Viva Energy provides operating update following OTR acquisition

Viva Energy has released an operating update for the three months ended 31 March 2024, with group sales volumes up 7.5% on the same period last year.

According to the company, its Geelong Refinery operated at near capacity during the period.

The company also continued progress on its strategic agenda with the acquisition of OTR Group completing last month.

Commercial and industrial

Commercial and industrial (C&I) maintained momentum, according to Viva Energy, delivering another record quarterly sales performance.

Sales volumes increased by 11.7% over the same quarter last year, supported by strong demand across most sectors, particularly aviation, resources, and agriculture, and new business secured in 2023 (eg, the Australian Defence Force).

The acquisition of the OTR Wholesale business, says the company, provides a platform for further growth through 2024.

Convenience and mobility

The convenience and mobility (C&M) business also performed well in the face of “adverse weather conditions” in some markets and general cost-of-living pressures impacting market demand.

According to Viva Energy, lower fuel and shop sales volumes compared to the same time last year reflected timing impacts from the store exchange with Chevron (25 divested in February and 13 to be received in April) and Easter falling in March (versus April in 2023).

Adjusting for these one-off impacts, fuel sales volumes were broadly in line with the first quarter of 2023.

Convenience sales were also impacted by lower tobacco sales (down 17%) but offset by growth from other convenience categories which lifted the gross margin to 35.6%.

Viva Energy says the acquisition of OTR Convenience provides a platform to further grow convenience sales as this “proven offer” is extended to the Coles Express/Reddy Express network.

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