Ampol profit surges nearly five-fold as Iran war boosts refining margins
- First-half profit rises nearly five-fold to A$857.2 million
- Interim dividend 185 AU cents vs 40 AU cents last year
- Shares hit highest level in more than two years
Aug 24 (Reuters) — Australia’s top fuel retailer Ampol (ALD.AX), opens new tab posted record interim profit on Monday as higher refining margins linked to Middle East supply disruptions lifted earnings nearly five-fold, pushing its shares to a more than two-year high.
Refining margins at Ampol’s Lytton refinery in Queensland, one of Australia’s only two refineries, more than tripled to $28.26 a barrel in the first half ended June 30.
The Reuters Power Up newsletter by columnist Ron Bousso provides everything you need to know about the global energy industry. Sign up here.
That helped earnings in the fuel and infrastructure (F&I) segment surge more than nine-fold, while convenience retail earnings rose 12%.
Underlying net profit after tax soared to A$857.2 million ($614.44 million) on a replacement cost basis, compared with A$180.2 million a year earlier, comfortably beating the Visible Alpha consensus estimate of A$840 million.
The first-half profit was nearly double the previous record first-half result in 2022 and about 17.1% above the record full-year profit in the same year.
Ampol declared an interim dividend of 185 Australian cents per share, up from 40 cents a year earlier.
Shares of the company rose as much as 4.3% to A$41.59, their highest since early April 2024, while the broader S&P/ASX 200 index (.AXJO), opens new tab was up 0.6% by 0159 GMT.
“The key point to watch is how durable this earnings boost will be once refining margins normalise and the geopolitical tailwind fades,” said Hebe Chen, a market analyst at Vantage Markets.
“For now, though, Ampol is entering the second half with a much stronger earnings and cash-flow profile, alongside a meaningful improvement in investor confidence.”
Ampol expects the acquisition of EG Australia, the local arm of British fuel station operator EG Group, to add to its second-half earnings, with annual synergies of A$65 million to A$80 million seen within two years of completion, and benefits starting to flow through in 2027.
The company forecast net capital expenditure of A$600 million in fiscal 2026 and said it expected spending to fall in 2027.
($1 = 1.3951 Australian dollars)
Reporting by Sherin Sunny and Keshav Singh Chundawat in Bengaluru; Editing by Mark Porter, Sonali Paul and Subhranshu Sahu
Our Standards: The Thomson Reuters Trust Principles., opens new tab