Viva Energy faces lower production for up to three months: Macquarie
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More news: Viva Energy’s Geelong refinery is likely to operate at lower petrol and aviation gas production levels for between three weeks and three months based on past refinery fires globally, according to Macquarie analyst Mark Wiseman.
In a flash note sent out this morning, Wiseman said that if production is cut by 50% over a three-week period, Viva Energy would face a $20 million EBITDA and $14 million NPAT loss. This is 3% of expected calendar year 2026 NPAT.
If this is pushed out to three months, then Viva could face a $70 million EBITDA hit and a $50 million NPAT hit, 10% of expected NPAT for 2026.
However, Wiseman flagged “the cost of repairs beyond insurance coverage is of course over and above this”.
Wiseman also flagged that Viva said it expects to fully mitigate near-term production cuts for petrol and aviation gas through imports.
Viva shares have been in a trading halt since this morning.
Viva Energy refinery blaze blamed on ‘equipment failure’, fire extinguished
More news: The fire at Viva Energy’s Geelong fuel refinery “appears to have been caused by an equipment failure” although production of diesel and petrol continues at a reduced rate “for safety reasons”, according to Fire Rescue Victoria.
The fire has been extinguished and the incident was deemed under control at 12:04pm AEST. Firefighters remain at the scene to ensure operations continue safely.
Fire Rescue had been responding to the incident since around 11:15pm AEST on Wednesday evening.
Fire Rescue, WorkSafe, Victoria Police and Viva Energy will undertake an investigation into the cause of the fire.
Viva Energy enters trading halt following refinery fire
More news: Viva Energy’s shares have entered a trading halt ahead of an announcement on the impact of a “significant fire at the Geelong Refinery”.
The facility is one of two fuel refineries in Australia and the country’s only onshore refiner of aviation gasoline.
The halt will remain in place until the earlier of the announcement or the open of trading on 20 April.
Fire at Viva Energy’s Geelong refinery to hit petrol production: Chris Bowen
The news: Petrol production at one of Australia’s only two oil refineries will be impacted by an overnight fire that is still burning, Energy Minister Chris Bowen said on Thursday morning, urging Australians not to panic buy.
The fire broke out in the motor gasoline unit at Viva Energy’s Corio refinery in Geelong just after 11pm on Wednesday, following what Fire Rescue Victoria’s assistant chief Michael McGuinness described as a hydrocarbon leak.
The context: It comes as Australia faces fuel security concerns since the US and Israel launched strikes on Iran, effectively closing the Strait of Hormuz and disrupting global oil supplies.
More than 50 firefighters were dispatched. Geelong mayor Stretch Kontelj said the fire was “unprecedented,” adding that management could not recall an incident of this magnitude.
The blaze was contained to the area of origin but was not under control as of 5am AEST, Fire Rescue Victoria said.
What they said: Bowen told Nine’s Today show that diesel and jet fuel were continuing to be produced at reduced levels as a precaution, and warned the facility would “take some time to repair.” He said the fire appeared to be an accident and no one had been injured.
“Buy as much fuel as you need, no more, no less,” he said.
The Corio refinery supplies about 50% of Victoria’s fuel and 10% of Australia’s total, can process up to 120,000 barrels of oil per day and is Australia’s sole manufacturer of aviation fuel, according to the company’s website.
The sources: Fire Rescue Victoria, The Sydney Morning Herald , The Guardian, ASX, Macquarie research
