You have probably filled your car at one of their gas stations, maybe even got a meat pie and coffee without rethinking. But behind the scenes, a quiet force has been building up, shaping how Australians fuel up, move from one country to another, and keep the country on its toes. This is not a story of a global powerhouse, but rather a homegrown story that began with a strong decision and bold move in the year 2014. It is a story in a case study form of a local ambition and a quiet innovation that keeps Australia on the move.
The Great Aussie Takeover – When a Global Giant Handed Over the Keys
Back in 2014, Shell decided to sell their downstream business in Australia. This included everything from their Geelong Refinery to Hundreds of service stations across the country. It was a massive shift. Then came Vitol, a global energy trader, which took all the assets and created a completely new company called Viva Energy. Though it started under the company Shell, make no mistake – this was now an Aussie-run operation with its eyes all set on the future.
Rather than sitting back and operating on the older systems, Viva Energy worked ahead. It made the bold decision to keep refining the oil locally, at a time when most were giving up on that game. This was a very risky decision, which turned out to be the best one. The local focus not only created employment opportunities but also gave Australia more control over its fuel supply, something that would prove to be very important in years to come.
Early Challenges of Viva
The transition from a global giant to a homegrown entity was filled with challenges. Adding multiple assets and operations previously under Shell required proper planning and strategies. Maintaining customer trust during this time was important, especially given the long-standing association with the Shell brand.
Viva faced a very competitive market, which was dominated by already established companies. To tackle these challenges with confidence, the company put more attention towards operational excellence, ensuring a very smooth transition and laying a solid foundation for future growth.
Strategic Moves: Building a Retail Empire
Recognizing the importance of a good retail network, the company moved towards a series of strategic acquisitions to solidify its market presence. In August 2014, after its formation, the company acquired a 50% stake in Liberty Oil, expanding its reach in the wholesale and retail fuel markets. By February 2019, full ownership of Liberty Oil was secured by Viva, strengthening distribution capabilities.
The chain of acquisition continued with the acquisition of the Coles Express Convenience Retailing business in May 2023, adding 700 more stores to its portfolio and creating Australia’s largest fuel and convenience network under a single operator. Then, the company acquired OTR Group in April 2023, further marking Viva’s position as a leading convenience retailer with a network exceeding 1,000 stores around the world.
Where Steel Meets Stamina – Breathing a New Life into Geelong
If there is one place that sums up Viva Energy’s approach, it’s the Geelong Refinery. This refinery was made in the year 1954 and was on the brink when the company took over. Most thought it would have the same fate as other Australian refineries, which meant shutdown and replacement. But Viva saw the potential in it.
They kept the refinery alive by investing in upgrades, safety improvements, and modernization. It now processes around 12,000 barrels per day, supplying over 10% of Australia’s total fuel requirements. And when the global oil chains shook due to the recent pandemic, this old refinery became the lifeline.
More than just survival, Viva has plans for the future, like exploring low-emission fuels and sustainable refining options. The Federal Government recognized the importance too by backing the refinery under the Fuel Security package.
Beyond Fuel
Viva’s vision extended beyond traditional fueling retailing. Diversification included the acquisition of LyondellBasell Australia in April 2022, rebranded as Viva Energy Polymers. This move marked its entry into plastic feedstock manufacturing. Moreover, the company also explored alternative energy options, like proposing a gas import terminal at Geelong’s Corio Bay to address gas issues in Victoria. This $250 million project aims to enhance energy security and provide more work opportunities, though it has faced scrutiny from environmental groups concerned about its ecological impact.
The Numbers Behind the Success of Viva Energy
Since the beginning, Viva has shown exceptional financial performance, portraying a strong market presence. In the year 2022, the company reported a revenue of $17.9 billion, which was a jump from previous years. Through this financial high, Viva continued aggressive expansion while giving returns to shareholders.
In 2018, the company had its initial public offering ( IPO ), which turned out to be Australia’s largest IPO that year, raising approx $2.65 billion. Despite global market changes and pandemic issues, Viva has maintained very strong liquidity and reported $1.2 billion in available cash and undrawn debt at the end of 2022.
Crisis Management During COVID-19
When the COVID-19 pandemic hit Australia, Viva saw multiple challenges. Fuel demand was shaken due to travel restrictions, threatening the viability of the Geelong refinery. But instead of shutting it down, Viva made a strategic move that scored commitment to energy security and provided local jobs as well.
The company negotiated with the Federal Government to secure support under the Fuel Security Act, which meant that the refinery would work in case of lower demand as well. This decision saved almost 700 direct jobs and thousands more, and also maintained Australia’s domestic refinery capacity during the Pandemic. They also showed operational flexibility, adjusting production to meet changing demand patterns as Australians were working from home.
Green and Gold – Viva’s Sustainability Journey
No modern energy company can ignore the need for environmental sustainability. Like the others, Viva Energy was not an exception. The company has been working in the direction of lowering its carbon footprint while maintaining its role as a key energy provider. In 2020, Viva announced their plans to create a New Energies Service Station in Geelong, showing hydrogen refuelling with traditional and electric vehicle charging options. This is a first-of-its-kind station in Australia, which shows Viva’s ambitions and passion for supporting energy transitions. By the year 2030, Viva aims to reduce operational emissions by 10% and has been committed to achieving net-zero emissions by 2050, aligning itself with global climate goals while ensuring energy security for Australia.
Reinventing the Petrol Station Experience
One of Viva’s most visible changes has been the reimagining of traditional petrol stations. Gone are the days when people could only fill fuel at petrol stations; today’s Viva-operated stations, mainly under Shell and Coles Express branding, provide a good retail experience as well. The company has invested in modernizing its retail network with modern contemporary designs, expanding goods and beverage offerings, and advanced digital integration. The introduction of the Shell Card app also allowed customers to pay for fuel from their vehicles.
This retail transformation caused immense growth following the Coles Express acquisition, with Viva using its expanded footprint to roll out consistent, high-quality offerings around Australia. This strategy has caused non-fuel revenue to grow immensely and helped to offset the traditional volatility of fuel margins.
Fueling the Future
From its bold beginnings to becoming a dominant force in Australia, Viva Energy has come a long way through multiple challenges, strategies, and investments. With a strong focus on sustainability, convenience retail, and alternative energy, it is shaping the future of fuel energy. As the industry grows, one thing is clear – this powerhouse is not just keeping up, it’s also driving the change in Australia.
