27
Aug

Viva Energy Geelong: more jobs planned after strong earnings

Viva Energy’s boss has declared the company will have more job opportunities following a massive earnings result to start 2021.

Viva Energy’s boss has declared the company will have more opportunities for jobs following a $256.3 million before tax earning released on Tuesday.

The earnings before interest, taxes, depreciation, and amortisation for the first half of 2021 is up $124.6m or 95 per cent compared to same period last year.

Viva Energy chief executive Scott Wyatt said the company had agreed to continue refining in Geelong until at least June 30, 2027 with an option to extend a further three years.

“We’ve got a much more long-term secure future now at Geelong which is great news for the whole site,” Mr Wyatt told the Geelong Advertiser.

“If anything it’s actually generating more opportunities for people. We’ve got a big capital program ahead of us now at Geelong.”

Mr Wyatt said the company was buoyed by gains in its retail fuel business, and a return to profit from refining, in the first half of the year.

Refining brought in $38.7m before tax in the first six months of 2021 with an underlying cash flow of $12.7m. That followed a major loss of $66.8m in the same period last year.

Viva’s retail arm continues to prop up the business with $217.6m earnings before tax and an underlying cash flow of $131m in the first six months of 2021.

Mr Wyatt said the refinery has been supported by more than $73m from the Federal Government.

The long-term fuel security package from the Federal Government provides critical support

for the business during periods of low refining margins, recognises the contribution refineries make to the nation’s energy security through the introduction of mandatory stockholding obligations on imports, and materially contributes to the investment necessary to meet new fuel specifications,” Mr Wyatt said.

“Collectively, these measures significantly improve the outlook for the refining business and provide a solid foundation on which to develop the range of projects we plan for our energy hub at Geelong.”

At June 30 the company had a net cash position of $44.7m and will pay a 4.1 cents per share, or $65.9m, dividend to shareholders. Viva also has plans for a share buy back program.

Viva Energy chief financial officer Jevan Bouzo said there was “quite a lot of” capacity in the company’s balance sheet.

A final investment decision for Viva’s gas import terminal is due next year with potential for gas to be imported from 2024.

Viva is due to produce a report later this year about how it will minimise the environmental impact of the project.

It is also progressing with plans to develop a hydrogen refuelling network at Geelong and along the eastern seaboard.

Viva’s share price closed at $1.96 on Tuesday after it opened at $2.05.

VIVA’S FIRST HALF 2021

  • $256.3m earnings
  • $44.7m net cash position
  • 4.1 cents per share dividend
  • 21.4m barrels of crude oil intake
  • 32 per cent of petrol sold was premium unleaded
  • USD$6.10 refining margin per barrel

Extracted from Geelong Advertiser