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.

• RCOP EBITDA was AUD 737 million, down 7.7% year-on-year; RCOP EBIT was AUD 502 million, reflecting resilience in retail and New Zealand segments amid softer refining and international sales.

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

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

• Retail and New Zealand segments delivered improved profitability, supported by premium fuel mix, shop margin growth, and supply chain integration.

Financial highlights

• Statutory NPAT was AUD 235.2 million, up from AUD 79.1 million in 1H 2023, aided by a AUD 22.6 million significant items gain and reduced inventory loss of AUD 21.1 million after tax.

• RCOP EBITDA: AUD 737 million; RCOP EBIT: AUD 502 million; RCOP NPAT (excluding significant items): AUD 233.7 million, down 29% year-on-year.

• Net borrowings at period end were AUD 2,555 million; leverage at 1.9x EBITDA (12-month look back).

• Net capital expenditure for 1H 2024 was AUD 185 million; operating cash flow for the half was AUD 474 million.

• Shop gross margin in Convenience Retail increased by 1.1 percentage points to 37.0%.

Outlook and guidance

• Net capex for 2024 expected at AUD 600 million, including the Ultra Low Sulfur Fuels Project and highway site investments, with commissioning in 2H 2025.

• Capex in 2025 anticipated to remain elevated before normalizing to AUD 400-450 million from 2026.

• Lytton refinery Turnaround and Inspection commenced in July, with production expected to normalize by end of August.

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

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