Viva Energy Australia trading halt: Geelong refinery production not priority CEO confirms
Viva Energy Australia’s chief executive says production is no longer a priority after an enormous blaze hits Australia’s most critical oil refinery amid the global fuel crisis.
Viva Energy Australia chief executive Scott Wyatt said foreign fuel imports should cover any supply shortfall from the fire that broke out on Wednesday, as the company tells the ASX it is entering a trading halt.
Shares in Viva Energy hit a record high of $2.69 on Tuesday day and have climbed around 50 per cent from $1.77 since the Middle East conflict erupted on February 27.
On Thursday, the company put its shares into a trading halt until April 20 or any earlier announcement.
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By continuing you agree to our Terms and Privacy Policy.“We have a very important role in continuing to supply the country, so this is incident is just so disappointing for everyone on so many levels,” Mr Wyatt told reporters on Thursday.
Mr Wyatt confirmed that affected units at the refinery are those that turn liquefied petroleum gas into petrol and other speciality products.
“Production is not our priority today,” said Mr Wyatt “It’s getting the site safe. We still have work to do to understand what damage has occurred and how we can safely restore production across the site. We’ll have to do it without these two units in operation”
Around 50 per cent of Victoria’s fuel supply comes from the refinery. The state’s fire chief said he expected the blaze to continue until around lunchtime on Thursday.
The refinery CEO said that he spoke to Energy Minister Chris Bowen early on Thursday and told him he was “confident” unknown supply shortfalls could be offset by overseas imports.
Asked by a reporter if he was confident that overseas supply could fill any shortfall, Mr Wyatt said. “Yeah, no, we are. I think we obviously just said first and foremost, we need to make the site safe.”
Elsewhere on Thursday morning the Australian dollar hit its highest level since 2022 to buy $US71.8 cents.
“The Australian dollar’s remarkable run continues to be driven by improving risk sentiment, as optimism grows around a potential permanent ceasefire agreement between the US and Iran,” said Tony Sycamore at Market Strategist at IG Markets.
Wall Street also soared on Wednesday, as Australian share futures pointed to a flat open.
“US equities closed at record highs, supported by improving risk sentiment, enthusiasm around artificial intelligence and solid corporate earnings. Moves across other regions were more mixed,” said Westpac.
More to come.
