Viva Energy Group (ASX:VEA) is set to benefit from a surge in Australian refining profits in the wake of the conflict in the Middle East, the Australian Financial Review reported, citing UBS Analyst Tom Allen.
The 2026 earnings-per-share forecast for Viva was lifted by 163% and the forecast for 2027 by 53%, with expected sustained margin expansion from petrol, diesel, and jet fuel.
UBS increased the Geelong refining margin to $20 per barrel in the March quarter and $27 per barrel in the June quarter.
The investment firm maintained a buy rating on Viva Energy with a raised price target of AU$2.70 per share from AU$2.40 per share.
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