Viva Energy's (ASX:VEA) sales volumes up 5.2% in 1HFY22; shares gain

3 min read | July 12, 2022 01:34 PM AEST | By Bhawna Gupta

Viva Energy's (ASX:VEA) sales volumes up 5.2% in 1HFY22; shares gain — Image source: © Youmademoney | Megapixl.com

Highlights

Viva Energy has reported its group sales volumes for the first half of 2022 which has increased by 5.2% over the same time in the previous year.

The company expects an unaudited underlying group EBITDA (RC⁵) for the first half of 2022 to be around AU$614 million.

Shares of Viva Energy were spotted trading 2.19% higher at AU$2.80 per share on ASX at 12.13 PM AEST.

Viva Energy Group Limited (ASX:VEA), a company which manufactures, distributes and supplies petroleum products to retail and commercial customers, has shared its unaudited financial results for the second quarter and first half of the financial year 2022 ended 30 June 2022.

Following the news, shares of Viva Energy were trading 2.19% stronger at AU$2.80 per share on ASX in a strong Australian market today (12 July 2022) at 12.13 PM AEST. This is in line with ASX300 Energy Index, which was 2.11% higher at 9,776.69 points at 12.14 PM AEST.

2Q2022 & 1HFY22 financial updates

The company reported that total group sales volumes in the first half of 2022 has increased by 5.2% as compared to the previous corresponding period (pcp). Viva attributed the rise to robust diesel sales that are above pre-pandemic levels. Although reduced mobility, higher pump prices (driven by high product costs), and unfavourable weather events in New South Wales and Queensland had an impact on retail sales volumes, overall sales volumes are higher than the prior year. This is due to the continued growth in regionally targeted Liberty Convenience and Dealer Owned channels.

Viva Energy expects an unaudited underlying group EBITDA (RC⁵) for the first half of 2022 to be AU$614 million, up 140% pcp. This improvement is mostly because of improved refining performance and ongoing recovery in business sectors that were most significantly affected by the pandemic. Retail performance was negatively impacted by the impact of higher product costs on retail margins.

Through the second quarter of 2022, robust global demand for refined products—particularly diesel—was fuelled by tightened supply. The crunch was due to refinery closures, decreased exports from China, and the broader effects of sanctions on purchasing Russian oil.

In 1H2022, the Geelong Refinery produced at almost full capacity, demonstrating a great operational performance. Actual Geelong Refining Margin (GRM) for the second quarter of 2022 was US$30.8 per barrel, a considerable increase over the GRM of US$8.3 per barrel reported for the quarter ended 31 March 2022 (1Q2022).

Source: © Lovelyday12 | Megapixl.com

What does Viva Energy do?

One of the top energy firms in Australia, Viva Energy claims to be providing over 25% of the country's liquid fuel needs. It has a vast network of more than 1,340 service stations throughout Australia and is the sole provider of premium Shell fuels and lubricants.

Viva’s business portfolio includes bulk fuels, aviation, bitumen, marine, chemicals, and lubricants. These businesses are run via more than 20 terminals and over 50 airports and airfields nationwide. The company also owns the Geelong Refinery situated in Victoria.

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