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Australia's Viva Energy drops on extended Geelong refinery unit outage

BUZZ-Australia's Viva Energy drops on extended Geelong refinery unit outage

Updates

** Viva Energy VEA.AX slides as much as 3.8% to A$2.05

** Stock is third biggest laggard on energy subindex .AXEJ, which is down 0.7%

** Fuel retailer's alkylation unit at Geelong Refinery — Australia's largest of only two — to stay offline through 2027 after April fire, hitting LPG-to-gasoline conversion capacity

** Jefferies says repairs to the Residual Catalytic Cracking Unit, which upgrades low-value residue into fuels, are complete, with the refinery set to return to over 90% capacity this week

** Jefferies flags April-May refining margins of $23.9/bbl slightly below estimates, but higher volumes partly offset weakness; sees margins staying elevated near term on tight regional supply

** YTD, VEA marginally higher vs about 15% gain in sub-index


(Reporting by Nichiket Sunil and Kumar Tanishk in Bengaluru)

((Nichiket.Sunil@thomsonreuters.com))

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