Viva Energy Group Business Model Canvas

The Geelong Refinery processes about 7.5 million barrels per year (≈205 kbpd in 2024) as Viva Energy’s core asset, converting crude into gasoline, diesel, jet fuel, bitumen and specialty chemicals; refining margins contributed roughly A$320m EBITDA in FY2024. Continuous capex—A$120m in 2023–24—targets upgrades for ultra-low-sulfur fuel compliance and a ~6% efficiency gain projected by 2026.

Viva Energy operates ~7,000 km of pipelines, 17 terminals and ~1.2 million m3 of storage across Australia to secure deliveries; in FY2024 it handled ~26 billion litres of fuel and imported ~60% of refined product via major ports such as Geelong and Brisbane.

The Geelong Refinery supplies about 40% of Victoria’s refined fuels and circa 10% of Australia’s total petrol and diesel output, processing ~25,000 barrels per day (2024 throughput) with complex units and 1.2 million cubic metres of storage; this asset secures Viva Energy Group’s upstream-to-retail supply control and supports product-quality margins and about A$300–350 million annual contribution to EBITDA (2024 est.).

Viva Energy owns and operates about 70 fuel terminals and over 1,800 km of pipeline infrastructure across Australia, anchored at major ports and inland hubs, enabling bulk liquid movement from the Geelong refinery and import terminals to end users; this network supports ~60% of its retail and wholesale supply and creates a high barrier to entry, sustaining regional market penetration and stable logistics margins (FY2024 revenue mix data).

Viva Energy supplies ~25% of Australia’s refined fuels capacity via its Geelong refinery (2024 throughput ~2.8 million tonnes) and runs an import network handling ~3.2 billion litres/year, ensuring steady fuel availability for emergency services, logistics and agriculture; this reliability helped keep national petrol/diesel stock cover above the 15-day OECD minimum during 2024–25, supporting customer confidence and operational continuity.

Through the Shell brand, Viva Energy supplies advanced fuel formulations—notably Shell V-Power—claimed to boost engine performance and efficiency; retail sales of premium fuels made up about 18% of Viva Energy’s Australian fuel volume in FY2024, supporting gross margin uplift versus regular grades. This premium focus also covers technical lubricants and specialty chemicals for industry, contributing to the group’s FY2024 downstream product revenue of AUD 3.2 billion.

Viva Energy ties retail customers to Flybuys and the Shell V-Power Shell Card, using loyalty data to tailor offers and track behaviour; in FY2024 Flybuys-driven transactions accounted for an estimated 18% of Coles Express convenience sales while Viva’s retail network reported ~1.2 billion litres fuel sales, boosting repeat-purchase margins via targeted discounts and a reported 3–5% uplift in spend among members.

Commercial and industrial clients are served by dedicated B2B account teams offering personalized service and technical expertise, with account managers overseeing ~1,200 large-site contracts as of FY2024 and average contract lengths of 3–7 years. These multi-year, operationally integrated relationships use monthly performance reviews and customized reporting dashboards, helping Viva Energy maintain >90% retention among top 200 energy users.

The primary channel is Viva Energy’s 1,930 Shell and Liberty-branded service stations across Australia (2025), which act as physical points of sale for fuels, lubricants and convenience retail; forecourt sales generated ~A$5.2bn in FY2024 retail fuel revenue, driving high-margin convenience income. These sites sit on major arterials and shopping precincts to maximize visibility, accessibility and frequent repeat visits.

A specialized sales team manages direct relationships with large energy consumers in aviation, mining and shipping, handling complex negotiations and tailored bulk-delivery contracts (Viva Energy sold ~4.2 billion litres of refined fuels to commercial customers in FY2024). This direct channel captures higher margins by bypassing intermediaries, contributing roughly 18% of group gross margin in 2024 through large-volume, long-term supply agreements.

This segment covers millions of Australian drivers needing fuel and convenience items for personal vehicles; Viva Energy serves them via ~1,900 Shell sites and 200+ OTR stores as of FY2025, capturing steady retail volumes (~4.5 billion litres annual fuel sales group-wide in 2024). Shoppers choose based on location, Shell brand trust, loyalty programs and in-store quality, and Viva targets them with network investment, promotional pricing and OTR food offers to lift basket value.

Trucking firms and logistics providers drive high-volume demand—Viva Energy (ASX: VEA) supplies ~1.2 billion litres annually to this segment via specialized truck stops and Shell Card fleet services, prioritising national network coverage, competitive pricing (fleet discounts up to 8% reported 2024) and integrated telematics for route/refuel optimization.

Crude oil and refined-product purchases are Viva Energy Group’s largest cost, comprising about 70–75% of operating cost of goods sold in 2024 when Brent averaged ~USD 85/bbl and AUD/USD averaged ~0.65; procurement and treasury teams actively hedge price and FX risk, with 2024 derivatives covering roughly 40% of anticipated feedstock needs to limit margin volatility.

Running Viva Energy’s Geelong Refinery costs include about A$450–550 million annually in energy, labor, and specialist maintenance (2024 estimates), plus turnarounds costing A$120–180 million every 3–5 years; these outlays preserve asset integrity and meet Australia’s fuel and environmental standards, including emissions controls and safety upgrades.

The sale of gasoline and diesel through Shell and Liberty networks is Viva Energy Group’s core revenue stream, driven by high volume retail transactions; in FY2025 retail fuel sales accounted for about 58% of group revenue—A$5.1bn of A$8.8bn total (FY2025 provisional). Retail price cycles and consumer demand swing margins, while premium products like Shell V-Power deliver higher margins, typically 20–30% above standard grades.

Convenience store and non-fuel retail sales—food, drinks, groceries—now drive a larger share of Viva Energy Group’s revenue, rising to about A$1.05bn in FY2024 (≈25% of group retail sales) after the OTR acquisition and Coles Express integration completed in 2023.