Viva Energy has posted an increase of 5.7 per cent in its group fuel sales for 1H2024, which it says has offset sector-wide softness in the retail market.
The company expects an unaudited 1H2024 Group EBITDA to be between $445 million and $455 million for the six months ended June 30.
Within the company-operated fuel and convenience network, same-store fuel and convenience sales each declined by around 5 per cent, which Viva Energy attributed to high oil prices, cost-of-living pressures, and the illicit tobacco trade impacting demand of same-store tobacco sales, which fell by around 17 per cent.
Given the soft environment, convenience and mobility (C&M) 1H2024 EBITDA (RC) is expected to be broadly in line with the 1H2023 reported result. Viva report that good progress is being made to integrate OTR, Express, and Viva Energy Retail and begin capturing synergies, which are expected to drive significant earnings improvements over the next 18 months.
The rise in group fuel sales is attributed to growth in the commercial and industrial (C&I) business with strong demand from the aviation, resources, agriculture and defence sectors.
The OTR Wholesale business also successfully integrated into Liberty Rural during 2Q2024, and Viva says this additional capability in the Northern Territory and South Australia further extends its national footprint into more regional markets.
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