Viva Energy has released a trading update for the three months ended 31 December 2023 (4Q2023). It has also provided unaudited financial result for the 12 months ended 31 December 2023 (FY2023).
Group fuel sales volumes increased by 8.3% in 4Q2023 compared to the same period last year, led by particularly strong growth from Commercial & Industrial (C&I). For the year, fuel sales totalled 15,521 million litres (ML), more than 5% above pre-pandemic levels.
C&I grew sales by 12.4% to 2,941ML – its best quarterly result on record. Viva Energy says sales growth was driven by the sustained recovery in the international aviation sector, continued growth from most other sectors and a contribution from the Australian Defence Force business after securing the contract in July 2023.
Convenience & Mobility (C&M) achieved shop sales of $317 million and a gross margin of 35.7%, offsetting declining tobacco sales with strong growth in other categories. Although fuel sales were marginally down (down 0.8% versus 4Q2022) as elevated fuel prices weighed on mobility, Viva Energy says falling product prices bolstered retail fuel margins after the significant compression experienced in 3Q2023. Weekly sales volumes at the company-operated network (previously Coles Express) were relatively stable at 58 million litres.
The refinery returned to normal operations following extended major maintenance, with crude intake ramping up to full capacity over the quarter. However, this coincided with a period of weaker regional refining margins, elevated crude premia and outsales of surplus intermediate feedstocks resulting from the extended turnaround, driving a GRM of US$8.8/BBL in 4Q2023.
Unaudited FY2023 Energy & Infrastructure (E&I) EBITDA (RC) is expected to be approximately $65 million inclusive of insurance recoveries (in relation to the compressor incident announced in June 2023). Unaudited Group EBITDA (RC) is expected to be approximately $710 million in FY2023, supported by strong performances in the C&M and C&I businesses.
