Viva Energy has reported solid progress across its non-refining businesses and the successful completion of the Liberty Convenience acquisition.
In an operating update for the three months to 31 March 2025, the company reported that convenience sales (excluding tobacco) grew 0.5 per cent year-on-year, while average gross margin held firm at 38.2 per cent. Fuel volumes across the company-controlled Express and OTR networks rose 1.1 per cent compared to the same period last year.
The Convenience & Mobility (C&M) division continues to be a key earnings driver, with the company on track to deliver EBITDA (RC) of $270 million to $330 million in the first half of 2025, across C&M and Commercial & Industrial (C&I) combined.
Store expansion is accelerating, with plans to open between 40 and 60 OTR-format stores this year through a mix of new builds and conversions. Around 10 conversions are set to begin in the second quarter, mostly in New South Wales. Viva Energy said most of these will be remodels within existing sites, with an average capital spend of $1.5 million per store.
The company has also completed its acquisition of the remaining 50 per cent of Liberty Convenience as of 31 March 2025. The business is expected to contribute between $20 million and $25 million to C&M EBITDA (RC) in FY2025.
Viva Energy said it is on track to realise $30 million in C&M synergies in the second half, with annualised benefits of $60 million by year-end. Key developments in the quarter included rebranding the OTR network from BP to Shell and exiting the BP supply agreement—reducing supply costs by about $10 million in the second half.
Other initiatives include exiting the Coles Transitional Services Agreement by the end of April, delivering net savings of $1.7 million per month from May, and consolidating OTR and Express operations to reduce above-store costs by approximately $10 million in 2H2025.
Group-wide, the company is targeting $50 million in operating cost reductions this year, with cuts focused on discretionary spend, convenience store operations, and corporate overhead.
While refining margins at Geelong were impacted by a power outage and higher energy costs in January, the Ultra Low Sulphur Gasoline (ULSG) upgrade remains on schedule, with supply transitions expected from August.
The company also noted that evolving US tariffs are being monitored but are not expected to materially impact operations at this stage.
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