Ampol (ALD) H1 2025 earnings summary

Executive summary

• Group RCOP EBITDA was $649 million and RCOP EBIT $404 million, reflecting resilient performance amid geopolitical uncertainty and economic headwinds, with continued growth in retail fuel, convenience, and New Zealand segments.

• RCOP NPAT (excluding significant items) was $180 million, while statutory NPAT showed a $25 million loss due to significant items and inventory losses.

• Interim dividend declared at 40 cents per share, fully franked, representing a 53% payout ratio and releasing $41 million in franking credits.

• Announced acquisition of EG Australia for $1.1 billion, expected to deliver high single-digit EPS accretion, $65–80 million in synergies, and enhance scale in Convenience Retail.

• Significant progress made on 2025 strategic priorities, including productivity savings and expansion of retail segmentation.

Financial highlights

• Total fuel sales were 12.45 billion liters, reflecting a strategic reduction in discretionary international activity and a year-over-year decline from 13.25 billion liters.

• RCOP EBITDA down 12% year-over-year to $649 million; RCOP EBIT down 20% to $404 million.

• Net borrowings 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 ultra-low sulphur fuels project and highway site developments.

• Product and freight markets have tightened post-June, with Lytton Refiner Margin for July rising to US$9.95/bbl.

• 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, especially via the EG Australia acquisition (subject to ACCC approval).

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