Viva Energy Group Limited reported a significant net loss for 2025, driven by retail asset impairments, yet underlying profits and strategic investments signal resilience and a clear path forward.
- Net loss after tax of $421.1 million on historical cost basis
- Underlying profit on replacement cost basis of $183.6 million, down 27.8%
- Group EBITDA (replacement cost) of $700.9 million, down 6.4%
- Acquisition of Liberty Convenience and expansion of OTR retail network
- Commissioning of Ultra Low Sulphur Gasoline plant at Geelong Refinery
Financial Performance and Impairments
Viva Energy Group Limited’s 2025 financial results reveal a challenging year marked by a statutory net loss after tax of $421.1 million on a historical cost basis. This loss was largely attributed to significant impairment charges totalling $555.8 million, primarily related to the Convenience & Mobility (C&M) retail assets. Despite this, the Group’s underlying profit on a replacement cost basis; a measure that adjusts for inventory timing and one-off items; stood at $183.6 million, reflecting a 27.8% decline from the previous year.
The Group’s EBITDA on a replacement cost basis was $700.9 million, down 6.4% year-on-year. This performance was buoyed by the Commercial & Industrial (C&I) segment, which delivered a record sales volume and EBITDA of $460.5 million. However, softness in the C&M and Energy & Infrastructure (E&I) segments weighed on overall earnings.
Strategic Retail Expansion and Refinery Upgrades
During 2025, Viva Energy completed the acquisition of Liberty Convenience, adding approximately 95 stores to its portfolio, and opened 35 new OTR stores, further expanding its convenience retail footprint to nearly 1,300 sites nationwide. The integration of these acquisitions and the rollout of new stores underpin the Group’s multi-year retail strategy aimed at building a leading national convenience network.
On the refining front, the Group commissioned a $400 million Ultra Low Sulphur Gasoline (ULSG) plant at its Geelong Refinery, setting a new benchmark for fuel standards in Australia. This upgrade not only ensures compliance with new fuel specifications effective from December 2025 but also supports local refining margins and emissions reductions, reinforcing Viva Energy’s commitment to energy transition and environmental responsibility.
Energy Transition and Sustainability Initiatives
Viva Energy continues to advance its energy transition agenda, focusing on low carbon liquid fuels (LCLFs), sustainable aviation fuel (SAF), and hydrogen refuelling infrastructure. The Group’s Energy & Infrastructure segment remains critical to Australia’s fuel security, with ongoing investments in decarbonisation projects and new energy solutions. The Board highlighted the importance of stable government policy, including the Fuel Security Services Payment (FSSP), to support the refinery’s viability and transition efforts.
Climate-related governance and risk management are embedded at all levels of the organisation, with comprehensive sustainability reporting aligned with Australian standards. The Group’s Scope 1 and 2 greenhouse gas emissions are monitored closely, with targets set for emissions reductions and renewable energy procurement by 2030.
Governance and Executive Remuneration
The Board declared a fully franked final dividend of 3.94 cents per share, bringing total dividends for 2025 to 6.8 cents per share, reflecting a cautious approach amid the challenging environment. Executive remuneration outcomes were aligned with performance, with the CEO, Scott Wyatt, voluntarily forgoing his short-term incentive due to underperformance in the C&M business. The Board also approved a 10% increase in the CFO’s fixed remuneration and adjusted her incentive opportunities to reflect her critical role in addressing retail segment performance.
Board renewal continued with the appointment of two new independent Non-Executive Directors in 2025 and a further appointment effective March 2026, enhancing expertise in retail operations and finance to support the Group’s strategic execution.
Outlook and Market Implications
Viva Energy enters 2026 with a clearer strategic path, strengthened retail foundations, and ongoing energy transition initiatives. The Group’s ability to navigate regulatory reviews, including the FSSP and climate-related policies, will be pivotal. Investors should watch closely for developments in government support mechanisms, retail integration progress, and the scaling of low carbon fuel production as key drivers of future value.
Bottom Line?
Viva Energy’s 2025 results underscore the tension between near-term challenges and long-term transformation in Australia’s energy landscape.
Questions in the middle?
- How will the upcoming government review of the Fuel Security Services Payment impact Viva Energy’s refining operations?
- What are the prospects and timelines for scaling low carbon liquid fuel manufacturing at the Geelong Refinery?
- How effectively can Viva Energy integrate Liberty Convenience and OTR to drive sustained profitability in the Convenience & Mobility segment?