- Viva Energy Group (VEA) reports a contractor crane failure at its Geelong Refinery in Victoria, causing a compressor to be dropped to the ground
- VEA anticipates repairs will take three months, subject to formal assessment, resulting in a predicted EBITDA loss of more than $25 million per month
- No workers were injured and WorkSafe has been notified, with VEA to also launch an investigation into the cause of the incident
- Viva Energy says it aims to provide more information to the market upon assessing the damage and repair options
- VEA shares are down 2.81 per cent, trading at $3.11 at market close
Australian Energy company, Viva Energy Group (VEA), has experienced a contractor crane failure at its Geelong Refinery in Victoria, causing a compressor to be dropped to the ground.
The extent of the damage to the compressor is yet to be determined, but the company anticipates repairs will take up to three months to complete, subject to formal assessment.
During this period, the company has estimated a refining EBITDA loss ranging from $25 million to $35 million per month, including June, due to production and margin impacts.
However, Viva’s insurance coverage for property damage and business interruption is expected to reduce the extent of this financial impact.
The compressor was being installed as part of maintenance currently underway at the refinery. Thankfully, no one was injured due to the area being closed off.
WorkSafe has been notified, and VEA will also launch an investigation into the cause of the incident.
VEA’s maintenance turnaround is due to finish at the end of June, allowing unaffected units at the refinery to restart.
The company also reports it does not expect any disruptions to the market during this time and will aim to provide more information upon assessing its damage and repair options.
VEA shares were down 2.81 per cent, trading at $3.11 at market close.