Viva Energy (ASX:VEA) posted solid sales growth for the third quarter of 2024, with group sales volumes rising by 3% year-on-year to 4.2 billion litres. This was driven by a 3.7% increase in Commercial & Industrial (C&I) sales, bolstered by the company’s Defence, Aviation, and Liberty Rural Group sectors. Convenience & Mobility (C&M) fuel sales also improved by 1.4% amid network expansion.
However, the company faced challenges in its refining operations at the Geelong Refinery, where the Geelong Refining Margin (GRM) fell to US$6.4 per barrel, down from US$8.5 per barrel a year ago. Despite these difficulties, the company maintained profitability, aided by $24 million in support from the Federal Government’s Fuel Security Services Payment (FSSP).
CEO Scott Wyatt remains optimistic, stating, “We are confident that our strategy to integrate our convenience and fuel operations will drive further cost efficiencies and earnings improvements in the coming years. The successful commissioning of our Geelong Strategic Storage Facility and bitumen export line reflects our commitment to enhancing operational resilience and capacity.”
Viva Energy is expected to transition fuel supply from Coles Group by Q2 2025, with projected cost reductions of over $90 million per annum.