Ampol (ALD) H2 2024 earnings summary

Executive summary

• RCOP EBITDA was AUD 1.2 billion, down 32% year-over-year, and RCOP EBIT was AUD 715 million, down 45%, mainly due to challenging refining conditions and operational impacts at Lytton.

• Statutory NPAT was AUD 122.5 million, a 78% decrease, with RCOP NPAT (attributable to parent) at AUD 235 million, down 68% year-over-year.

• Convenience Retail and Z Energy segments delivered resilient earnings, with Convenience Retail achieving a 6% CAGR since 2020 and Z Energy showing strong performance despite economic challenges.

• Fuels & Infrastructure Australia remained resilient but faced higher costs and Lytton shortfalls; International segment EBIT dropped to AUD 26 million due to weaker global refining markets.

• Total sales volumes were 27.3 billion litres, with Australian sales at 15.4 billion L and Z Energy at 3.75 billion L.

Financial highlights

• RCOP NPAT (excluding significant items) was AUD 234.8 million, down 68% year-over-year.

• Statutory NPAT was AUD 122.5 million, including AUD 137 million in inventory losses after tax.

• Net borrowings increased to just under AUD 2.8 billion, with a leverage ratio of 2.6x.

• Capital expenditure rose to AUD 642 million, mainly for low sulphur fuels and retail highway sites.

• Dividend payout for 2024 was AUD 0.65 per share (66% of NPAT), fully franked, with AUD 570 million in dividends paid.

Outlook and guidance

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

• Ultra Low Sulphur Fuels project expected to commission by end of 2025; Lytton reliability improvements anticipated.

• Group CapEx for 2025 projected at AUD 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 L.

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