Ampol (ALD) H1 2025 earnings summary

Executive summary

• RCOP EBITDA was $649 million and RCOP EBIT $404 million, with RCOP NPAT (excluding significant items) at $180 million and a statutory loss of $25 million, reflecting challenging market conditions and significant one-off losses.

• Total sales volume reached 12.45 billion litres, with Convenience Retail and New Zealand segments delivering higher earnings despite economic headwinds and a 6% year-over-year decline in group sales volumes.

• Interim dividend of 40 cents per share, fully franked, declared with a 53% payout ratio of RCOP NPAT (excluding significant items), releasing $41 million in franking credits.

• Significant progress on productivity savings, retail segmentation, and strategic priorities, including the announced acquisition of EG Australia for $1.1 billion, expected to deliver high single-digit EPS accretion and $65–80 million in synergies.

• Revenue fell 16.2% year-over-year to $15,295.0 million, driven by lower crude/product prices and reduced international sales amid geopolitical uncertainty.

Financial highlights

• RCOP EBITDA was $649 million, down 12% year-over-year; RCOP EBIT was $404 million, down 20%; RCOP NPAT was $180 million, and statutory NPAT was a $25 million loss.

• Total fuel sales were 12.45 billion litres, with group sales volumes down from 13.25 billion litres in 1H 2024.

• Net borrowings (excluding leases) stable at ~$2.8 billion; leverage at 2.8x adjusted net debt to EBITDA.

• Net capital expenditure for 1H 2025 was $201 million, including divestment proceeds; FY 2025 capex expected at ~$600 million.

• Shop gross margin in Convenience Retail rose to 39.9% in 1H 2025; premium fuel penetration increased to 56.4%.

Outlook and guidance

• Net capex for 2025 reaffirmed at ~$600 million, driven by the ultra-low sulphur fuels project and highway site developments.

• Product and freight markets have tightened post-June, modestly improving fuel supply chain conditions; normal Lytton operations expected by late September.

• Acquisition of EG Australia targeted for completion by mid-2026, with synergies expected by year two post-completion.

• Medium-term focus on growing fuel and convenience earnings, EV charging, renewable fuels, and retail segmentation.

• Scenario modeling indicates robust fuel demand into the 2030s.