Viva Energy provides first quarter update

Viva Energy has provided an operating update for the three months ended 31 March 2025 (1Q2025).

According to the company, it remains on track to deliver EBITDA (RC) in line with guidance of between $270 million and $330 million in 1H2025 across its non-refining businesses, convenience and mobility (C&M) and commercial and industrial (C&I) combined.

Earnings in 2H2025 are expected to benefit from the implementation of approximately $80 million of previously announced synergies and cost reduction initiatives.

In addition, the acquisition of the remaining 50% interest of Liberty Convenience (LOC) was completed on 31 March. Viva Energy expects LOC to contribute between $20 million and $25 million to C&M EBITDA (RC) in FY2025.

C&M quarterly fuel sales grew 1.1% versus the same time last year across the company-controlled channels (Express and OTR), with retail fuel margins strengthening in March. Convenience sales excluding tobacco grew 0.5% in 1Q2025, with average gross margin of 38.2% broadly in line with 1Q2024.

C&I sales declined 6% due to adverse weather events affecting key mining markets and reduced sales into lower margin wholesale markets. Lower sales were largely offset by margin growth across most segments.

C&M synergies

Viva Energy says it’s on track to realise $30 million of C&M synergies in 2H2025 ($60 million annualised run-rate at year-end).

Key progress in 1Q2025 included:

• Rebranded the OTR network from bp to Shell and exited the bp supply arrangement. Viva Energy says this reduces the cost of supply across the OTR/Shell branded network by approximately $20 million per annum ($10 million in 2H2025).
• Established systems and capability to exit the Coles Transitional Services Agreement by the end of April 2025, driving net savings (after cost of new systems) of $1.7 million per month from May ($10 million in 2H2025; $20 million in FY2026).
• Accelerated consolidation of OTR and Express operations under a unified business, which is expected to reduce above-store costs by approximately $20 million per annum ($10 million in 2H2025). These and other synergies are expected to deliver $90 million-plus of annualised earnings uplift by end FY2026.

C&M network

C&M is on track to open between 40 and 60 OTR format stores during FY2025 through a mix of store conversions and new store openings:

• Approximately 10 conversions will commence during 2Q2025. Most conversions in FY2025 are remodels (within the existing roofline) and concentrated in NSW which is expected to help drive efficiencies in supply chain and marketing campaigns.
• Viva Energy has reached an agreement with Dexus Convenience Retail REIT to convert the Express north-bound store in Glasshouse Mountains, Queensland, to the OTR format. Located on one of Australia’s busiest highways between Brisbane and the Sunshine Coast, the site was closed in February 2025 for a knockdown-rebuild (building works to be fully funded by the landlord) and is set to reopen in December 2025. Viva Energy is in discussions with Dexus to convert the south-bound store.
• Negotiations with other landlords for funding arrangements remain focused on opportunities from FY2026 onwards, as the conversion program expands to completing ~100 site conversions per annum.