Viva Energy

Last updated

Viva Energy
Company type Public
ASX:  VEA
IndustryOil refining, importing and sales
Founded13 August 2014 (2014-08-13)
Founder Vitol
Headquarters Melbourne, Victoria, Australia
Number of locations
1,334 [1]  (2022)
Area served
Australia
Key people
  • Scott Wyatt (CEO)
  • Jevan Bouzo (COO)
  • Carolyn Pedic (CFO)
RevenueIncrease2.svgA$15.9 billion [2]  (2021)
Increase2.svgA$1.753 billion [2]  ((2021))
Number of employees
700 [3]  (2021)
Subsidiaries
Website www.vivaenergy.com.au

Viva Energy is an Australian company that owns the Geelong Oil Refinery and retails Shell-branded fuels across Australia under a license agreement. It also owns and retails Liberty Oil and Westside Petroleum-branded service stations. In total, Viva Energy supplies a network of over 1,330 fuel outlets across Australia. In addition to the Geelong Refinery, it imports fuel supplied by Vitol through 22 import terminals. [3]

Contents

In 2023, Viva Energy took over the Coles Express retail business, which operates Shell-branded stations which Viva already supplies fuel to.

History

Viva Energy was created in August 2014 when Vitol Investment Partnership acquired Shell's refining and distribution in Australia. [4] [5] Vitol retained 45% of Viva Energy when it was floated on the Australian Securities Exchange in 2018. [6]

Also in August 2014, Viva Energy purchased a 50% shareholding in Liberty Oil. [7] [8] In February 2019 Viva Energy took full ownership of Liberty. [9] [10] As part of Viva Energy taking full ownership, a new joint venture was established to operate the existing Liberty retail network (Liberty Oil Convenience). The joint venture is 50% owned by Viva Energy (non-controlling) and the other 50% owned by David Wieland and David Goldberger, the founders of Liberty Oil. [11] Viva will gain rights to fully acquire the joint venture in 2025. [12]

In August 2018, Viva Energy acquired 50% of Westside Petroleum, which operates more than 50 service stations across New South Wales, Victoria and Queensland. In May 2020, it acquired the other 50% of Westside. [13]

In late 2020, Viva Energy agreed to be part of an interim government program commencing on 1 January 2021 to prevent more oil refineries closing, by providing one cent per litre subsidy. At that time, Viva Energy's Geelong refinery was one of four operating in Australia, and all but two (Geelong and Ampol's Lytton Oil Refinery near Brisbane) had been announced to be closing in 2021. To continue to receive the payment past July 2021, Viva Energy must agree to keep the refinery operating for much longer in support of national fuel security. [14] It reported a $95.1 million loss in 2020. The refinery site is proposed to be expanded to include a liquified natural gas import terminal. [15]

Viva Energy had a 35.5% stake in Viva Energy Real Estate Investment Trust (Viva Energy REIT, ASX :  VVR) until it was sold to Charter Hall and Charter Hall Long WALE REIT on 21 February 2020. Viva Energy REIT owns service station and convenience properties. [16] After the sale, Viva Energy REIT changed its name to Waypoint REIT Limited in May 2020. [17]

In September 2022 Viva Energy agreed terms with the Coles Group to purchase the Coles Express retail business. As part of the deal Flybuys will remain a partner and Coles Group will continue stocking its own-branded products. [18] [19] The acquisition was completed on 1 May 2023. [20]

In April 2023, Viva Energy agreed terms to purchase the Australian OTR service station chain from Peregrine Corporation adding 205 sites in South Australia and some in Victoria. The transaction was subject to Australian Competition & Consumer Commission and Foreign Investment Review Board clearance. [21] Once completed all Coles Express stores would be rebranded as OTR. [22] The acquisition would also include Peregrine's businesses of Smokemart and Giftbox (SMGB) and Mogas. The Shahin family, who owns Peregrine Corporation, would also be a shareholder of Viva Energy. [23] The ACCC cleared the transaction in December 2023, conditional upon Viva Energy disposing of 25 sites in South Australia to Chevron. In exchange, Viva Energy would receive 13 Chevron sites (Caltex) located in Queensland, New South Wales and Western Australia. [24] As of January 2024, the acquisition will still need to be approved by the FIRB to finalise the acquisition. [25]

In March 2024, Viva Energy entered into an agreement with one of the fastest growing Australian V/Line rail networks, the regional operator of Victoria’s passenger trains and buses. Under the agreement, Viva will supply the premium diesel product Shell Diesel Extra. This will maximize regional production and delivery, which will supply fuel produced or imported through the Gilong refinery. [26]

Operations and branding

A Westside Petroleum service station at Doonside, New South Wales Westside Petroleum Doonside December 2022 1.jpg
A Westside Petroleum service station at Doonside, New South Wales

Viva Energy primarily sells Shell-branded fuel at Shell-branded sites, under a license agreement with Shell plc that expires on 31 December 2029. [27] 710 of these Shell sites are operated by Coles Express, which has been owned by Viva Energy since May 2023.

In addition to the Shell-branded stations, Viva Energy owns and operates Liberty Oil and Westside Petroleum service stations. The Shell Card used in Australia can be used in all Viva Energy service stations including Liberty and Westside. [28]

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References

  1. ↑ "Fuel Finder". Viva Energy. Retrieved 14 October 2022.
  2. 1 2 "2021 Full Year Results Financial Report". Viva Energy. Retrieved 21 September 2022.
  3. 1 2 "About Viva Energy". Viva Energy. Retrieved 11 March 2021.
  4. ↑ "Vitol completes acquisition of Shell's Australian Downstream business; Launches Viva Energy Australia" (Press release). Viva Energy. 13 August 2014. Archived from the original on 4 March 2017. Retrieved 11 March 2021.
  5. ↑ "Vitol pays $2.6 billion for Shell's Australian refinery, petrol stations". Reuters . 21 February 2014. Retrieved 21 February 2014.
  6. ↑ "Vitol raises $2.6bn with Viva Energy IPO". finance.nine.com.au. Retrieved 11 March 2021.
  7. ↑ "Vitol's Viva Energy buys stake in Australian fuel supplier]". Reuters. 25 August 2014. Archived from the original on 2 October 2022.
  8. ↑ "Viva Energy upgrades the Shell business, targets Liberty stake". Convenience & Impulse Retailing. 11 September 2014. Archived from the original on 2 October 2022.
  9. ↑ "Viva Energy set sights on dropping petrol prices as it buys out Liberty Oil". Sydney Morning Herald. 27 February 2019. Archived from the original on 2 October 2022.
  10. ↑ "Viva Energy's proposed acquisition of Liberty Oil's wholesale business not opposed" (PDF). Australian Competition & Consumer Commission. 10 December 2019. Archived (PDF) from the original on 2 October 2022.
  11. ↑ "About Us". Liberty Oil Convenience. Archived from the original on 20 October 2021. Retrieved 14 October 2022.
  12. ↑ "Viva Energy to acquire Coles Express". Viva Energy. 21 September 2022.
  13. ↑ "Viva Energy Acquires Westside Petroleum". Viva Energy. 5 May 2020. Retrieved 14 October 2020.
  14. ↑ Toscano, Nick (14 December 2020). "Viva Energy takes $30m lifeline offer for Geelong oil refinery". Sydney Morning Herald . Retrieved 11 March 2021.
  15. ↑ Clayton, Rachel (24 February 2021). "Geelong's Viva Energy records $95 million loss for oil refinery". ABC News . Retrieved 11 March 2021.
  16. ↑ "Viva Energy Sells 35.5% Holdings In Viva Energy REIT". REIT AsiaPac. 21 February 2020.
  17. ↑ "Viva Energy REIT Limited Changes Its Name To Waypoint REIT Limited". REIT AsiaPac. 15 May 2020.
  18. ↑ "Coles offloads 710 Coles Express petrol stations in $300 million sale". Nine.com.au . Retrieved 21 September 2022.
  19. ↑ Koehn, Emma (21 September 2022). "As Coles lets Express go, convenience stores are ripe for shake-up". Sydney Morning Herald. Retrieved 21 September 2022.
  20. ↑ Packham, Colin (1 May 2023). "Viva closes deal for Coles Express to accelerate convenience shift" . Australian Financial Review. Retrieved 1 May 2023.
  21. ↑ "Viva Energy to acquire OTR Group, transforming its Convenience and Mobility retail business" (PDF). Australian Securities Exchange. Viva Energy. 5 April 2023. Archived (PDF) from the original on 5 April 2023.
  22. ↑ "Service station chain OTR to be sold for $1.15 billion to Viva Energy to 'replace' Coles Express across 700 sites". ABC News. 5 April 2023.
  23. ↑ "OTR goes national in deal with Viva Energy". OTR. 5 April 2023.
  24. ↑ "Viva Energy's proposed acquisition of OTR Group not opposed". Australian Competition & Consumer Commission. 14 December 2023.
  25. ↑ "OTR Group Acquisition Update". Australian Securities Exchange. Viva Energy. 14 December 2023. Retrieved 16 January 2024.
  26. ↑ "Viva Energy taps new supply partnership". Petrolplaza. Archived from the original on 21 April 2024. Retrieved 21 April 2024.
  27. ↑ "Shell Brand License extension to 31 December 2029". Australian Securities Exchange. Viva Energy. 20 December 2019.
  28. ↑ "Liberty-Shell Affinity Card". Liberty Oil. Retrieved 14 October 2022.
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