Ampol

Ampol posts record profit amid strong convenience earnings

Ampol has posted a record bottom-line profit of $795 million for FY2022, including the best convenience retail earnings in five years.

Australia’s largest fuel provider revealed a 42 per cent jump in net profit after tax (NPAT) on the previous year’s figure and a bumper final ordinary dividend of 105 cents per share, as well as a special dividend of 50 cents per share.

Matt Halliday, Managing Director and CEO of Ampol, said the company is continuing to deliver on its strategic priorities.

“The rebrand to Ampol is now complete, we have achieved the Convenience Retail non-fuel RCOP EBIT uplift target ahead of schedule and the acquisition of Z Energy has delivered on our international growth ambitions.”

The convenience retail business delivered RCOP EBIT of $347.2 million, a 37 per cent increase compared to 2021, and the best result in five years.

“While Convenience Retail benefited from more favourable trading conditions in the second half, this performance demonstrates the value of focusing on network quality and investment returns. The network rationalisation is almost complete with the company-controlled retail network reduced to 645 sites by year end.

“The network rebrand is complete, including the EG sites, with over 1,800 stores now featuring the iconic Ampol brand. The introduction of MetroGo sites has reached the target of 50 stores and work continues with Woolworths to refine this offering based on learnings from the initial rollout,” the company said in a statement.

Following the acquisition of Z Energy eight months ago, it has contributed $124.6 million RCOP EBIT to the result and 2.76 billion litres of fuel sales volume.

“Since the closure of New Zealand’s only refinery, Z Energy has made good progress in managing the transition to a full import model with minimal disruption to customers. The exit from the National Inventory Agreement saw Z Energy gain share in the New Zealand market as it benefited from its superior infrastructure position,” explained Ampol.

Looking to 2023, Ampol said that geopolitical factors such as China product export decisions and Russian sanctions would likely continue to influence crude and refined product markets during 2023.

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