Ampol has announced its financial results for the 12 months ending 31 December 2022.
According to Ampol Managing Director and CEO Matt Halliday, 2022 was another “very successful” year for Ampol as the integrated supply chain combined to deliver a record financial result and supported the declaration of record shareholder dividends.
“At the same time, we are continuing to deliver on our 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,” he says. “We remain disciplined with our allocation of capital, prioritising shareholder returns as we strive to get the balance right between core business optimisation and targeted investment in the energy transition to meet the evolving needs of our customers.
“These outcomes were supported by strong operational performances and the dedication of the entire Ampol team who have continued to deliver for our customers while responding to the challenges caused by the rebalancing of global energy markets, extreme weather events and Covid outbreaks.”
Fuels and infrastructure
Fuels and infrastructure (F&I) RCOP EBIT for the continuing operations grew to $853.0 million up 179% year on year. Lytton played an important role, says Ampol, delivering an RCOP EBIT of $686.7 million compared to $158.7 million in 2021.
F&I (excluding Lytton and Future Energy) grew earnings by 28% year on year to $197.4 million. The increase in earnings within F&I, says Ampol, reflects the value of the company’s integrated operations and the management of risk across the supply chain.
Ampol says it continues to invest in the energy transition consistent with plans communicated at the start of the year. The Future Energy team achieved several significant milestones including launching AmpCharge and the installation of the first five pilot sites of the ARENA co-funded network. Learnings across other focus areas including electricity, renewable fuels and hydrogen are expected to contribute to Ampol’s ability to transition with our customers over time.
Convenience retail
The convenience retail business saw “consistently improved” shop performance throughout the year. It benefited from “more favourable” retail fuel trading conditions in the second half.
As a result, Ampol says it delivered the best result for five years with RCOP EBIT of $347.2 million for the full year, an increase of 37% compared to 2021. 2022 retail network fuel volumes were up 0.5% (on a like for like basis) and average retail fuel margins improved in the second half.
Shop gross margin improved, says Ampol, due to “enhanced” product mix, promotional pricing strategies and reduced waste and shrink. Ampol has now delivered the non-fuel RCOP EBIT uplift target from the 2019 baseline, two years ahead of schedule.
While convenience retail benefited from more favourable trading conditions in the second half, Ampol says 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 1800 stores now featuring the 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.
Z Energy
Eight months of trading from Z Energy post acquisition contributed $124.6 million RCOP EBIT to the Ampol Group result, after purchase price accounting adjustments, and 2.76 billion litres of total fuel sales volume.
Since the closure of New Zealand’s only refinery, Ampol says Z Energy has made “good progress” in managing the transition to a full import model with minimal disruption to customers.
The management team continued to progress the synergies and performance improvements outlined at the time of acquisition. To date NZ$22 million of synergies have been delivered in 2022 for an annualised run rate of NZ$55 million.
