Viva Energy

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Viva Energy
Company type Public
ASX:  VEA
IndustryOil refining, importing and sales
Founded13 August 2014 (2014-08-13), ASX public listing: July 2018
Founder Vitol(as purchaser of the preceding Shell Australia downstream fuel distribution network)
Headquarters Melbourne, Victoria, Australia
Number of locations
1,334 [1]  (2022)
Area served
Australia
Key people
RevenueIncrease2.svgA$26.7 billion [2]  (2023)
A$713 million [2]  (2023)
Number of employees
>8,000 [3]  (2023)
Website www.vivaenergy.com.au

Viva Energy Australia (ASX: VEA) is a listed Australian company that owns the Geelong Oil Refinery and is licenced to retail Shell-branded fuels across Australia under a license agreement. It also owns and retails fuel through Coles Express, OTR, Reddy Express, Liberty Oil and Westside Petroleum-branded service stations. In total, Viva Energy supplies a network of over 1,330 retail fuel outlets across Australia, supported by an extensive import, storage and distribution infrastructure network, including a presence at over 70 airports and airfields. [4] In addition to manufacturing a range of fuel and other products at the Geelong Refinery, Viva Energy imports fuel supplied by Vitol through 24 fuel import terminals across Australia. [5]

Contents

History

Viva Energy’s business has operated in Australia for over 120 years being formerly known as Shell’s Australian downstream business, which was part of the Shell Group. [6]

Viva Energy was created in August 2014 when Vitol Investment Partnership acquired Shell's downstream business in Australia. [7] Vitol retains 29.9% of VEA shares. [8]

Also in August 2014, Viva Energy purchased a 50% shareholding in Liberty Oil. [9] [10] and in February 2019, Viva Energy took full ownership. [11] [12] As part of this acquisition, 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. [13] Viva Energy will gain rights to fully acquire the joint venture in 2025. [14]

In August 2018, Viva Energy acquired 50% of Westside Petroleum, which operated more than 50 service stations across New South Wales, Victoria and Queensland. In May 2020, it acquired the remaining 50% of Westside. [15]

In late 2020 and in response to the COVID-19 pandemic, which had significant impacts on fuel volumes and therefore refining, Viva Energy worked with the Commonwealth government to develop the Fuel Security Package which provided support for national fuel security and ongoing refining operations as well as investment in cleaner fuels production. Announced on 17 May 2021, the Fuel Security Package (FSP) comprised an industry minimum stockholding obligation, capital grants towards upgrading the Geelong Refinery to produce ultra-low sulphur gasoline and build additional diesel storage and the commitment to maintain refinery operations to 30 June 2028 (with a further two-year option to extend until 30 June 2030). [16] On 3 July 2023, Viva Energy announced a strategic partnership with the Department of Defence to supply aviation, marine and ground fuel to the Australian Defence Force (ADF). It will see Viva Energy play a key role in underpinning Australia’s national security through supply of fuel to the ADF, both locally and internationally. [17]

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. [18] After the sale, Viva Energy REIT changed its name to Waypoint REIT Limited in May 2020. [19]

Viva Energy also acquired LyondellBasel Australia business (rebranded Viva Energy Polymers) in 2022, diversifying into plastic feedstock manufacturing and marketing for its Geelong Refinery operations. [20] [21]

Business Operations

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

Convenience and Mobility

Viva Energy primarily sells Shell-branded fuel at Shell-branded sites, under a license agreement with Shell plc that expires on 31 December 2029. [22]

In May 2023 Viva Energy completed its acquisition of the Coles Express Convenience Retailing business. The acquisition created Australia’s largest fuel and convenience network under a single operator, with more than 700 stores. [23]

In March 2024, Viva Energy completed its acquisition of OTR Group, which supports Viva Energy’s vision to be Australia’s leading convenience retailer, now owning and operating more than 1,000 stores. 

The Shell Card fleet card can be used by fleet customers at Shell branded services stations across Australia.

Commercial and Industrial

Viva Energy is a significant supplier of fuel, lubricants and specialty hydrocarbon products to commercial customers in the aviation, marine, transport, resources, defence, construction, agriculture and manufacturing industries. Viva Energy’s strong position across many segments is underpinned by a national network of fuel supply infrastructure and long-standing customer relationships. [24]

Energy and Infrastructure

Viva Energy has a network of 24 fuel import terminals and a presence at over 70 airports and airfields across the country. Viva Energy supplies around a quarter of Australia’s required petroleum products through its national networks.

The Viva Energy owned Geelong Refinery has been in operation since 1954. The refinery supplies around 50% of Victoria’s fuel and 10% of Australia’s fuel requirements. The Geelong Refinery is one of two refineries remaining in Australia, employing around 700 people. [25]

In addition, Viva Energy has a broader vision to transform the refinery site to become the Viva Energy Hub, which includes a proposed gas terminal and potentially a solar energy farm, projects to support alternative energies such as renewables and hydrogen, and the development of strategic storage to improve fuel supply security. In March 2022, Viva Energy announced a project to construct a site in Geelong which will include hydrogen refuelling, EV charging and diesel [26] [27]

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References

  1. ↑ "Fuel Finder". Viva Energy. Retrieved 14 October 2022.
  2. 1 2 "2023 Annual Report". Viva Energy. Retrieved 28 June 2024.
  3. ↑ "2023 Sustainability Report". Viva Energy. Retrieved 28 June 2024.
  4. ↑ "Viva Energy 2023 Sustainability Report". 2024.
  5. ↑ "Viva Energy 2021 Annual Report". 2024.
  6. ↑ "Viva Energy IPO Prospectus" (PDF). 2018.
  7. ↑ "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.
  8. ↑ "Vitol pays $2.6 billion for Shell's Australian refinery, petrol stations". Reuters . 21 February 2014. Retrieved 21 February 2014.
  9. ↑ "Vitol's Viva Energy buys stake in Australian fuel supplier]". Reuters. 25 August 2014. Archived from the original on 2 October 2022.
  10. ↑ "Viva Energy upgrades the Shell business, targets Liberty stake". Convenience & Impulse Retailing. 11 September 2014. Archived from the original on 2 October 2022.
  11. ↑ "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.
  12. ↑ "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.
  13. ↑ "About Us". Liberty Oil Convenience. Archived from the original on 20 October 2021. Retrieved 14 October 2022.
  14. ↑ "Viva Energy to acquire Coles Express". Viva Energy. 21 September 2022.
  15. ↑ "Viva Energy Acquires Westside Petroleum". Viva Energy. 5 May 2020. Retrieved 14 October 2020.
  16. ↑ "Federal Government Fuel Security Announcement" (PDF). 17 May 2021.
  17. ↑ "Viva Energy secures Australia Defence Force Fuel Supply Contract". 3 July 2023.
  18. ↑ "Viva Energy Sells 35.5% Holdings In Viva Energy REIT". REIT AsiaPac. 21 February 2020.
  19. ↑ "Viva Energy REIT Limited Changes Its Name To Waypoint REIT Limited". REIT AsiaPac. 15 May 2020.
  20. ↑ "Key developments for Viva Energy's Geelong Energy Hub" (PDF). 13 April 2022.
  21. ↑ "Viva Energy completes acquisition of LyondellBasell Australia" (PDF). 31 May 2022.
  22. ↑ "Shell Brand License extension to 31 December 2029". Australian Securities Exchange. Viva Energy. 20 December 2019.
  23. ↑ "Viva Energy completes acquisition of Coles Express Convenience Retailing business - ASX Release" (PDF). 1 May 2023.
  24. ↑ "Viva Energy 2021 Annual Report".
  25. ↑ "Operations: Geelong Refinery".
  26. ↑ "Hydrogen transport future at Geelong Energy Hub" (PDF). 1 March 2022.
  27. ↑ "Viva Energy on target to complete hydrogen refuelling station in 2023". Fuels and Lubes. 17 August 2022.
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