Looking to the future, we intend to maintain a strong focus
on outperformance in our traditional business while at the
same time leveraging our diversity to create value in new
growth areas:
• Outperform in our core businesses: we see continued
growth in our traditional markets, with opportunities to
outperform through: maintaining operating and capital
efficiency; optimising sales and margin opportunities;
building brand and customer preference; and profitably
growing market share.
• Leverage diversity to develop new energy and
non-energy growth pathways: convenience offer
development; Geelong Energy Hub Projects; integration
of new energies; commercial and carbon solutions.
• Acquire capability to accelerate proven opportunities:
invest and acquire capability where this can accelerate or
extend our growth opportunities. We have a strong balance
sheet with capacity for reinvestment, and will look to deploy
this in areas which support future growth.
2021 Business performance summary
The Group delivered an exceptional performance across
all parts of the business during 2021 and the management
team is particularly proud of the way we continued to care
for our people and successfully minimised the impacts from
the pandemic on our operations to maintain safe and reliable
supply to our customers through some challenging periods.
Emerging economic recovery and sustained market share
growth across key segments lifted group sales by 7%,
with strong earnings underpinned through our Commercial
and Industrial segments outperformance. Whilst Retail
earnings were impacted from rising oil prices and lower
retail fuel margins, the Refining business benefited from
strengthening refining margins during the final quarter on
the back of strong global demand for energy. Underlying
Group EBITDA (RC) and Underlying Free Cash Flow (RC)
is up $239.6M and $174.0M respectively during the year.
The Company maintained a disciplined approach to capital
management and retains a strong balance sheet that supports
future growth opportunities, which was set out in the Investor
Day that was held in November 2021.
Some of the early foundation steps we have taken in this evolution are shown below.
Today Pathway Future Progress to date
Retail Retail Network
and Branded
Fuels Supplier
Leverage
network
strength
and acquire
convenience
capability
Fuel and
convenience
retailer
• Renegotiated Alliance agreement to fully control fuel offer
• Established and grown Liberty Convenience business to
provide additional retail and convenience growth pathway
• Secured future rights to take full control of Alliance and
Liberty Convenience businesses
• Coles Express store and forecourt refreshment program
• Improved network efficiency across all platforms
Commercial
Commercial
Fuels,
Lubricants and
Specialties
Supplier
Leverage B2B
capability
and customer
relationships
Commercial
and industrial
services and
solutions
• Contracts to operate Rio Tinto, Woodside and HMAS
Cairns fuel facilities
• Established Carbon Solutions business. Launched Carbon
Neutral Jet Fuel and supplied first carbon neutral flight.
Further expansion to other sectors
• Working with customers to deploy Hydrogen fuelled
Electric Vehicles in heavy transport segment
• Partnered with Waga Energy for potential biomethane
offtake as part of lower-carbon product suite
Energy Hub Oil Refinery
and Importer
Leverage
strategic
infrastructure
and internal
energy
capability
Energy and
infrastructure
• Secured contract with Government to operate Geelong
Refinery until at least mid 2028, and construct strategic
diesel fuel storage
• Refining margin volatility risk reduced through FSSP,
with opportunity for upside outperformance
• Progress on Gas Terminal Project at Geelong (FID by Q3
2022) with other projects in progress to create an
Energy Hub at Geelong
About us
Chairman and Chief
Executive Officer’s report
Operating and
financial review Sustainability report Directors’ reportRemuneration report
Auditor’s independence
declaration
Board of Directors
Executive
Leadership Team
15Viva Energy Group Limited – Annual Report 2021
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