Gas plant delays pull down Viva Energy profits
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The news: Viva Energy has posted a first-half net profit of $174.1 million, down 51% year on year, as extended maintenance at its Geelong refinery weighed on its bottom line.
The numbers: Viva's convenience and mobility arm told a more positive story, lifting sales volumes by 40% and providing $78 million in cash flow for the group, after acquiring full control of more than 700 Coles Express stores. Viva's commercial and industrial segment sales lifted 15% and provided $127.7 million in extra cashflow. Energy and infrastructure cost Viva $86.9 million due in part to maintenance delays at the Geelong refinery, but CEO Scott Wyatt told investors it would return to full production in September. Viva shares were up 0.64% at 11:30am AEST.
The context: After the successful transition of Coles Express, Viva is working towards its acquisition of petrol store chain OTR Group, expected by the end of 2023. Viva, which supplies about a quarter of Australia's liquid natural gas, has been struggling with delays in its Geelong refinery upgrade and a planned gas terminal nearby.
