-- Viva Energy Group (ASX:VEA) reported a 5.1% year-over-year increase in first-quarter sales volume to 4,302 megaliters, driven by an increase of 7.1% in commercial and industrial fuel volume, according to a Monday filing with the Australian bourse.
The company said its Geelong refinery does not typically source Middle Eastern crude. The refinery's current crude supply flows mainly from North America, South America, South-East Asia, and Australia have not been impacted by the Iran conflict, and the plant has firm crude supply through to July "with high confidence that this supply can continue."
The Geelong refinery operated at full production during the first quarter, but will be operating at a reduced capacity over the short term due to a fire that broke out on April 15. Roughly a third of Viva Energy's transport fuel sales are typically sourced from the Geelong refinery, per the filing.
Meanwhile, regional refining margins are expected to remain higher through the second quarter due to the impact from the Middle East conflict. Commercial and infrastructure sales and margins are also expected to remain robust through the second quarter, with aviation demand expected to be impacted by the conflict, Viva Energy said.
The company's shares have resumed trading following a halt after the fire incident, and were down nearly 6% in recent Monday trade.