Australia's Viva Energy takes $17.5 million extra hit after regulatory review (updated)

Viva Energy

13/04/2026 02:01

Adds details from paragraph 2 onwards

April 13 (Reuters) - An Australian corporate regulator said on Monday Viva Energy VEA.AX has revised how it tests the value of its retail fuel and convenience sites for impairment after a regulatory review, leading to an additional A$25 million ($17.55 million) in impairment charges in its 2025 accounts.

The Australian Securities and Investments Commission (ASIC) challenged the fuel retailer's earlier approach of grouping some sites into a broader Shell Card cash-generating unit, arguing the individual outlets should be assessed separately where their recoverable value can be determined.

Viva adopted the revised approach in its financial statements for the year ended December 2025, lifting total impairment charges on its convenience retail network to A$558.8 million, the regulator added.

The company did not immediately respond to a Reuters request for comment.

While the additional charge represents only about 4.5% of the total write-down, the move signals tighter regulatory scrutiny of accounting judgements and highlights ongoing pressure on the valuation of Viva's retail network.

ASIC said that Australian accounting rules require companies to test assets individually for impairment whenever possible, with broader cash-generating units used only when standalone valuations cannot be determined.

In its 2025 report, Viva said applying the revised approach retrospectively would not have materially affected prior-period results.

Shares in the company rallied as much as 7.2% to a 14-month high on Monday, supported by stronger oil prices and a 3.8% increase in the broader energy sub-index .AXEJ.

($1 = 1.4247 Australian dollars)

 (Reporting by Roushni Nair in Bengaluru; Editing by Sherry Jacob-Phillips)

 ((Roushni.Nair@thomsonreuters.com;))