Fund Manager Summary on Viva Energy Group Ltd (ASX:VEA)
In April 2026, Pendal Group commented that Viva Energy Group Ltd (ASX:VEA) was only set to gain minor commercial upside from government-underwritten spot fuel purchases, while the move underscored its strategic importance to Australia’s fuel supply. Overall, fund manager commentary on Viva Energy has turned more constructive in recent months, with the main thesis shifting from near-term disappointment to a recovery and normalisation story supported by stronger refining margins, improving retail fuel margins, and a series of operational and policy tailwinds. L1 Capital has been consistently positive on the medium-term outlook, arguing that H2 2025 should benefit from synergies from the Coles Express and OTR integration, the remaining Liberty Convenience acquisition, and a $50m cost-out program, while also noting that the Convenience business has been held back by difficult integration, under-investment at legacy sites, and illegal tobacco-related margin pressure. By late 2025, L1 said refining margins had improved substantially and that convenience integration and tobacco-related conditions were likely to get better, although it still described Viva as one of the more frustrating positions due to share price weakness and operating headwinds. Pendal’s February 2026 view was more cautious on execution, pointing to a poorly received Q4 update, weak refining results relative to the external environment, only modest improvement in convenience retail, and negative trading at legacy Express sites, though it also noted stronger wholesale volumes. Sentiment improved in March 2026 when Pendal highlighted a revised Fuel Security Support Package that better reflected refinery costs and could materially increase support payments, and by April 2026 the company’s role in national fuel supply was further reinforced by government-backed fuel purchases. Monash Investors was more bullish in August 2025, calling Viva solid and highly prospective and increasing its holding. Taken together, the consensus view is that Viva Energy’s earnings and valuation are being supported by cyclical refining recovery, retail margin normalisation, and policy support, but the investment case still depends on successful convenience integration, cleaner tobacco dynamics, and management delivering on cost and EBITDA targets, with execution risk remaining the key offset to the improving backdrop.
Commentary From The Managers
There are 14 insights from 7 fund managers regarding their investment in Viva Energy Group Ltd (ASX:VEA) available on Thesis Tracker.
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Commentary From The Managers
The completeness, accuracy or current status of the investments referenced are not guaranteed.
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Frequently Asked Questions
Who is investing in Viva Energy Group Ltd (ASX:VEA)?
Fund managers including Cerutty Macro Fund, L1 Capital, Endeavor Asset Management, Milford Asset Management, Monash Investors, Pendal Group and Cyan Investment Management have invested in Viva Energy Group Ltd (ASX:VEA).
Why do fund managers invest in Viva Energy Group Ltd?
Fund managers have been positive on Viva Energy Group because it combines exposure to Australian fuel retailing and refining, with scope for earnings improvement if margins recover. Commentary has also pointed to growth from the OTR and Coles Express integration, convenience store rollouts, cost-outs and synergies, plus possible support from fuel security arrangements. At times, the share price has offered a risk-reward case linked to recovery in refining margins and convenience earnings.
What happened to Viva Energy Group Ltd (ASX:VEA)?
Fund managers have invested in Viva Energy Group Ltd due to anticipated improvements in its refining business, driven by rising global refining margins from geopolitical factors like trade sanctions. Despite recent challenges in its Convenience segment, including integration issues and competition from illegal tobacco sales, managers expect better performance in the coming year. Optimism surrounds potential earnings growth from acquisition synergies and new store openings, which are expected to enhance profitability beyond 2025.
What is the short interest in Viva Energy Group Ltd (ASX:VEA)?
The short interest in Viva Energy Group Ltd (ASX:VEA) is 2.81% which makes it the 87th most shorted stock on the ASX. Of the 1.6B shares that Viva Energy Group Ltd has on issue, 45.7M have been sold short.
What does Viva Energy Group Ltd (ASX:VEA) do?
Viva Energy Group Ltd. engages in the manufacture, distribution, and sale of petroleum products. It operates through the following segments: Retail, Fuels, and Marketing, Refining, and Supply, Corporate, and Overheads. The Retail, Fuels, and Marketing segment involves the merchandise and commercial operation of fuel products. The Refining segment converts imported and locally sourced crude oil into petroleum products including gasoline, diesel, jet fuel, aviation gasoline, gas, solvents, bitumen, and other specialty products. The Supply, Corporate, and Overheads segment relates to contracting access to a national infrastructure network consisting of import terminals, storage tanks, depots, and pipelines. The firm specializes in the aviation, marine, mining, transport, and commercial fleet industries. The company was founded on June 7, 2018 and is headquartered in Docklands, Australia.