Viva Energy Reports 1.1% Commercial Fuel Growth, 11.4% Drop in Convenience Sales
Viva Energy’s latest quarterly update reveals a modest rise in commercial fuel volumes driven by aviation, while convenience retail sales decline amid store conversions and illicit trade pressures.
- Group Commercial fuel volumes up 1.1%, led by aviation growth
- Convenience & Mobility fuel sales down 1.5% after adjusting for store changes
- Convenience retail sales drop 11.4%, impacted by illicit trade and store interruptions
- Refining intake steady at 9.4 million barrels with strong gross refining margin of US$12.1/bbl
- US$1.3 billion revolving credit facility successfully refinanced with full covenant compliance
Commercial Fuel Volumes Show Resilience
Viva Energy Group Limited reported a 1.1% increase in total commercial and industrial fuel volumes for the December quarter of 2025, buoyed primarily by growth in aviation fuel sales. This uptick reflects a continued recovery in air travel demand, offsetting softer conditions in the marine segment. The company’s ability to expand volumes in a challenging environment underscores its operational strength in the commercial fuels market.
Convenience Retail Faces Multiple Challenges
In contrast, the Convenience & Mobility (C&M) segment experienced a 1.5% decline in fuel sales volumes when adjusting for the impact of store conversions and divestments, including the acquisition-related reduction of 15 Liberty Convenience stores. Convenience retail sales themselves fell sharply by 11.4% year-on-year, a decline attributed to illicit trade pressures and trading interruptions caused by ongoing store conversions. Tobacco sales, which constitute a significant portion of convenience revenue, remained stable in the second half of 2025, providing some margin relief.
Like-for-like sales in convenience stores excluding tobacco were down 1.3%, while the company continued to invest in its network with new store openings and conversions, including five undertaken during the quarter. These efforts aim to modernise the retail footprint and improve long-term competitiveness despite short-term disruptions.
Refining Operations and Financial Position
On the refining front, Viva Energy processed 9.4 million barrels of crude in the quarter, achieving a robust gross refining margin (GRM) of US$12.1 per barrel. Production was affected by planned maintenance and the commissioning of the Ultra Low Sulphur Gasoline plant, which was delivered on schedule ahead of the new fuel standard that came into effect mid-December 2025. This upgrade positions the Geelong Refinery well for evolving regulatory requirements and market demand.
Financially, the company successfully refinanced its revolving credit facility, increasing it to US$1.3 billion from US$1.2 billion. The facility remains in full compliance with covenants, providing ample debt headroom and financial flexibility to support ongoing operations and strategic initiatives.
Looking Ahead
While the commercial fuel segment shows encouraging signs of growth, the convenience retail business faces headwinds from illicit trade and operational disruptions. The company’s investments in refining capabilities and financial stability provide a solid foundation, but the evolving retail landscape will require continued adaptation.
Bottom Line?
Viva Energy’s mixed quarterly results highlight growth in aviation fuels but underline ongoing challenges in convenience retail, setting the stage for strategic focus in 2026.
Questions in the middle?
- How will Viva Energy address the persistent impact of illicit trade on convenience sales?
- What are the expected benefits and cost implications of the Ultra Low Sulphur Gasoline plant commissioning?
- Will the company’s refinanced credit facility support potential expansion or acquisitions in 2026?
