Jefferies believes the impact of the Viva Energy refinery fire is milder than expected

Viva Energy stated that current diesel and jet fuel production is at 80% of capacity, while gasoline production is at 60% of capacity. The company expects that once the residue fluid catalytic cracking unit restarts, output will increase to over 90% of capacity within a few weeks. Analyst Michael Simotas said, "This is much better than our previous assumption of diesel and jet fuel production at 80% of capacity and gasoline production at 20% of capacity." This implies an opportunity cost of approximately AUD 30 million in cash, which is lower than Jefferies' initial estimate of AUD 135 million. Jefferies has raised its target price by 4.7% to AUD 2.25 per share.