Australia’s Viva Energy hits full-year profit as demand recovers

Logo of fuel refiner and distributor Viva Energy, pictured in Corio, Victoria, Australia June 28, 2020. REUTERS/Sonali Paul

Feb 21 (Reuters) – Australian fuel supplier Viva Energy (VEA.AX) posted a full-year profit on Monday from a loss last year as global energy demand recovered from lows of the COVID-19 pandemic and increased refining margins.

Viva and its biggest rival Ampol (ALD.AX), operators of Australia’s last two refineries, have suffered from pandemic-induced lockdowns for the past two years. Businesses are now experiencing a rapid recovery in fuel demand, with the brakes mostly eased and air travel resuming.

“The refining business benefited from strengthening refining margins over the past quarter driven by strong global energy demand,” Chief Executive Scott Wyatt said.

Viva’s net profit after tax on a replacement cost basis was A$191.6 million ($137.38 million) for the year ended 31 December 2021, compared to a loss of A$33.4 million. Australian dollars a year earlier.

The company said rising oil prices are hurting profitability in its retail segment and rising fuel prices could hurt demand in the near term.

It also declares a final dividend of 3.2 Australian cents per share.

($1 = 1.3947 Australian dollars)

Reporting by Harish Sridharan and Navya Mittal; Editing by Daniel Wallis and Grant McCool

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