Viva Energy Group (ASX:VEA), the Australian licensee of Shell, has reported a 5.7% increase in fuel sales volume for the six months ending June 30. This growth trajectory was primarily driven by a robust performance in the commercial and industrial sector, which offset a decline in the traditionally higher-volume retail segment.
The company’s commercial and industrial fuel unit achieved record sales, surging 8.7% year-on-year. This exceptional performance was underpinned by strong demand from key sectors including aviation, resources, agriculture, and defense. Notably, the successful integration of the OTR Wholesale business into Liberty Rural during the second quarter expanded Viva Energy’s geographic footprint, particularly in the Northern Territory and South Australia.
Conversely, the convenience and mobility fuel segment experienced a 0.9% decline in sales volume. Attributed to a confluence of factors including elevated oil prices, escalating cost-of-living pressures, and a 1.4% decrease in convenience store sales, the segment's performance was subdued. The company’s own fuel and convenience network, encompassing Express and OTR, faced even steeper challenges, with a 5% decline in both fuel and convenience sales. High oil prices, economic uncertainties, and the persistent issue of illicit tobacco trade were identified as primary contributors to this downturn.
Viva Energy’s financial performance during this period was a testament to the company’s ability to navigate a complex and dynamic market environment. While the retail segment faced headwinds, the strength of the commercial and industrial division provided a crucial counterbalance. As the company continues to adapt to evolving market conditions, its focus on operational efficiency and strategic growth initiatives will be paramount in sustaining its momentum.
