Ampol (ALD) H1 2024 earnings summary

Executive summary

• Statutory NPAT rose to AUD 235.2 million, nearly tripling year-on-year, driven by lower inventory losses and significant items gains, despite a 1.1% revenue decline to AUD 18,243.7 million.

• Group RCOP EBITDA was AUD 737 million, down 7.7% year-on-year; RCOP EBIT was AUD 502.1 million, reflecting resilient retail and New Zealand performance amid softer refining and infrastructure.

• Interim dividend of AUD 0.60 per share declared, fully franked, with a 61% payout ratio of RCOP NPAT (excluding significant items).

• Total fuel sales were 13.25 billion liters, down 6.5% year-on-year, mainly due to reduced international spot sales.

• Declared FID for the Lytton Ultra Low Sulfur Fuels Project; continued rollout of public EV charging networks in Australia and New Zealand.

Financial highlights

• Statutory NPAT: AUD 235.2 million, up from AUD 79.1 million in 1H 2023, aided by significant items and reduced inventory losses.

• RCOP EBITDA: AUD 737 million, down 7.7% year-on-year; RCOP EBIT: AUD 502.1 million, down 13%.

• RCOP NPAT (excluding significant items): AUD 233.7 million, down 29% year-on-year.

• Net borrowings at period end: AUD 2.56 billion; leverage at 1.9x EBITDA (12-month look-back).

• Net CapEx for 1H 2024: AUD 185 million; FY24 guidance at AUD 600 million, skewed to H2.

Outlook and guidance

• Net CapEx for 2024 expected at AUD 600 million, including the Ultra Low Sulfur Fuels Project and highway site investments.

• Lytton refinery production expected to normalize by end of August after Turnaround and Inspection.

• Fuels & Infrastructure Australia projected to maintain strong fuel sales, annualizing over 15 billion liters, led by diesel demand.

• Convenience Retail and New Zealand segments expected to continue current trends, with consumer pressure and declining tobacco sales.

• Medium-term outlook supported by healthy global demand, refinery utilization, and sector consolidation opportunities.