Retail arms differentiate Australia's Ampol and Viva, says Jefferies

Ampol

06/08/2025 21:49

** Analysts at Jefferies note a difference in performance between Australian refiners Ampol ALD.AX and Viva Energy VEA.AX, with their higher-value retail segments showing divergent results

** Says Ampol's convenience retail and New Zealand businesses performing well, backed by improved execution and higher margins

** Brokerage flags Viva's convenience business appears challenged, with On-the-Run store execution below expectations, significant exposure to the tobacco market and sharp contraction in margins at shops (excluding tobacco)

** Jefferies expects both companies to comment on refining outlook in the context of ultra-low sulphur gasoline upgrades underway at respective refineries

** Jefferies maintains a "buy" rating on ALD with an A$31.5 price target, while carrying a "hold" call on VEA with an A$2 price target

** VEA down 19.8% YTD while ALD has fallen 3.6%

 (Reporting by Rishav Chatterjee in Bengaluru)

 ((Rishav.Chatterjee@thomsonreuters.com;))