Viva Energy Group Ltd. · ASX:VEA
Viva Energy — H1 2022 Earnings Presentation
26 slides from Viva Energy's earnings presentation, Aug 25, 2022
Slide 1: Financial results Half year ended 30 June 2022
Financial results Half year ended 30 June 2022 Helping people reach their destination
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation has been prepared by Viva Energy Group representation or warranty, express or implied, is made as to achievements expressed or implied by these forward-looking Limited, ACN 626 661 032 (“Company” or “Viva Energy”). the fairness, accuracy, completenes
Slide 3: Contents
Contents 4 10 19 22 GROUP FINANCIAL HIGHLIGHTS PERFORMANCE OUTLOOK APPENDIX -------------------- -------------------- -------------------- SCOTT WYATT JEVAN BOUZO SCOTT WYATT CEO COFO CEO Viva Energy Group Limited – 1H2022 Results Presentation 3
Slide 4: Group highlights
Group highlights Scott Wyatt Viva Energy Group Limited – 1H2022 Results Presentation 4
Slide 5: Safety and environmental performance
Safety and environmental performance Total Recordable Loss of primary Process safety events1 Injury Frequency Rate2 containment (>100KG) 4 6.7 5.9 29 3 4.6 2 2 3.6 19 19 10 FY19 FY20 FY21 1H22 FY19 FY20 FY21 1H22 FY19 FY20 FY21 1H22 • Continued focus on management of COVID and general sickness to mi
Slide 6: 1H2022 Highlights
1H2022 Highlights Exceptional refining performance, Commercial recovery Sales volumes EBITDA (RC) Net cash 1H2022 dividend +5% +139% $324M 13.7CPS2 To 6,822ML1 To $612M1 +$419M on FY21 +234%1 Retail, Fuels & Refining Dividends Geelong Energy Hub Marketing • EBITDA (RC) +14%1 to • EBITDA (RC) +747%1
Slide 7: Retail, Fuels & Marketing (RFM) – 1H2022 Highlights
Retail, Fuels & Marketing (RFM) – 1H2022 Highlights Fuel volumes continuing to recover, led by Aviation Retail fuel volumes (ML) Commercial fuel volumes (ML) 11,073 4,210 969 3,706 3,689 8,609 8,896 1,756 3,488 1,126 1,347 1,200 1,473 1,254 1,525 2,175 2,188 2,035 766 771 4,584 4,634 740 4,312 870 9
Slide 8: Retail, Fuels & Marketing (RFM) – 1H2022 Highlights
Retail, Fuels & Marketing (RFM) – 1H2022 Highlights Viva Energy maintaining/taking market share, withstanding a softer period for Retail National market share by fuel type Aus petrol and diesel sales (vs 2019 baseline)2 VEA mkt VEA Market 6% share, growth volume volume 1,2,3 growth 2 growth2 Premium
Slide 9: Refining – 1H2022 Highlights
Refining – 1H2022 Highlights Maximising production in a high margin environment Refining margin cracks1, GRM2, Crude Premia3 (US$/bbl) Refining production (%) 58.0 FY2019 FY2020 FY2021 1H2021 1H2022 14% 17% 17% 17% 48.0 25% Other 12% 3% 3% 5% 4% 38.0 Jet 43% 43% 41% 39% 40% 28.0 Diesel 18.0 Gasoline
Slide 10: Financial highlights
Financial highlights Jevan Bouzo Viva Energy Group Limited – 1H2022 Results Presentation 10
Slide 11: Financial Performance
Financial Performance Refining and Commercial underpin $355M uplift to EBITDA (RC) 1H2022 Group Results All financials in $M unless noted Change otherwise 1H2022 1H2021 (%) (#) 1H2022 Group EBITDA (RC) bridge (A$M) EBITDA (RC) 611.7 256.3 139% 355.4 NPAT (RC) 355.4 111.9 218% 243.5 Capex 90.9 47.3 9
Slide 12: Retail Result 1H2022
Retail Result 1H2022 Maintaining share and preference in soft retail conditions 1H2022 Retail EBITDA (RC) bridge (A$M) Held market share, Impacted by lower margins royalties as shop Increases in compressed by sales partially marketing and rising product normalise, sponsorships to General cost prices
Slide 13: Commercial Result 1H2022
Commercial Result 1H2022 Extends earnings recovery, growing sales volumes ahead of market 1H2022 Commercial EBITDA (RC) bridge (A$M) Other general cost increases Additional margin on spot Trading benefits sales (one-off from supply chain opportunities) arrangements through unusually Market volatile
Slide 14: Refining Result 1H2022
Refining Result 1H2022 Higher costs incurred to produce marginal barrels in a high margin environment 1H2022 Refining EBITDA (RC) bridge (A$M) 1H2022 GRM of US$19.9/bbl vs. Higher energy $US6.1/bbl in costs managed Shipping 1H2021 with a rolling impacted by program of one-off hedging to No support d
Slide 15: Cash Flow
Cash Flow Strong cash flow generation supporting future investments and dividend payments Group net cash flow bridge (A$M) Underlying free cash flow (A$M) Viva Energy Group Limited – 1H2022 Results Presentation 15
Slide 16: Capital Expenditure
Capital Expenditure Lower guidance in FY2022 due to project timing Capital Expenditure (A$M) FY2022 FY2022 $M 1H2022 guidance guidance 250 241 (old) (new) Retail, Fuels & Marketing 36 30 Retail 16 200 32 185 Supply and Corporate 20 14 161 159 Refining 1 20 2 36 150 Base Capital Expenditure 56 230 -
Slide 17: Balance Sheet
Balance Sheet Remain disciplined as we pursue opportunities to deploy capital Change in net cash (A$M) • Returned $49.5M to shareholders through dividends in 1H2022 (announced in 2H2021) • Expect to distribute $213M to shareholders through dividend in September • Continue to target long-term gearing
Slide 18: Dividends
Dividends Determined an interim dividend of $213M,13.7cps 1H2022 • A dividend of 13.7cps was determined for the six months to 30 June 2022 (fully franked) Retail, Fuels & All financials in $m Marketing Refining Group unless noted (RFM) • The dividend comprises 4.9cps from Retail, Fuels & Marketing a
Slide 19: Strategic update and Outlook for 2022
Strategic update and Outlook for 2022 Scott Wyatt Viva Energy Group Limited – 1H2022 Results Presentation 19
Slide 20: Geelong Energy Hub Strategic Update
Geelong Energy Hub Strategic Update Maintaining energy security while building a lower carbon future Energy Green H2 Ultra-Low Co- Efficiency service Sulphur Processing station Petrol Energy • Control system and technology • Commenced development green • Aim to produce petrol to support • Exploring
Slide 21: Outlook
Outlook Business diversification, internal initiatives to support earnings growth Retail Commercial Refining • Volume growth as winter season • Continued demand strength in July • Elevated crude premia and softer passes, Omicron wave recedes and August across all segments regional refinery margins,
Slide 22: Appendix
Appendix 22
Slide 23: Additional information
Additional information Viva Energy Group Limited – 1H2022 Results Presentation 23
Slide 24: Refinery – margin analysis and key drivers
Refinery – margin analysis and key drivers Metric FY18 FY19 FY20 FY21 1H2021 1H2022 A: A$/US$ FX 0.75 0.69 0.69 0.75 0.77 0.72 B: Crude and feedstock intake mbbls 40.1 42.0 34.8 41.2 21.4 21.5 C: Geelong Refining Margin US$/bbl 7.4 6.6 3.1 7.1 6.1 19.9 D: Geelong Refining Margin = C / A A$/bbl 9.9 9
Slide 25: Glossary
Glossary Replacement Cost (“RC”) EBITDA (RC) Historical Cost (“HC”) Geelong Refining Margin Viva Energy reports its performance Profit before interest, tax, depreciation Calculated in accordance with The Geelong Refining Margin is a on a “replacement cost” (RC) basis. and amortisation adjusted to re
Slide 26: Viva Energy
VIVA EnergyAustralia