Record sales but 25 per cent profit drop for Ampol

Ampol has reported its financial results for the 12 months ending 31 December 2023, Full year 2023 Group Replacement Cost Operating Profit (RCOP) Earnings Before Interest and Tax (EBIT) of $1.3bn.

The company said its results were underpinned by earnings growth in non-refining divisions and full 12 months’ contribution from Z Energy, which delivered expected acquisition benefits and synergies.

Convenience Retail continued to perform strongly with RCOP EBIT earnings up 2.1 per cent to a record $354.6m driven largely by improved fuel margins.

Excluding tobacco, network shop sales grew three per cent on a like-for-like basis as key categories of bakery, snacks, beverages and confectionery achieved strong growth, and average basket value also increased year on year.

Matt Halliday, Managing Director and CEO, said: “Ampol continues to successfully execute its strategy, delivering another strong financial performance. This result represents a near record performance including an improved earnings contribution from the non-refining divisions.

“The result reinforces the adaptability and resilience of Ampol’s integrated supply chain in what was another year where energy markets moved rapidly in response to geopolitical events. We continued to grow our Petrol and Convenience earnings, delivering another strong performance in Convenience Retail.

“We benefited from a full 12 months’ contribution from Z Energy including benefits and synergies as a result of the acquisition by Ampol and the transition to Ampol supply through the year. The growth in Fuels and Infrastructure (Ex-Lytton) illustrates how we can respond to changing market conditions through our sourcing capabilities, privileged infrastructure and effective risk management, more than doubling  the earnings compared to last year.

“The balance sheet is strong, providing Ampol with the flexibility to invest in our core fuels and convenience businesses, and to prudently invest in the energy transition while delivering our highest ever dividends to shareholders.

Our strategic assets, supply chain expertise, deep customer base and iconic brands position the Group to succeed today and into the future.”

Overall, the Group has had a strong start to the year, with the Lytton Refiner Margin for January reaching US$13.33 per barrel, while Convenience Retail and Z Energy have continued to trade broadly in line with the same time last year.

Beyond the short term, the company said it will continue to extend and improve its convenience retail offers in both Australia and New Zealand, saying: “These networks will form the cornerstone of an on-the-go charging network, which is expected to extend to 300 charging bays in Australia and 150 charging bays in New Zealand by the end of 2024 and provide Ampol with the flexibility to adapt its approach to transition as it evolves.”

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