Ampol has announced its financial results for the six months ending 30 June 2024, delivering a Group RCOP EBIT of $502.1 million.
“Ampol has delivered a resilient performance through a determined focus on the things we can control. This is a significant achievement in an environment of tougher economic conditions across Australia and New Zealand,” says Ampol Managing Director and CEO Matt Halliday.
“In that environment, to grow Ampol’s retail earnings in Australia was a particularly pleasing result. By investing in the premium end of the market, we delivered a favourable premium fuel mix and supported our customers with targeted value promotions such as ‘Crave ’n Save’.
“Our NZ business also performed well, benefitting from an effective integrated supply chain that helped secure gains in wholesale and commercial segments.
“Together with a fuels and infrastructure (F&I) Australia result that was in line with the first half last year, the strength of these performances helped to mitigate short-term impacts from disrupted production at the Lytton refinery and softer international third-party sales and margins.”
Fuels and infrastructure
F&I RCOP EBIT for the first half of the 2024 financial year was $225.9 million. This was lower than the same time last year, which Ampol says is primarily due to the decline in earnings from F&I International and Lytton, while earnings from F&I Australia were broadly in line.
Lytton RCOP EBIT was $89.5 million, down compared to the first half of 2023.
F&I Australia RCOP EBIT was $140.7 million, broadly in line with the first half of last year. Australian wholesale volumes were up 1% as growth in diesel in commercial channels more than offset softer third-party retail channel volumes.
F&I International RCOP EBIT was $20.1 million, lower than the record levels of the first half of 2023.
Energy Solutions (Aus) RCOP EBIT was $24.4 million, in line with the run rate for the second half of 2023. Ampol says it’s progressing the rollout of the AmpCharge on-the-go electric vehicle charging network in Australia. As at the end of June 2024, 92 charging bays at 41 sites have been delivered in Australia as part of the ARENA and NSW Drive Electric programs.
Convenience retail
Ampol says the quality of its retail network has supported further growth in RCOP EBIT for the first half of 2024 in convenience retail, reaching $175.0 million. This is up 4.7% versus the first half last year.
Fuel volumes were down 4.8%, which Ampol says is largely in base grade petrol due to the higher price environment.
“Fuel margins more than offset the decline in volume largely due to the more favourable mix of premium fuels sold,” it says.
Excluding tobacco, network shop sales grew 2.1%. Shop income was broadly in line with the same time last year.
Despite cost-of-living pressures and the continued decline in tobacco (down 15.3%), Ampol says core trading retail metrics have remained strong including average basket value being just 7¢ lower. Shop gross margin continued to increase, reaching 37% (post waste and shrink) through a combination of “favourable” product and channel mix, attachment and pricing.
Total Ampol branded sites as at 30 June 2024 were 1766 including 633 company operated sites. With the rationalisation of the network complete, Ampol says its focus has shifted to investment in premium sites with segmentation of the offer to suit local customer needs and the foodservice expansion including a QSR trial.
New Zealand
The fully debt funded acquisition of Z Energy was completed on 10 May 2022 with 2023 being the first full year of ownership by Ampol.
This half, the NZ segment delivered growth in RCOP EBIT to $127.6 million, up 3.9%.
“The anticipated benefits of the acquisition and business simplification process were reflected in the improved profitability,” says Ampol.
This included the sale of the Mini-Tankers business and the exit from the sale of aviation gasoline to the general aviation market (as opposed to jet) and bitumen following the closure of the refinery. On a like for like basis, fuel sales volumes were down 3.8% largely due to the decline in supply terminal and export sales.
Ampol says Z Energy has also continued to execute on its energy transition strategy with the on-the-go EV charging network reaching 128 bays across 44 sites as at 30 June 2024.
