Viva Energy Australia

Viva Energy Group Limited is one of Australia’s leading energy companies, supplying approximately a quarter of the country’s liquid fuel needs and operating a vast network of retail and commercial fuel locations. With its roots dating back over 120 overs, Viva Energy has grown into a diversified energy provider, leveraging its strong presence across Convenience & Mobility (C&M), Commercial & Industrial (C&I), and Energy & Infrastructure (E&I) segments to drive sustainable growth.

Headquartered in Melbourne, Viva Energy operates the Geelong Refinery, one of only two refineries in Australia, and manages over 1,330 retail fuel sites across the nation under the Shell brand. The company is well-positioned to support Australia’s energy transition, investing in innovative low-carbon solutions including hydrogen refueling infrastructure, electric vehicle (EV) charging networks, and renewable diesel production.

Viva Energy is listed on the Australian Securities Exchange (ASX: VEA) and is committed to delivering strong financial performance while prioritizing environmental stewardship and social responsibility. By integrating sustainability into its operations and partnering with governmental and environmental organizations, Viva Energy aims to lead the industry in responsible energy practices and continue building its reputation as a trusted provider of reliable, cleaner energy solutions.

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Viva Energy represents a compelling investment opportunity, driven by its established market position, strategic infrastructure, and commitment to innovation in Australia’s evolving energy landscape. The company’s expansive retail network, supply chain capabilities, and the Geelong Refinery—one of Australia’s primary fuel production sites—provide an unmatched platform for growth in fuel and convenience markets. With recent acquisitions, including the OTR Group, Viva Energy has strengthened its presence across urban and regional areas, enhancing its ability to capture synergies and increase its Convenience & Mobility (C&M) segment's earnings.

As Australia transitions to low-carbon energy sources, Viva Energy is strategically positioned to lead in emerging fuel technologies. Through partnerships and ongoing investments in renewable fuels, hydrogen refueling, and electric vehicle (EV) charging infrastructure, the company is at the forefront of sustainable energy solutions, aiming to reduce its carbon footprint and support Australia’s net-zero ambitions. Initiatives like the hydrogen refueling station at Geelong and solar-powered EV chargers demonstrate Viva Energy’s proactive approach to future-proofing its operations.

The company’s growth potential is further supported by its stable revenue streams from long-term contracts with commercial and government clients, including a recently secured Defense contract. These stable revenue sources, combined with Viva Energy’s strategy for capital efficiency and disciplined investment, offer investors exposure to both robust cash flows and long-term growth in cleaner energy solutions.

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Viva Energy’s leadership team brings together deep expertise across energy, retail, infrastructure, and environmental stewardship, positioning the company to navigate Australia’s dynamic energy sector while advancing sustainable growth initiatives.

At the helm is Scott Wyatt, Chief Executive Officer, who has led Viva Energy since its inception in 2014. With over 30 years in the downstream oil industry, Scott has a proven track record of driving growth and operational excellence, having played a key role in Viva Energy’s expansion and strategic direction. 

The company’s financial strategy is overseen by Carolyn Pedic, Chief Financial Officer, who brings a wealth of experience in corporate finance and operational strategy. Under her guidance, Viva Energy has maintained capital discipline while executing key acquisitions and investing in sustainable energy initiatives, positioning the company for resilient financial performance.

Dale Cooper, Executive General Manager, Refining, is responsible for overseeing the day-to-day operations, including refining, supply, and distribution. With over 25 years of experience in refining and supply chain management, Dale plays a critical role in optimizing Viva Energy’s supply chain efficiency and operational reliability, especially within the Geelong Refinery.

Together, Viva Energy’s leadership team drives a balanced approach to growth, innovation, and operational excellence, underpinned by a commitment to safety, sustainability, and delivering shareholder value.

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Viva Energy is executing a forward-looking growth strategy focused on expanding its core fuel and convenience operations while investing in future energy solutions to support Australia’s low-carbon transition. The company’s strategic initiatives center around optimizing its Convenience & Mobility (C&M) and Commercial & Industrial (C&I) segments, advancing operational efficiency at the Geelong Refinery, and pioneering renewable energy infrastructure.

A central element of Viva Energy’s growth plan is its recent acquisition of the OTR Group, which enhances its retail presence and accelerates its goal to achieve over $500 million in C&M EBITDA by 2028. This acquisition allows Viva Energy to expand into new regional markets, streamline operations, and drive synergies across its convenience and fuel retailing network. Over the next three years, the company aims to unlock $60 million in annual synergies, driven by integrating supply chain efficiencies and optimizing store formats.

To support its leadership in sustainable energy, Viva Energy is investing in renewable and low-carbon initiatives, including Australia’s first public hydrogen refueling station at the Geelong Refinery, solar-powered EV charging stations, and a proposed recycled plastics facility. These projects are aimed at diversifying Viva Energy’s portfolio and aligning with Australia’s net-zero targets, positioning the company as a trusted partner in the energy transition.

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Viva Energy’s robust financial performance underscores its strategic investments and disciplined approach to growth. For the first half of 2024, the company reported a 25% increase in Group EBITDA (RC) to $452 million, driven by strong performance across its Convenience & Mobility (C&M), Commercial & Industrial (C&I), and Energy & Infrastructure (E&I) segments. This growth reflects the impact of Viva Energy’s recent acquisitions, efficient cost management, and steady demand across fuel and convenience markets.

The acquisition of the OTR Group has significantly contributed to Viva Energy’s earnings potential, with synergies expected to deliver over $60 million in annual savings by 2027. Capital expenditure in the first half of 2024 totaled $123 million, aligned with the company’s focus on expansion and infrastructure improvement, including investments in low-carbon initiatives like hydrogen refueling and renewable energy infrastructure. Viva Energy’s strategic investments are supported by a balanced capital structure, with net debt at $1.5 billion as of June 2024, primarily financed through a new $1 billion term loan facility.

Viva Energy’s capital discipline is further reflected in its dividend policy, targeting a payout ratio of 50% to 70% of NPAT (RC). For 1H2024, the company declared a fully franked dividend of 6.7 cents per share, representing a 70% payout ratio of NPAT from its C&M and C&I segments.

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Viva Energy Group Limited is positioned as a key player in Australia’s energy landscape, offering a unique blend of traditional fuel expertise and forward-looking investments in sustainable energy solutions. With a comprehensive retail network, significant infrastructure assets like the Geelong Refinery, and a strong financial base, Viva Energy is well-equipped to meet the energy demands of today while preparing for the transition to a low-carbon future.

The company’s commitment to growth is evident through its recent acquisitions and strategic expansion of its Convenience & Mobility and Commercial & Industrial segments. At the same time, its proactive approach to environmental stewardship and investment in renewable technologies underscores Viva Energy’s role as a responsible energy provider in line with Australia’s sustainability goals.

Supported by a seasoned management team and a disciplined financial strategy, Viva Energy is poised to deliver strong returns to shareholders and create lasting value. For investors seeking exposure to a dynamic energy company with a robust foundation, innovative growth strategy, and commitment to sustainability, Viva Energy represents a compelling opportunity in a rapidly evolving industry.

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