Viva Energy announces ‘outstanding’ FY2022 results

Viva Energy financial results FY22.

Market volatility and ongoing disruption has failed to diminish exceptional sales and earnings growth for Viva Energy.

The owner of the Geelong Refinery and licencee of Shell fuels and lubricants has reported strong financial results across all parts of the company for FY2022.

Retail delivered EBITDA of $249.6 million in FY2022, a 33 per cent increase on the prior corresponding period.

Sales volumes increased by 7 per cent to 4,515 million litres, led by the more regionally located Dealer Owned and Liberty Convenience networks which continue to benefit from the addition of new stores since FY2021.

The Liberty Convenience network now stands at 94 stores.

Sales volumes growth increased by 9 per cent to 9,737 million litres, led by the recovery in Aviation and Marine and strong wholesale and agricultural demand.

New customer wins, high demand, and steady sales growth across its other commercial businesses also contributed to what the company called an “exceptional commercial performance.”

The Alliance (Coles Express) network achieved weekly fuel volumes of 57.3 million litres in FY2022, 3 per cent above the prior year.

In order to accelerate its strategy to transition to a fully integrated fuel and convenience retailer, Viva Energy announced the acquisition of the Coles Express convenience retailing business for $300 million last September.

Completion of the sale is on track for the second quarter of FY2023.

Full-year dividends reported by the company as 27¢ a share were higher than initially anticipated.

The refining business benefited from a very strong refining margin environment driven by recovering global demand, reduced refining capacity from closures and outages, and supply chain disruptions according to Scott Wyatt, Viva Energy CEO and Managing Director.

“The inherent diversity within our businesses, with exposure to a broad range of sectors and products, is a core strength and competitive differentiation which has again served us extremely well this year,” he said in a statement.

“I am extremely pleased with the performance of our business and the progress we are making on our strategic priorities. We have retained a robust balance sheet for further growth, and are pleased to be able to return a dividend at the top end of our dividend policy,” said Wyatt.

This year, for Wyatt, represents a major step forward in building a leading convenience business through the acquisition of the Coles Express convenience retailing business.

“The convenience market presents considerable non-fuels growth opportunities which we intend to pursue through this acquisition, as well as improving the general operating efficiency by bringing our fuel and convenience businesses together under one operation,” he said.

While fuel demand continued to be impacted by changes in mobility and working modes, expectations were for it to remain robust.

The Geelong Refinery delivered EBITDA (RC) of $517.9 million in FY2022, a more than five-fold increase on the prior year.

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