Ampol (ALD) H2 2024 earnings summary

Executive summary

• RCOP EBITDA was $1.2 billion and RCOP EBIT $715 million, both down significantly year-over-year due to weak refining margins and operational issues at Lytton.

• Statutory NPAT was $122.5 million, with RCOP NPAT at $235 million, reflecting a 68% decline year-over-year.

• Convenience Retail earnings grew at a 6% CAGR since 2020, and Z Energy delivered strong performance despite economic pressures.

• Leverage rose to 2.6x, with net borrowings at $2.8 billion.

• Total sales volumes were 27.3 billion litres, down 2% year-on-year, mainly due to reduced international business.

Financial highlights

• RCOP EBIT excluding Significant Items was $715 million, down 45% from 2023; statutory NPAT was $122.5 million, down 78%.

• Dividend payout for 2024 was 65 cents per share (66% of NPAT), fully franked, with $572 million paid.

• Capital expenditure was approximately $641 million, mainly for low sulphur fuels and retail expansion.

• Net borrowings at year-end were just under $2.8 billion, with leverage above target.

• Revenue fell 8% to $34.88 billion, with total expenses down 6% to $34.22 billion.

Outlook and guidance

• $50 million cost reduction program targeted for 2025, with productivity and asset reliability as key focus areas.

• Ultra Low Sulfur Fuels project on track for completion by end-2025, expected to enhance margins.

• Group CapEx for 2025 projected at $600 million, with leverage expected to return to 2–2.5x.

• Convenience Retail and Z Energy expected to continue strong growth; refinery production forecast at 5.8 billion litres.

• Medium-term outlook sees persistent geopolitical disruption, but integrated value chain is well positioned.