher retail fuel sales.
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What did Viva Energy report?
- Unaudited 1H26 Group EBITDA (replacement cost): $770–780 million, up from $305 million in 1H25
- Energy & Infrastructure EBITDA: ~$353 million, boosted by Geelong Refinery margin of US$21.1/bbl
- Commercial & Industrial sales volumes: up 1.0% year on year, with EBITDA around $305 million
- Convenience & Mobility fuel sales: up 2.4% to 2,625 ML
- Net debt down to $1.7 billion from $2.1 billion at 31 December 2025
- Convenience & Mobility EBITDA: ~$138 million; convenience sales steady, with growth outside tobacco
What else do investors need to know?
Viva Energy's improved result was mainly driven by a favourable refining environment, with the Geelong plant's margin more than doubling from last year. Production at Geelong was affected by a fire at the Alkylation unit in April, but operations have now recovered to over 90% of normal capacity.
The company's convenience and retail fuel business saw more customer visits and stronger non-tobacco sales, helped by new delivery partnerships and store network expansion. The FlyBuys loyalty program has now been extended to the OTR branded network, offering a more consistent experience for shoppers.
Viva Energy continued investing in its core network and expects to open 20 to 25 new OTR stores in FY26, plus convert more sites to self-service or Liberty formats. The company is also progressing its exit from the Coles distribution agreement, with new supply centres opening in Victoria and Queensland.
What did Viva Energy management say?
CEO Scott Wyatt said:
The first half of this year was shaped by geo-political events which have caused significant disruption across the global energy markets. While these events have severely tested traditional supply chains we have worked closely with governments, customers, and our suppliers to maintain production and supply throughout the period, leveraging Viva Energy's integrated supply chain capability.
Our strong financial results reflect a substantially improved refining margin environment which has been driven by a regional shortage of oil supply and refining capacity, as well as improving retail sales growth and continuing strength of our commercial businesses. Domestic refining has reduced dependency on international refineries and will continue to play a critical role in maintaining fuel supply security into the future.
What's next for Viva Energy?
Looking ahead, Viva Energy expects regional refining margins to remain above historical averages for the rest of 2026. However, supportive hedging for the Commercial & Industrial division is set to reduce in the second half, which could temper some of the gains.
The group remains focused on network development and driving further progress in its convenience offering. With new supply arrangements and a plan to complete the Coles PSA exit by year end, investors can expect continued operational changes aimed at boosting returns and customer reach.
Viva Energy share price snapshot
Over the past 12 months, Viva Energy shares have risen 11%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.
