Refining margins in January were challenging, Australian refiner and marketer Viva Energy said today in its 2025 full-year results, but it expects an improvement over the remainder of 2026.
The company has not released its Geelong refiner margin (GRM) for the first month of the year, but Viva's chief executive Scott Wyatt acknowledged a difficult start to 2026, saying the GRM was below break-even in January but was improving slightly in February, after averaging $9.90/bl last year.
Strong global production in October-December 2025 is still being absorbed, the operator of the 120,000 b/d Geelong refinery said in an investor call following the release of its 2025 results.
The GRM should increase as the year progresses, Wyatt said, but this remains dependent on geopolitical developments as tensions continue to shift global oil markets.
Australia's only other domestic refiner, Ampol, on 23 February reported its Lytton Refiner Margin at $8.13/bl in January, below the $10.34/bl reported for 2025.
Viva is focused on working with Canberra on the Fuel Security Services Payment policy review, to reflect the support needed for the ongoing cost of running refining operations in Australia. The first phase of the review is due to conclude in the present quarter, and an update to the scheme introduced in 2021 must be instituted by 30 June 2027.
Viva posted a full-year net profit of A$184mn ($130mn), down by 28pc from A$254mn a year earlier.
